The Guardian newspaper recently published an article stating that thousands of couples may have to reopen negotiations because a critical fault has been found in software used to calculate financial information.
The form known as ‘Form E’ is the form used by parties to disclose financial assets and income in matrimonial matters. The issue relates to one of the final pages of that form, which totals various groups of assets. It is also designed to produce a net asset figure by deducting any liabilities the party has. The problem is that there have been examples of errors caused by significant liabilities not being deducted correctly, which has the effect of overinflating a party’s asset figure. This error has apparently affected cases using Form E over the last 20 months.
It is likely that this issue will mostly affect litigants in person i.e. those who did not have any legal representation when dealing with their divorce. Those who have had legal representation will have had their Form E reviewed and checked by their own lawyer and probably their spouse’s lawyer.
It is highly likely that the parties’ lawyers will have noticed any errors such as this that have occurred under the automated system.
Most lawyers also draw up a separation summary set out in the Form E of all assets and liabilities called a ‘Schedule of Assets and Liabilities’. This is frequently used by lawyers during negotiations and any errors in the Form E calculations will be identified through the preparation of the summary Schedule of Assets.
However, should anyone have concerns regarding any settlements following the use of Form E over the last 20 months, they should in the first instance contact the lawyer that they previously used. Those who did not have legal representation should be encouraged to seek legal advice at the earliest opportunity to check their settlement.
For any help and advice from the Family team at Alsters Kelley LLP, please contact Erica Kemp at erica.kemp@alsterskelley.com or 01926 356047.
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