What if My Spouse Is Hiding Assets in British Columbia?

It is hard to deal with a separation when you think the other person is not being open about money. Maybe accounts have gone quiet, a business seems to be earning less, or property has been moved to a relative.

This article explains how financial disclosure works in British Columbia, what the court can do when information is missing or misleading, and the practical steps people usually take first. It is general information, not advice on your situation.

This article covers the law of British Columbia.

Why hidden assets matter

Family property is everything the spouses own separately or together on the date of separation, and it does not matter whose name it is in. Unless an agreement or order says otherwise, spouses are equally entitled to family property and equally responsible for family debt.

The list is broad. It includes interests in a corporation, partnership or business, income tax refunds, money in a financial institution account, and entitlements under pension, retirement savings or income plans. Property a spouse disposed of after the relationship began can still be family property if that spouse keeps authority to require its return or direct its use.

Some property is excluded, such as property acquired before the relationship began, inheritances and gifts from a third party. The spouse who says property is excluded is responsible for demonstrating that. Even then, the increase in value of excluded property during the relationship is generally shared.

How financial disclosure works

A court may, at any stage of a proceeding, order a party to disclose information under the Family Rules, and that information can be used only to resolve the family law dispute.

In the Supreme Court, a spouse claiming property or debt division under Parts 5 or 6 of the Family Law Act must complete a financial statement in Form F8. The income documents to attach include tax returns for the three most recent years, notices of assessment, a recent earnings statement for employees, and the latest property assessment notice for owners of real property.

Timing matters. A party must file Form F8 and income documents at least 7 days before a judicial case conference, and a statement served more than 91 days before trial or a hearing must be updated at least 28 days before. Comparing your spouse's statement with their tax returns, assessment notices and your own records is often the quickest way to spot gaps.

What the court can do if information is incomplete or false

If a person does not follow a disclosure order or the Rules, or gives incomplete, false or misleading information, the court has a range of tools. These include:

• ordering disclosure
• drawing an adverse inference, including attributing income
• requiring security
• ordering payment of expenses
• ordering an amount up to $5,000 to a party or affected spouse or child, or imposing a fine up to $5,000
• making any other order the court considers appropriate

There are also consequences for how property is divided. The court may order an unequal division where a spouse substantially reduced property value, or disposed of, transferred or converted property other than in good faith. Unequal division is only available where equal division would be significantly unfair, and the government says courts will not order it in most cases.

If you already signed an agreement and later learn of hidden assets, it can be set aside or replaced on grounds such as non-disclosure. If a party knowingly failed to disclose relevant information and the agreement is set aside, the court may order that party to pay the applicant's family dispute resolution expenses.

Protecting property while you sort it out

If you fear property will be sold or moved, the court must, on a spouse's application, make an order restraining the other spouse from disposing of the disputed property unless that spouse shows the claim will not be defeated or adversely affected. The order can be made before the other spouse receives notice, and it can later be changed, suspended or terminated.

Where land is involved, a party to a property division proceeding may register a certificate of pending litigation against any interest in land whose title could change as an outcome of the proceeding. The restraining-order rule is about disputed property generally, not only land. How these steps apply to a particular bank account, business interest or other asset depends on your situation, so it is worth confirming with a lawyer.

What to do next

• Write down what you know and why you suspect something is missing, without accessing accounts or devices you are not entitled to use.
• Gather your own records: tax returns, notices of assessment, bank and investment statements, property assessment notices and business documents.
• Note the date of separation. Ownership is fixed as at separation, while value is measured at the agreement or hearing date.
• Check your deadline. A property claim must generally be started within 2 years of the divorce judgment for married spouses, or of separation for spouses in a marriage-like relationship.
• Ask a lawyer about disclosure demands and a restraining order if you fear property is being moved.

The time limit is suspended while the spouses are in family dispute resolution with a family dispute resolution professional or a prescribed process. Do not assume it applies to you without confirming the dates.

Frequently asked questions