In the landscape of Ontario family law, few documents carry as much weight—or cause as much anxiety—as Form 13.1: Financial Statement. Often referred to as the “backbone” of a divorce case, this comprehensive financial statement is the engine that drives the division of property, the calculation of support, and the eventual resolution of your legal matter.
If you are navigating a separation or divorce in Ontario that involves property claims, you cannot avoid Form 13.1. However, completing it is more than just a “fill-in-the-blanks” exercise. It is a sworn legal document that requires meticulous accuracy, “full and frank” disclosure, and a deep understanding of how the Family Law Act treats assets and debts.
This guide will walk you through what you need to know about Form 13.1 in Ontario, from the crucial dates you must track to the severe consequences of non-disclosure.
- What is Form 13.1 (And Do You Need It?)
In Ontario, there are two primary types of financial statements used in family court: Form 13 and Form 13.1. Choosing the wrong one is a common mistake that can lead to delays and increased legal costs.
- Form 13 (Support Claims Only): This form is used when you or your spouse are only asking for child or spousal support, and there are no claims regarding the division of property or debts.
- Form 13.1 (Property and Support Claims): This is the more comprehensive form. You must use Form 13.1 if either party is making a claim for:
- The division of property (Equalization of Net Family Property).
- Exclusive possession of the matrimonial home.
- Trust claims or interests in specific assets.
- Any property-related claim combined with support claims.
Because most divorces in Ontario involve at least one of these issues, Form 13.1 is the standard for the majority of cases.
- The Three “Golden Dates” of Form 13.1
Unlike a standard tax return or a simple bank application, Form 13.1 requires you to provide a financial snapshot of three specific points in time. Accuracy here is vital, as these dates determine the “Net Family Property” (NFP) calculation.
a. The Date of Marriage
You must list the value of all assets and debts you owned on the day you were legally married. Under Ontario law, you generally get a “credit” for the net value you brought into the marriage (with the notable exception of the matrimonial home in many cases).
b. The Valuation Date (The Date of Separation)
This is the most critical date. In Ontario, the Valuation Date is typically the date you and your spouse separated with no reasonable prospect of resuming cohabitation. The values of your assets and debts on this specific day will form the basis of the equalization payment.
c. The Current Date (Today)
You must also provide your current financial status to help the court determine your present “ability to pay” or “need for support.”
- Breaking Down the Sections of Form 13.1
Form 13.1 is divided into several parts. To ensure accuracy, let’s look at what is required in each:
Part 1: Income
You must disclose all sources of income, not just your base salary. This includes:
- Commissions, bonuses, and tips.
- Self-employment or business income.
- Investment and interest income.
- Government benefits (EI, CPP, WSIB).
- Rental income or capital gains.
Part 2: Expenses
This section outlines your monthly budget. It is divided into “Household Expenses,” “Health and Medical,” “Transportation,” and more. Be realistic here. If you are seeking spousal support, your expenses must reflect your actual needs and your standard of living during the marriage.
Part 3: Assets (The Detailed Snapshot)
This is where the heavy lifting happens. You must list everything you own, both in and out of Ontario, including:
- Real Estate: The market value of your home, cottages, or rental properties.
- Bank Accounts: Every account, including joint accounts and “hidden” savings.
- Investments: RRSPs, TFSAs, GICs, and non-registered accounts.
- Pensions: In Ontario, pensions are often a significant asset that requires a specific “Family Law Value” valuation from the pension administrator.
- Business Interests: If you own a business or professional practice, you may need a formal valuation.
Part 4: Debts and Other Liabilities
List every dollar you owe: mortgages, lines of credit, car loans, credit cards, and even personal loans from family members.
Part 5: Excluded Property
This is a critical section where many people lose money by failing to claim what is rightfully theirs. Under the Family Law Act, certain property is “excluded” from the equalization process, meaning you don’t have to share its value. Common exclusions include:
- Gifts from third parties (not your spouse) received during the marriage.
- Inheritances received during the marriage.
- Personal injury settlements.
- Life insurance proceeds.
Note: If you used an inheritance to pay down the mortgage on your matrimonial home, you might lose the exclusion. This is a complex area where legal advice is essential.
- The Duty of “Full and Frank” Disclosure
Under Rule 13 of the Family Law Rules, every party has a legal obligation to provide “full and frank” disclosure of their financial situation. This is not a suggestion; it is a mandate.
The court expects you to be a “book of transparency.” If you fail to disclose an asset—even if you think it isn’t relevant—you risk severe penalties.
What Happens if You Don’t Disclose?
Ontario judges take non-disclosure very seriously. If you provide an incomplete or misleading Form 13.1, the court may:
- Impute Income: Assume you earn more than you claim and set support based on that higher number.
- Order Costs: Force you to pay the other party’s legal fees.
- Strike Your Pleadings: Prevent you from participating in the case entirely.
- Find You in Contempt: Which can lead to fines or even imprisonment in extreme cases.
- Set Aside Agreements: Even if you sign a separation agreement, it can be overturned years later if it’s discovered you hid assets.
- Documentation: The Proof Behind the Form
A Form 13.1 is a “sworn” document, meaning it has the same legal weight as giving testimony in a courtroom. You must back up every number with evidence.
The Mandatory Checklist of Supporting Documents
To complete your Form 13.1, you will need to gather:
- Income Tax Returns: Last three years of personal returns.
- Notices of Assessment (NOA): Last three years from the CRA.
- Pay Stubs: Your most recent three stubs.
- Bank Statements: Statements covering the Valuation Date and the Marriage Date.
- Pension Statements: A “Form 4” valuation for any registered pension plan.
- Property Valuations: Appraisals or MPAC assessments for real estate.
- Debt Statements: Proof of balances for all loans and credit cards.
- Common Pitfalls to Avoid
As experts in Ontario family law, we frequently see the same mistakes on self-drafted financial statements:
- The Matrimonial Home Trap: Thinking you can “exclude” the value of the home you brought into the marriage. In Ontario, the matrimonial home is treated uniquely, and you often do not get a date-of-marriage credit for it if you still lived in it on the date of separation.
- The “Net vs. Gross” Error: Putting net income where gross income is required (or vice versa).
- Estimating Without Evidence: Using “round numbers” for assets like cars or jewelry without looking at actual market values.
- Forgetting “Future Tax Liabilities”: When you list the value of an RRSP, you must account for the fact that you will eventually pay tax on that money. Failing to deduct “disposition costs” or “latent tax” can result in you overpaying your spouse.
- How Form 13.1 Impacts Your Equalization Payment
The ultimate goal of Form 13.1 in a property dispute is to calculate each spouse’s Net Family Property (NFP).
The Math: (Assets on Separation Date – Debts on Separation Date) – (Assets on Marriage Date – Debts on Marriage Date) – Excluded Property = NFP
Once both spouses have calculated their NFP, the spouse with the higher NFP pays half of the difference to the spouse with the lower NFP. This is known as the Equalization Payment. Without an accurate Form 13.1, this calculation is impossible to perform fairly.
- Why Professional Legal Help is Essential
Form 13.1 is not just a form; it is your financial story told through the lens of Ontario law. A single error can cost you tens of thousands of dollars in an equalization payment or years of overpaid support.
An experienced Ontario family lawyer does more than just fill out the form for you. We:
- Identify all possible exclusions to protect our clients’ wealth.
- Ensure latent tax liabilities are factored into our clients’ asset values.
- Cross-reference our clients’ spouse’s disclosure to find hidden assets or inconsistent numbers.
- Guide our clients through the Certificate of Financial Disclosure (Form 13A) process to ensure they are court-compliant.
Managing Your Case in the Digital Age
Current Ontario court procedures require documents to be filed electronically via the Justice Services Portal and managed through Case Center (formerly CaseLines). We ensure our clients’ Form 13.1 is formatted, sworn, and filed according to the latest Provincial Practice Directions, preventing our clients’ materials from being rejected by the court clerk.
Conclusion: Start Your Disclosure Early
The best advice we can give anyone facing a divorce in Ontario is to start gathering financial documents immediately. Delaying Form 13.1 only increases conflict, drags out the legal process, and inflates legal fees.
By being proactive, organized, and honest, you set the stage for a much smoother resolution to your family law matter.
Are you overwhelmed by the prospect of completing Form 13.1? Don’t navigate the complexities of Ontario’s financial disclosure rules alone. Our team of experienced family law professionals is here to ensure your rights are protected and your financial future is secure. Contact us (289-652-0529) today to schedule a consultation and let us help you navigate your divorce with clarity and confidence.
DISCLAIMER:
The information provided in this blog is for general informational purposes only and does not constitute legal advice. No attorney-client relationship is established through this writing. You should consult with a qualified attorney for advice tailored to your specific situation. The lawyer and their firm disclaim any liability arising from reliance on this blog or any other content on this website.