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If you are going through a separation or divorce and suspect that your spouse may be hiding assets, you are not alone and you are right to be concerned. Financial disclosure is one of the most important aspects of family law, and when it is ignored, it can lead to unfair outcomes and prolonged legal battles.
The Legal Duty to Disclose
In Ontario, both the Family Law Act and the Divorce Act require spouses to provide full, honest, and ongoing financial disclosure during separation or divorce. This includes everything from income and property to debts and even emerging assets such as cryptocurrency.
Why does this matter? Because fair outcomes depend on transparency. Courts have called non-disclosure "the cancer of family law" due to its ability to delay proceedings and create unfair settlements. The Ontario Court of Appeal (ONCA) has emphasized that hiding financial information goes against the very principles of family law.
Why Financial Disclosure Matters
Ontario courts have made it clear: honesty about finances during divorce is not optional; it is the law. In Kinsella v Mills, the Ontario Superior Court (ONSC) emphasized that spouses must disclose all relevant financial information. The Supreme Court of Canada (SCC) echoed this in Colucci v Colucci, reinforcing that full transparency is essential.
The Ontario Court of Appeal put it plainly in Roberts v Roberts:
"The most basic obligation in family law is the duty to disclose financial information. This requirement is immediate and ongoing."
This duty is especially important in child support cases. In Duffus v Frempong-Manso, the Court found that one parent had deliberately misled the Court to avoid paying support. As a result, the judge imputed income (meaning they estimated earnings based on available evidence) to ensure a fair outcome.
Common Ways Assets Are Hidden
Spouses may hide assets by:
- Under-reporting income
- Transferring property to friends or family
- Using offshore accounts or cryptocurrency
- Failing to disclose business interests
Sometimes, the motive is fear of losing too much. Other times, it is to avoid paying support or to hide questionable sources of income. Regardless of the reason, hiding assets can have serious consequences.
How Courts Respond to Hidden Assets
Ontario courts take a strong stance against financial dishonesty during divorce. If one spouse hides income, property, or business interests, judges are prepared to act.
For example:
- In Rick v Brandsema, the SCC set aside a separation agreement after one spouse misled the other about their finances.
- In LeVan v LeVan, a marriage contract was overturned due to undisclosed business interests.
- In Debora v Debora, the ONSC considered whether hiding assets justified an unequal division of property.
Courts can also:
- Impute income if someone under-reports, as seen in T.N.F. v M.J.V.A.
- Draw adverse inferences as seen in McArthur v Le and Mullin v Sherlock.
- Set aside or vary agreements and orders when financial concealment leads to unfair outcomes.
- Repeated failure to disclose can result in a party's pleadings being struck and losing their right to participate (Matos v Driesman, Aslezova v Khanine, Ferguson v Ferguson).
- Courts may deny claims and refuse equalization or support if disclosure is absent (Cohen v Cohen).
These cases show how judges intervene when transparency is compromised.
Cryptocurrency and Complex Assets
Today's financial portfolios are not just about bank accounts and property, they may include cryptocurrency, private investments, and international holdings. These types of assets can be harder to trace and easier to hide.
In M.M.D. v J.A.H., the ONSC ordered a spouse to disclose their cryptocurrency holdings, showing that courts are adapting to the realities of modern finance. If your spouse's financial situation seems unusually complex or unclear, it may be worth exploring further.
Interested in how Ontario courts treat cryptocurrency in divorce?
Check out our dedicated blog post here.
What You Can Do if You Suspect Hidden Assets
If you believe your spouse is hiding income or property during your separation or divorce, here are practical steps you can take:
- Request full financial disclosure through formal legal channels such as discovery or a court order.
- Challenge unfair agreements. If concealment is proven, you can ask the court to set aside a separation agreement or change an existing order.
- Ask the court to impose remedies such as costs or penalties to ensure a fair division of assets.
- Consider hiring a forensic accountant or investigator to help trace hidden assets. However, as the SCC noted in Colucci, this burden should not fall solely on the person seeking support.
Final Thoughts: Protecting Your Financial Future
Financial transparency is not just a legal requirement but the foundation of fairness in Ontario family law. Courts take non-disclosure seriously and regularly step in when hidden assets threaten the integrity of the process.
Whether you are dealing with traditional property or complex holdings such as cryptocurrency, full and honest disclosure ensures your rights are protected. If you suspect your spouse is hiding assets, do not wait. Act early and use the legal tools available to secure a fair and equitable resolution.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
