What is financial disclosure in a divorce? A guide for couples

Understanding financial disclosure in a divorce

Financial disclosure is the process of revealing your financial information to your spouse or civil partner. It provides a complete picture of both parties’ financial situations,  detailing all assets, liabilities, income, expenses and future financial needs (forecasted budgets).

The Financial disclosure process in divorce

The financial statement where you provide details is known as Form E, which needs to be completed by both parties accurately and honestly.

It is mandatory to complete and submit this form when court proceedings have been issued, but is also commonly used for disclosure in voluntary negotiations .

It is a detailed form which, as well as describing  assets, provides further key background information about the parties, the marriage, any children and other factors, such as exceptional contributions one party may assert they have made.  The document is verified by a  a Statement of Truth, and a party who makes a knowingly false statement in the Form E risks being fined and/or imprisoned.

Once completed, it will give both parties, their solicitors and/or the court the relevant information so they know what is effectively in the ‘matrimonial pot.’ This will enable them to make informed and fair decisions about division of assets and any support obligations. Obtaining assistance from an appropriately experienced family law solicitor to ensure that the form is completed correctly and accurately is advisable.

What documents are involved in financial disclosure?

Financial disclosure in divorce proceedings involves a comprehensive overview of both parties’ financial situation, supported by various documents. Both parties will need to provide these. These include property valuations, mortgage statements, bank statements, details of investments, pension statements,  payslips and P60s (or tax returns if self-employed),. You’ll also need to disclose details about any businesses you’re involved in, as well as information about, debts (credit cards etc.), and any inheritances. Additionally information about any valuable vehicles owned, jewellery, art, antiques with current valuations is required.

You may have to produce other documents, in addition to those above, depending on the circumstances of your case.

What happens if financial disclosure is incomplete, refused or assets are hidden?

Jonathan Miller, Senior Solicitor in Alsters Kelley Family: Divorce, Child Contact & Finances Department, said. “Financial disclosure is an essential element in negotiating fair and legally sound financial agreements. The need for accuracy and honesty during financial disclosure is imperative. If one or both parties refuse, or supply incomplete financial information, it can lead to serious legal consequences in divorce proceedings.”

Jonathan continues. “The same is true if either party has hidden assets, which are subsequently discovered. In these instances a court can draw adverse inferences, take corrective actions, like adjusting the original settlement terms, issue variation orders, or impose costs orders or costs, reopen settlements, and even find individuals in contempt of court, potentially leading to fines or even imprisonment.”

Jonathan concludes. “If either spouse refuses financial disclosure, there will be consequences including prolonged divorce proceedings, increased legal costs and potentially the court may assume that by refusing to comply you are likely to be hiding assets. This could lead to an unfavourable settlement for the party that refuses.”

Fixed fee initial meeting for support and advice

To make sure that you get the right settlement, we offer an initial fixed fee appointment with no-obligation, for £360 including VAT where we can help and support you as you go through the financial disclosure process. And thanks to our network of offices covering Coventry, Leamington, Nuneaton, Stratford-upon-Avon and Southam we are very accessible too. For timely and quality advice, support and a fair outcome, please contact Jonathan Miller on 01926 356000, email jonathan.miller@alsterskelley.com.