What is the difference between a spousal relationship and a domestic contract?

In submissions, the claimant’s counsel made reference to a variety of cases, including those focusing on agreements arising after separation, which he suggested give rise to the conclusion that spousal relationships are relationships of trust and domestic contracts are contracts uberrimae fidei. The majority of the authorities referenced were separation agreements where, according to Rick v. Brandsema, 2009 SCC 10, at para. 5, spouses have a “duty to make full and honest disclosure” of all relevant financial information.

Reference was also made to Klassen v. Klassen, 2001 BCCA 445, where the court set aside a post-separation commercial transaction providing for the sale of shares awarded to the wife in the matrimonial proceeding to the husband on the basis that the husband, the controlling mind of the business, failed to properly disclose that the worth of the shares far exceeded the purchase price. The shares were never legally transferred to the wife, but became beneficially her property following the matrimonial proceeding. She was never provided with financial information as to the company’s performance during the period of her beneficial ownership so as to properly inform her decision as to the value of them when the husband proposed he pay her for them.