Financial disclosure in a New Brunswick divorce requires both spouses to file Form 72J, a sworn financial statement disclosing all income, expenses, assets, and debts. Under Marital Property Act, RSNB 2012, c. 107, s. 12, this disclosure is mandatory whenever either spouse claims support or property division. The filing fee for a New Brunswick divorce petition is $110 CAD, which includes the petition fee and Central Registry clearance certificate. Non-compliance with financial disclosure requirements can result in adverse inferences, cost awards, delayed proceedings, or court orders being set aside.
Key Facts: New Brunswick Financial Disclosure
| Requirement | Details |
|---|---|
| Primary Form | Form 72J (Financial Statement) |
| Filing Fee | $110 CAD (petition + clearance certificate) |
| Residency Requirement | 1 year ordinary residence in New Brunswick |
| Verification | Sworn under oath or statutory declaration |
| Governing Law | Marital Property Act, RSNB 2012, c. 107; Divorce Act, R.S.C. 1985, c. 3 |
| When Required | Any claim for support or property division |
| Property Division | Equitable distribution (not automatic 50/50) |
What Is Financial Disclosure in New Brunswick Divorce
Financial disclosure in New Brunswick divorce is the mandatory legal requirement for both spouses to provide complete, sworn documentation of their financial circumstances to the court and each other. Under Rule 72.12 of the New Brunswick Rules of Court, when a petition for divorce contains any claim for spousal support, child support differing from guideline table amounts, or division of marital property, both parties must file Form 72J regardless of whether they contest the claims. This requirement applies to all divorce proceedings in the Court of King's Bench, Family Division, across New Brunswick's eight judicial districts.
The financial disclosure obligation serves three primary purposes in New Brunswick family law. First, it enables fair property division under the Marital Property Act, RSNB 2012, c. 107. Second, it allows accurate calculation of child support under the Federal Child Support Guidelines. Third, it provides the information necessary for spousal support determinations using the Spousal Support Advisory Guidelines (SSAG). Without complete financial disclosure, the court cannot make informed decisions about the equitable resolution of financial matters between separating spouses.
When Financial Disclosure Is Required
Financial disclosure through Form 72J becomes mandatory in New Brunswick divorce proceedings whenever any party makes a claim involving money or property. This requirement triggers automatically under Marital Property Act, s. 12 when either spouse seeks division of marital assets. The disclosure obligation applies equally to petitioners and respondents, with respondents required to file their financial statement within the time limits specified in the Rules of Court regardless of whether they intend to contest the divorce or the financial claims.
Specific triggers requiring Form 72J filing include claims for spousal support, requests for child support amounts differing from the standard Federal Child Support Guidelines table amounts, applications for division of marital property under sections 3 or 4 of the Marital Property Act, shared parenting time arrangements where child support calculations require income information from both parents, and cases involving a paying parent with income exceeding $150,000 annually. Even in ostensibly simple uncontested divorces, if any financial claim appears in the petition, the disclosure requirements apply.
Form 72J: The New Brunswick Financial Statement
Form 72J is the official financial statement required in New Brunswick family law proceedings involving financial claims. The form must be completed in full, signed, and sworn before a Commissioner of Oaths before filing with the Court of King's Bench, Family Division. Making false statements on Form 72J constitutes a criminal offence under Canadian law because the document is verified by oath or statutory declaration. The form costs $1.00 to obtain from the court office, and detailed guidance is available through the Public Legal Education and Information Service of New Brunswick (PLEIS-NB).
Structure of Form 72J
Form 72J consists of a summary page followed by seven appendices that provide detailed breakdowns of all financial information. The first page serves as an overview displaying totals for income, expenses, assets, and debts. The second page captures other relevant information about your financial circumstances. Each appendix corresponds to specific categories of financial information and helps calculate the summary totals that appear on the first page.
What Each Section Requires
| Section | When Required | Information Disclosed |
|---|---|---|
| Section A | Child support claims | Income details for child support calculations |
| Section B.1 | Spousal support claims; payor income over $150,000; shared parenting | Detailed income and expense information |
| Section B.2 | Anticipated financial changes | Projected changes to income or expenses |
| Part C | All cases | Assets, debts, and property holdings |
| Appendices 1-7 | As applicable | Detailed breakdowns of summary figures |
What Must Be Disclosed: Complete List
New Brunswick financial disclosure requirements demand comprehensive revelation of all financial information. The Marital Property Act, s. 12 requires disclosure of "particulars of all property and debts" with no exceptions for privacy preferences or perceived irrelevance. Failure to disclose any required category can result in court sanctions, adverse inferences in property division, and potentially criminal charges for perjury if the omission is intentional.
Income Disclosure Requirements
Income disclosure in Form 72J requires reporting all sources of income, not merely employment earnings. This includes employment income with overtime, bonuses, and commissions detailed separately. Self-employment income must include business financial statements. Investment income from dividends, interest, and capital gains requires documentation. Rental income from real property must be reported along with associated expenses. Government benefits including Employment Insurance, social assistance, pension income, workers compensation, and disability payments all require disclosure with supporting documentation.
Under Federal Child Support Guidelines, s. 21, parties must provide three years of income tax returns, all notices of assessment and reassessment for those years, and current employment statements showing year-to-date earnings. Self-employed individuals must provide three years of business financial statements. Partners in partnerships must confirm income, draws, and capital. Those controlling corporations must provide corporate financial statements and details of payments to related parties.
Asset Disclosure Requirements
All assets must be disclosed regardless of whether they are held individually or jointly and regardless of when they were acquired. Real property disclosure includes the family home, vacation properties, rental properties, and land. The current market value and any mortgages or liens must be stated. Bank accounts at all financial institutions require disclosure of current balances. Registered accounts including RRSPs, RRIFs, TFSAs, and RESPs must be valued as of the disclosure date.
Employer pension plans require a statement of current value or projected benefits. Investment portfolios including stocks, bonds, mutual funds, and GICs need current valuations. Business interests must be valued, including shares in corporations, partnership interests, and sole proprietorships. Vehicles including cars, boats, motorcycles, and recreational vehicles require current market values. Life insurance policies with cash surrender values must be disclosed. Personal property of significant value including jewelry, art, collectibles, and electronics should be itemized with estimated values.
Debt Disclosure Requirements
All liabilities must be disclosed with current balances, creditor names, and monthly payment amounts. Mortgage debts on all properties require disclosure of outstanding balances and payment terms. Lines of credit, whether secured or unsecured, must be reported. Credit card balances for all cards in your name or joint accounts need current balance statements. Personal loans from financial institutions or individuals require documentation. Student loans, vehicle loans, tax debts owed to CRA, and any other financial obligations must be fully disclosed.
Expense Disclosure Requirements
Monthly expenses require detailed breakdown across multiple categories. Housing expenses include rent or mortgage payments, property taxes, insurance, utilities, and maintenance. Transportation costs cover vehicle payments, insurance, fuel, maintenance, and public transit. Food expenses for groceries and dining must be estimated. Childcare and education costs include daycare, tuition, and school supplies. Healthcare expenses not covered by insurance require documentation. Personal expenses for clothing, grooming, and recreation need estimates. Debt service payments must be itemized.
Income Verification Documents
Beyond completing Form 72J, New Brunswick courts require supporting documentation to verify all disclosed information. Under Federal Child Support Guidelines, s. 21, specific documents must accompany child support applications. The 2021 amendments to the Divorce Act, R.S.C. 1985, c. 3 strengthened income disclosure requirements and authorized Canada Revenue Agency to release tax returns directly to the other party under strict confidentiality conditions.
Required Documents by Employment Type
| Employment Type | Required Documents |
|---|---|
| Employees | 3 years tax returns; 3 years NOAs; current pay stub showing YTD |
| Self-Employed | 3 years tax returns; 3 years business financial statements |
| Partnership | 3 years tax returns; confirmation of income, draws, capital |
| Corporation Control | 3 years corporate financial statements; breakdown of payments to related parties |
| Trust Beneficiary | Trust settlement agreement; 3 years trust financial statements |
| Government Benefits | Current statement showing annual benefit amount |
Timeline for Document Production
Respondents in New Brunswick divorce proceedings must provide required financial documents within 30 days of being served if residing in Canada or the United States, or within 60 days if residing elsewhere. When a payor's income is established as exceeding $150,000 annually, the payee must provide their own financial documents within the same timeframes. These deadlines are mandatory under the Federal Child Support Guidelines and failure to comply can result in immediate court intervention.
Child Support and Financial Disclosure
Child support calculations in New Brunswick rely entirely on accurate financial disclosure from both parents. The Federal Child Support Guidelines establish table amounts based on the paying parent's gross annual income and the number of children. For straightforward cases using table amounts with income under $150,000, only the paying parent's income verification is strictly necessary. However, any deviation from table amounts or special circumstances requires full financial disclosure from both parents.
When Both Parents Must Disclose
Both parents must provide complete financial disclosure in several common scenarios. Shared parenting time arrangements where children spend at least 40% of time with each parent require calculation based on both incomes. Split parenting arrangements where each parent has primary parenting time with different children need both incomes for set-off calculations. Income over $150,000 annually for the paying parent triggers disclosure from both parties. Section 7 extraordinary expenses such as childcare, medical, educational, or extracurricular costs require proportional contribution based on both parents' incomes.
Continuing Disclosure Obligation
Financial disclosure is not a one-time obligation. Under Federal Child Support Guidelines, s. 25, every parent paying child support must provide updated income documentation annually upon written request from the other parent. This continuing obligation lasts as long as the child qualifies for support under the Guidelines. The annual disclosure must include tax returns and notices of assessment for the most recent year not previously disclosed. Failure to provide annual updates can result in imputed income or variation applications.
Spousal Support and Financial Disclosure
Spousal support claims in New Brunswick require complete financial disclosure from both spouses because entitlement, amount, and duration all depend on the financial circumstances of both parties. The Divorce Act, s. 15.2 sets out the objectives and factors for spousal support orders, all of which require financial information to apply. New Brunswick courts routinely apply the Spousal Support Advisory Guidelines (SSAG) as a starting point for determining support amounts and duration.
SSAG Formula Requirements
The SSAG without-child formula calculates support as 1.5% to 2.0% of the gross income difference between spouses multiplied by years of marriage. For a 10-year marriage with a $50,000 income difference, support would range from $625 to $833 monthly at the low and high ends. The SSAG with-child formula uses Individual Net Disposable Income (INDI), targeting 40% to 46% of combined INDI for the lower-income spouse after child support obligations. Both formulas require verified income information from both spouses.
Income Thresholds in SSAG
The SSAG applies specific income parameters that affect disclosure requirements. The payor income floor of $20,000 gross annual means payors earning below this amount generally owe no spousal support. The payor income ceiling of $350,000 gross annual marks where courts exercise discretion rather than mechanical formula application. The recipient income cap affects maximum support entitlement. These thresholds require accurate income verification from both parties to properly apply the guidelines.
Property Division and Financial Disclosure
Marital property division in New Brunswick operates under the Marital Property Act, RSNB 2012, c. 107, which requires division of "marital property" acquired during the marriage. Unlike some provinces with automatic 50/50 division, New Brunswick uses equitable distribution principles allowing the court to divide property in proportions that are fair given all circumstances. Financial disclosure is essential because the court cannot equitably divide property it does not know exists.
Categories of Marital Property
Marital property subject to division includes the matrimonial home regardless of whose name appears on title, all property acquired by either spouse during the marriage, property acquired before marriage if used for a family purpose, and the increase in value of property brought into the marriage. Excluded property requiring proof includes gifts and inheritances received by one spouse alone, insurance proceeds, and personal injury awards. Complete financial disclosure allows proper categorization and valuation of all assets.
Valuation Date and Disclosure
New Brunswick typically values marital property as of the separation date, though courts have discretion to choose other dates where appropriate. Financial statements must disclose current values, but parties should also document values at separation for property division purposes. Changes in value between separation and trial may affect how property is divided. Comprehensive disclosure at the outset prevents disputes over values later in proceedings.
Consequences of Non-Disclosure
Failure to provide accurate and complete financial disclosure in New Brunswick divorce proceedings carries serious consequences. The court has broad powers to address non-compliance, and the consequences escalate based on the severity and apparent intentionality of the disclosure failures. Sworn financial statements make deliberate non-disclosure potentially criminal as well as civilly sanctionable.
Procedural Consequences
Procedural consequences for non-disclosure can derail divorce proceedings entirely. The court may strike pleadings and claims of the non-compliant party. Costs awards against the non-compliant party can reach full indemnity, meaning payment of all the other party's legal fees. The court may draw adverse inferences, assuming undisclosed information would be unfavorable to the non-disclosing party. Proceedings may be delayed indefinitely until disclosure is complete, increasing costs for both parties.
Substantive Consequences
Beyond procedural penalties, non-disclosure affects the actual outcome of the case. Courts may impute income higher than disclosed for support calculations. Property awards may be adjusted to compensate for hidden assets. Settlement agreements and court orders can be set aside if subsequent discovery reveals material non-disclosure. In the 2023 case of Cummings v. Fawn, failure to disclose assets led to a finding of fraud and the setting aside of a previous settlement order.
Criminal Consequences
Form 72J is sworn under oath or statutory declaration, making false statements criminal perjury. Perjury is an indictable offence under the Criminal Code carrying a maximum sentence of 14 years imprisonment. Social media posts contradicting sworn financial statements constitute evidence of perjury and are regularly used in New Brunswick family law proceedings. The requirement to verify statements by oath reflects the seriousness with which the legal system treats financial disclosure obligations.
Confidentiality Protections
While financial disclosure requirements demand extensive personal financial information, New Brunswick law provides confidentiality protections for sensitive data. Under Marital Property Act, s. 13, if the court believes public disclosure of information in a financial statement would cause hardship to the person providing it or any other person, the court may order the statement and any cross-examination treated as confidential and excluded from the public record.
Requesting Confidentiality Orders
Parties concerned about public access to their financial information can apply for confidentiality orders before filing their financial statements. The application must demonstrate that public disclosure would cause genuine hardship, not merely embarrassment or inconvenience. Common grounds include protection of business trade secrets, safety concerns related to domestic violence, and protection of third parties such as business partners who appear in financial documentation. The court balances open court principles against privacy interests in each case.
Family Dispute Resolution Requirements
The Family Law Act, SNB 2020, c. 23, s. 7 requires lawyers to encourage clients to attempt resolution through family dispute resolution processes and to certify compliance in all filed documents. Under s. 8(1), courts may order parties to participate in family dispute resolution including mediation, negotiation, or collaborative law. Complete financial disclosure facilitates alternative dispute resolution by ensuring both parties negotiate with full information.
Benefits of Early Disclosure
Providing complete financial disclosure early in the process, even before formal requirements mandate it, offers significant advantages. Mediation and collaborative law processes work best when both parties have full financial information from the outset. Early disclosure builds trust and demonstrates good faith. Settlement negotiations proceed more efficiently when neither party suspects hidden assets or income. Legal costs decrease when discovery disputes are avoided through voluntary disclosure.
How to Complete Form 72J
Completing Form 72J accurately requires organized financial records and careful attention to detail. The form is available from any Court of King's Bench registry for $1.00 or can be downloaded from the Government of New Brunswick website. The Public Legal Education and Information Service of New Brunswick (PLEIS-NB) publishes "Financial Statements and Income Information: A Guide to Completing Form 72J" providing step-by-step assistance. The Family Law Information Line at 1-888-236-2444 offers additional support.
Preparation Steps
Before completing Form 72J, gather all required documentation including three years of tax returns with notices of assessment, current pay stubs or income verification, bank statements for all accounts, RRSP and pension statements, mortgage statements and property tax assessments, vehicle ownership documents, investment account statements, and all debt statements. Organize documents by category matching the form's structure. Calculate average monthly expenses across at least three months for accuracy.
Filing Requirements
Form 72J must be sworn before a Commissioner of Oaths before filing. Commissioners are available at court registries, law offices, and some financial institutions. The completed form must be filed with the Court of King's Bench, Family Division, and served on the other party. Keep copies of the filed form with the sworn signature page for your records. Update the financial statement if your circumstances change materially before trial or final agreement.