The Form F8 Financial Statement: A Brief How-To-Guide for Divorce Disclosure

This document is an integral part of the divorce process and helps ensure you get a fair settlement.

Your divorce matter is filed in the BC Supreme Court, and you have just been handed a blank copy of the Form F8 Financial Statement. You understand that it is important to be truthful and accurate when filling out the Financial Statement form and that you will ultimately have to swear or affirm the truth of its contents, but you don’t know where to begin or what is being asked of you or why you need to provide in-depth financial disclosure. Unless you have a background in accounting or finances, completing this form can feel intimidating and overwhelming. We can help guide you through this process.

Breaking Down the Financial Statement

The Form F8 Financial Statement is a sworn document summarizing your income, expenses, assets, and debts, and is generally a requirement under the BC Supreme Court Family Rules. When you are participating in the court process to resolve your family law issues, such as claims to spousal support, child support, special and extraordinary expenses, and property division, you have a duty to provide detailed information about your finances. This information is necessary to properly assess your entitlements and obligations under BC family law and to determine fair and appropriate arrangements or orders governing these family law issues.

The F8 Financial Statement is organized into six parts, not all of which you may be obligated to complete, depending on your personal circumstances:

·         Part 1 – Income;

·         Part 2 – Expenses;

·         Part 3 – Property;

·         Part 4 – Special/Extraordinary Expenses;

·         Part 5 – Undue Hardship; and

·         Part 6 – Income of Other Persons in Household.

The form explains which sections you must complete.

Assembling Your Supporting Documentation

In addition to completing the form, you will need to provide supporting documentation, including full income tax returns and notices of assessment or reassessment for the three most recent tax years. Depending on your circumstances, you may also need to provide additional documents as follows:

• If you’re an employee, your most recent statement of earnings, showing your total earnings (including overtime) paid so far this year, or a letter from your employer that says what your total earnings (including overtime) are so far this year, and what your annual salary is;

• If you’re self-employed, a copy of the financial statements for your business or professional practice (other than a partnership), and a statement showing a breakdown of all salaries, wages, management fees, or other payments or benefits paid to, or on behalf of, people or corporations you deal with closely (not at arm’s length);

• If you’re a partner in a partnership, confirmation of your income drawn from and capital in the partnership for the three most recent tax years;

• If you control a corporation, the financial statements of the corporation and its subsidiaries and a statement showing a breakdown of all salaries, wages, management fees, or other payments paid to, or on behalf of, people and corporations that your corporation and all related corporations deal with closely (not at arm’s length);

• If you’ve received payouts from a trust, a copy of the trust settlement agreement and copies of the trust’s three most recent annual financial statements;

• If you’re getting income assistance, a statement from the Ministry of Social Development & Poverty Reduction that shows how much you have received in benefits and for which months you received it;

• If you’re getting EI benefits or worker’s compensation benefits, copies of the three most recent benefit statements; and

• If you own real estate, a copy of your most recent property assessment notice (e.g., a BC Assessment notice).

General Tips and Insights

Based on our experiences with assisting clients with their F8 Financial Statements, we can provide a few general tips and insights:

1.       Allow yourself a generous amount of time to complete the F8 Financial Statement and start well in advance of the filing deadline. If you leave it to the last minute, you risk forgetting or misstating important information or not having enough time to gather the relevant financial documents you need to attach to your F8 Financial Statement. As a result, you may need to redo your F8 Financial Statement later and incur additional legal expenses.

2.       Assemble all of the supporting documentation you will need to attach to the F8 Financial Statement first. Doing this before you start to fill out the form can help ensure that the information you enter into the form is accurate and supported by the evidence.

3.       Once you have completed an initial draft of your F8 Financial Statement, compare your total gross annual income with your total annual expenses. If your reported expenses significantly exceed your reported income, consider whether you underreported income or overestimated expenses. Be prepared to explain any discrepancy, as this is something the opposing counsel, the opposing party, and the court will likely pay attention to. Your F8 Financial Statement should be internally consistent.

4.       Be honest when completing your F8 Financial Statement. Providing false information can ultimately hurt your case and undermine your credibility.

5.       Even if you are attempting to resolve your family matter out of court, such as through mediation, and the F8 Financial Statement is not strictly required, completing and providing one to the other side can play a significant role in helping you and your ex-spouse reach a fair and reasonable settlement.

Completing an F8 Financial Statement is daunting for most people. Receiving the professional assistance of a lawyer can help make this process less stressful and more efficient. Please contact us for a consultation.

The material provided in this blog is for general information and education purposes only and does not contain, and should not be construed as containing, legal advice applicable to a particular set of facts. If you require legal advice, please contact us for a consultation with one of our experienced family law lawyers.