What is financial disclosure during divorce proceedings?

When a marriage breaks down one of the main issues between separating couples is deciding who gets what from the matrimonial pot. During this process both parties need to make a full and frank financial disclosure to each other of their income, assets and liabilities. The earning potential and income needs of both parties will also need to be taken into consideration.

There are different ways to come to a financial settlement including between yourselves, through mediation, using a family solicitor or through the courts. Given the complex nature of ensuring that both of you are provided for into retirement, we would recommend using a family lawyer to ensure that any settlement reached is fair in both the short and the long term.

If the case is going to be decided in court, both parties will have to complete what is known as a Form E. However, we would always recommend completion of Form E on a voluntary basis as it provides a comprehensive picture of a couple’s financial situation.

What is a Form E?

The Form E is a document, sometimes known as a Financial Statement, which is used to detail each party’s income, assets and liabilities, along with earning potential, personal income requirements and those of any children from the marriage.

All declarations must be supported by documentary evidence including for example bank account, mortgage, and investment statements, pension statements and valuations, property valuations, life assurance, any business assets and accounts, pay slips and self-employment accounts. Form E is also used to document earning potential and income needs.

Both parties need to ensure the information is a full and frank disclosure of their financial position and recognise that their duty to provide this information is ongoing in the event of any change of circumstances.

The Questionnaire

Once each party has completed a Form E, a Questionnaire is used to seek and provide further clarification of any issues it has raised. Only when these have been satisfactorily resolved can the true value of the matrimonial pot be decided, along with ways in which it can be split fairly to provide for both parties and their offspring.

The Financial Settlement

Once an agreement has been reached, the financial settlement needs to be turned into a Financial Remedy Order, which makes anything agreed between the two of you legally binding. Without such an order, both parties are left without legal protection for any future financial claims made by an ex-spouse.

If you are struggling with the impact of divorce and separation, we offer a no obligation initial consultation for a fixed fee of £100 (incl. VAT), for up to one hour. At this meeting, we can advise you on all the issues relating to your personal circumstances, allowing you to make informed decisions moving forward.

To book an appointment please call 01444 472700, email us at info@tisshawssolicitors.co.uk or complete the form below.