Part 3: Responding to a Disclosure Request

As someone who has both written and received disclosure requests, I understand how overwhelming it can feel for clients, who often do not know where to start.

That said, once a disclosure request is received, the first step is to read it carefully. As discussed in earlier parts of my “Disclosure Request” series [see Part 1 here, and Part 2 here], not every request is created equal.

Identify which requests are clear, which require clarification, and which may be ambiguous. Not every request will be straightforward, and it is important to understand what is being asked and how the information relates to the financial issues at stake, such as income determination and/or business valuation, to ensure that the information provided is both responsive and meaningful in the context of the issues being addressed.

Next, consult a professional.

Certain requests may appear unreasonable, disproportionate, or beyond the scope of the family law matter. In some cases, counsel may seek additional input or a reporting letter from a CBV to help formulate their response to questions they believe are overreaching. It is also worth keeping in mind that, in some cases, a practical approach to disclosure may be more efficient than formally disputing certain requests, even if they appear overreaching.

While some clients choose to prepare their responses on their own, depending on the questions being asked and the client's familiarity with the underlying records, it is usually more efficient to get assistance from a bookkeeper or accountant. Poorly worded, incomplete, or inaccurate responses are likely to lead to repeated requests, which in turn cause delays and additional professional fees.

Once the materials are assembled, it may also be useful to have a CBV review the compiled responses, in addition to counsel, to ensure that the appropriate documents are being provided and that the financial context of the responses is properly understood. Doing so can reduce the likelihood of lengthy follow-up requests and help avoid unnecessary confusion or misinterpretation.

It is also important to remember that disclosure requests are often driven by a need to properly understand the financial picture. While responding can be onerous, providing clear, complete, and thoughtful responses the first time can save time, cost, and frustration down the road, while supporting the goal of informed outcomes for both parties.

Thank you for taking the time to read this series. If there are other topics or questions you would find helpful to explore, please email me at nyla@fkov.ca.