Divorce or dissolution can be a challenging and emotionally taxing process, and one of the most critical aspects is financial disclosure.

Ensuring transparency and accuracy in disclosing financial information is crucial for a fair settlement and to ensure both parties fully understand the assets held and consequently the impact of any agreement reached. In this article, we provide comprehensive advice on how to handle financial disclosure during divorce or dissolution proceedings, helping you navigate this complex process with confidence and clarity.

What is financial disclosure

Financial disclosure in divorce or dissolution refers to the process by which both parties provide a full and honest account of their financial situation. This includes income, expenses, assets, liabilities, and any other relevant financial details. The purpose is to ensure that both parties have a clear understanding of the marital finances, facilitating an equitable division of assets and responsibilities.

Joanna Farrands

Joanna Farrands

Partner | Family

01483 543223

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Why financial disclosure is essential

Honesty and transparency in financial disclosure are fundamental to achieving a fair divorce or dissolution settlement. Courts require full and frank disclosure to make informed decisions about asset division, spousal maintenance, and child support. Incomplete or inaccurate disclosure can lead to legal complications, delays, and even penalties. It is in both parties’ best interests to approach this process with integrity and thoroughness.

If the parties are considering a financial settlement using mediation, arbitration or direct negotiation, full and frank disclosure will also be required.

A specialist family solicitor will not be able to provide detailed legal advice on the terms of any settlement which has been reached without full and frank disclosure taking place and, equally, parties will not be able to fully understand the consequences of the agreement they are entering into.

Preparing for financial disclosure

Gather relevant documentation

The first step in preparing for financial disclosure is to gather all relevant financial documents. This may include:

  • Bank statements
  • Pay slips
  • Tax returns
  • Mortgage statements
  • Investment portfolio values
  • Business values
  • Loan agreements
  • Credit card statements

Having these documents readily available will facilitate a smoother disclosure process and help ensure accuracy.

Create a comprehensive list of assets and liabilities

Next, create a detailed list of all assets and liabilities. Assets can include properties, vehicles, savings, investments, and personal belongings of significant value. Liabilities encompass any debts such as loans and credit card balances. A mortgage is considered within the context of the value of any property it is attached to, so should not be included in an overall liability figure. This list should be exhaustive to avoid any potential issues during the divorce proceedings.

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The process of financial disclosure

Completing form E

In the UK, financial disclosure is conducted using Form E, a detailed document that requires comprehensive information about your financial situation. This document is long and it is best to discuss it with a specialist family solicitor. Both parties should complete and exchange Form E as part of the disclosure process. This form covers:

  • Personal information
  • Income and expenses
  • Assets and liabilities
  • Pension details
  • Information as to ongoing needs

Exchanging information

Once both parties have completed Form E, the next step is to exchange these forms along with the supporting documents. This exchange ensures that each party has access to the same financial information, promoting transparency and fairness.

Reviewing and verifying information

After exchanging financial disclosure forms, it is crucial to review and verify the information provided by the other party. This may involve cross-referencing the disclosed information with the supporting documents and raising any discrepancies or concerns. It is important to work with a family solicitor during this stage to ensure a thorough and accurate review is undertaken and it is established what else may be required as part of the disclosure process.

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Common challenges in financial disclosure

Incomplete or inaccurate disclosure

One of the most common challenges in financial disclosure is incomplete or inaccurate information. Whether intentional or unintentional, such discrepancies can hinder the divorce or dissolution process and lead to complications and delay. To mitigate this risk, ensure that all financial information is requested from the various providers promptly and then thoroughly reviewed and verified.

Valuation of assets

Valuing certain assets, such as businesses, properties, or unique items, can be complex and contentious. Obtaining professional valuations can help provide an accurate assessment and it is important to seek specialist family law advice on how to approach valuing assets.

Hidden assets

In some cases, one party may attempt to conceal assets. Identifying hidden assets can be challenging, but solicitors and forensic accountants can assist in uncovering any undisclosed financial resources.

The role of solicitors in financial disclosure

Working with an experienced solicitor is invaluable in navigating the financial disclosure process. Solicitors provide expert guidance, ensuring that all necessary information is disclosed accurately and comprehensively.

The importance of full disclosure

Full and frank financial disclosure ensures transparency which fosters trust and fairness, facilitating a smoother and more amicable divorce or dissolution process. It also helps protect both parties’ interests and ensures that the final settlement is just and equitable, meeting the needs of both parties.

How our solicitors can help

Financial disclosure is a critical component of divorce or dissolution proceedings, requiring honesty, thoroughness, and professional guidance. By understanding the process, preparing adequately, and working with a solicitor, you can navigate financial disclosure with confidence and ensure a fair outcome.

At Moore Barlow, we are committed to supporting you through this challenging time, providing expert advice and compassionate service to help you achieve the best possible resolution.

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Helping you through a divorce or separation

Our legal team provides expert advice and representation for couples during the key relationship milestones, helping you navigate the complexities.

Find out more

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