Disclosure refers to sharing financial information between both parents to calculate child support accurately. The Long Disclosure and Short Disclosure options offer flexibility depending on the complexity of the financial situation and the level of detail required for the child support calculation.

Short Disclosure

Short Disclosure is a streamlined approach, used when both parents have straightforward financial situations and are in agreement about income and expenses. This option focuses on sharing essential documents, like recent pay stubs or tax returns, without going into extensive detail about assets or less common income sources.

Why It Matters:

• Short Disclosure works well for situations where parents have regular, easily verifiable incomes (such as salaried employees) and simple financial structures.
• It saves time and avoids unnecessary complexity, making it ideal for amicable situations where there is trust between the parties.

What It Includes:

• Basic income information (e.g., recent tax returns, pay stubs)
• Minimal documentation about assets or liabilities, unless directly relevant to child support
• Limited focus on Section 7 expenses (only basic or recurring costs)

When to Use:

• When both parents have straightforward income sources (e.g., salaried employment) and agree on the basics of child support.
• When parents trust each other and want a faster, less invasive process.
• Use this option when a simpler agreement is possible without complicating factors like self-employment, fluctuating income, or complex financial assets.

Long Disclosure

Long Disclosure is a more thorough approach, requiring detailed financial information from both parents. This option is necessary when financial situations are more complex, such as cases involving self-employment, significant assets, or fluctuating incomes.

Why It Matters:

• Long Disclosure ensures that all relevant financial information is accounted for, particularly in cases where the standard income documentation doesn’t fully capture a parent’s financial situation.
• It helps prevent future disputes by offering a complete picture of both parents’ financial resources.

What It Includes:

• Full income documentation (e.g., multiple years of tax returns, profit and loss statements for business owners, proof of bonuses or commissions)
• Disclosure of all significant assets (e.g., property, investments, savings)
• Detailed documentation of Section 7 expenses and any anticipated extraordinary costs (e.g., medical or educational expenses)

When to Use:

• When one or both parents have more complex financial situations, such as self-employment, variable income (e.g., commission-based), or multiple income sources.
• When there are significant assets involved (e.g., property, investments) that need to be considered in the child support calculation.
• In cases where trust is an issue, or one parent wants reassurance that the other’s financial resources are fully disclosed and accounted for.

Practical Considerations for Mediators

Short Disclosure:

• Time Efficiency: Short Disclosure speeds up the process and is less intrusive, which can make it appealing to parents who have a good relationship and just want to get through the agreement efficiently.
• Risk of Missing Information: Because it focuses on the basics, there’s a risk that some financial details might be missed, leading to problems later if one parent’s financial situation is more complex than initially thought.

Guidance for Mediators:

• Recommend Short Disclosure when both parents have a solid understanding of each other’s finances and agree on the basics of child support.
• Advise parents that this option is best for straightforward cases, but could be revisited if circumstances change.

Long Disclosure:

• Thoroughness and Accuracy: Long Disclosure provides a complete financial picture, making it less likely that critical details will be missed. It’s particularly important in complex financial situations or when there’s a history of mistrust between parents.
• Time and Complexity: It takes more time and effort, as both parties will need to gather more detailed financial documents. However, this extra effort can prevent future disputes.

Guidance for Mediators:

• Recommend Long Disclosure in cases where parents have complex finances or there are significant differences in income.
• Explain that this option offers greater accuracy and peace of mind, especially when one parent is concerned that the other may be withholding financial information.

When to Recommend Short vs. Long Disclosure:

1. Short Disclosure is ideal when:

   • Both parents have simple, predictable income (e.g., regular salary).
   • There’s mutual trust between the parents.
   • Both parents agree on the child support calculation and there’s no need to dig deeper into finances.

2. Long Disclosure is recommended when:

   • The financial situation is more complex (e.g., business owners, commission-based work, large investments).
   • There are significant assets or liabilities that need to be considered in the child support agreement.
   • There’s a lack of trust, or one parent suspects the other might not be fully transparent about their financial situation.

Conclusion

Both Long and Short Disclosure options have their place in child support discussions. Short Disclosure is efficient and simple but works best when there’s a high level of trust and straightforward finances. Long Disclosure provides thoroughness and accuracy, especially in more complex situations, but requires more time and effort.

As a mediator, you can help guide parents to choose the best option based on their financial situation and level of trust, ensuring the child support agreement is both fair and appropriate.