“As discussed, the issue of focus at trial was whether the husband had complied with his financial disclosure obligation under s. 56(4)(a). In Patrick v. Patrick, [2002] O.J. No. 639, 112 A.C.W.S. (3d) 302 (S.C.J.), the husband failed to disclose either the existence or value of his RRSPs prior to entering into a marriage contract. At trial, the husband argued that his failure to disclose was immaterial, since the RRSPs were not to be shared at any time, regardless of their value. Mesbur J. rejected this argument, noting at para. 53 that “[p]arties are, therefore, not even permitted to contract out of the obligation to disclose” and ordered that the contract be set aside for failure to make financial disclosure in accordance with s. 56(4)(a). In reaching this conclusion, at para. 52 the trial judge emphasized the importance of ensuring that parties have a full understanding of their rights before entering into such contracts:
Marriage contracts are a device by which parties can opt out
of most or part of the Family Law Act, its property
provisions, its support provisions, or both. Fundamental to a
choice to opt out of the legislative scheme is a clear
understanding of what one’s rights and obligations might be
if there were no marriage contract. It is in this context
that financial disclosure is critical.
This view is reinforced in Dubin v. Dubin, [2003] O.J No. 547, 2003 CanLII 2103 (ON SC), 34 R.F.L. (5th) 227 (S.C.J.), at para. 32:
. . . knowing assets and liabilities at the date of the
agreement is fundamental to an eventual calculation of net
family property. A party needs to know what asset base might
potentially grow, in order to determine what he or she is
being asked to give up in the agreement. Coupled with
financial disclosure is the notion of understanding legal
rights and obligations under the legislative scheme. This
second notion carries with it the concept of independent
legal advice. Thus, a party must know what assets and
liabilities exist at the date of the contract, and must
understand the general legislative scheme in order to know
what he or she is giving up in the proposed agreement.”