Patrick D. Schmidt

The appellant husband appealed an interlocutory order requiring disclosure of income tax returns and a sworn financial statement in the context of a motion to set aside a 2015 separation agreement that capped his income for support calculations at $1 million per year and included a non-disclosure clause.

The respondent wife moved to quash the appeal, arguing the order was interlocutory and required leave to appeal to the Divisional Court.

The Court of Appeal held that the order was interlocutory because it did not finally determine the substantive issue of the separation agreement's enforceability, but rather was a procedural disclosure order.

The appeal was quashed and costs were awarded to the respondent.

The applicant brought a motion for a penalty following a previous finding that the respondent was in contempt for breaching various court orders, including failing to provide financial disclosure.

Although the respondent had since provided most of the required disclosure after retaining new counsel, he had also transferred over $53,000 from the sale of a property to his new wife in violation of a court order.

The court found that while the respondent had significantly complied with disclosure orders, his unauthorized transfer of funds warranted a penalty.

The court ordered the respondent to pay a $10,000 fine and a $5,000 penalty to the applicant, but declined to strike his pleadings given his recent efforts to comply and his proposal to pay arrears from the proceeds of a property sale.