When you file for divorce in Canada, you must fully disclose ownership of any offshore bank accounts. These holdings are...
When you file for divorce in Canada, you must fully disclose ownership of any offshore bank accounts. These holdings are potentially subject to our country’s equal division principles, as are all marital assets.
Failing to stay transparent about these accounts could lead to legal consequences, so it is important to include them on your financial statements. However, there may be exclusions, depending on your circumstances. Learn more about offshore bank accounts and the transparency, disclosure, and division policies for high-net-worth individuals.
Canada’s family courts recognize the contributions of both individuals within the marriage and enforce an equal division of family property rule upon dissolution of the marriage. Therefore, offshore bank accounts are subject to the country’s full disclosure laws as with any other asset. Both spouses have a legal duty to provide an accurate and complete statement, including all sources of income, assets, debts and expenses, whether these are domestic or foreign holdings.
This level of transparency is crucial to the divorce process in Canada, as it affects the division of property and the calculation of child support payments. The fair and equitable separation of all assets acquired during the marriage benefits both spouses. It also allows the couple and their lawyers to reach an informed settlement and determine whether spousal support is necessary.
If you fail to transparently disclose your offshore bank accounts for division during a divorce, you could face legal penalties. The court takes this act seriously and may penalize the non-disclosing party. If information about the offshore bank account was deliberately concealed, a family court judge may charge you with contempt of court, which may come with fines or even jail time.
Each party has 30 days after serving or being served with the divorce application to provide full and frank financial disclosure by completing a financial statement, if required. A party may request an extension of time to serve their financial disclosure, but this must be agreed to by the opposing party or granted by the court. The court has the ultimate discretion to permit or deny such an extension.
We recommend consulting with the skilled lawyers at The Riley Divorce & Family Law Firm today. Our team would help you understand the financial disclosure obligations in your jurisdiction for your offshore bank account. We are available 24 hours a day to provide you with the comprehensive service our clients deserve. Contact us today to understand your legal options.
Paul Riley Law Office
