I am often asked, “What finances do I have to disclose in my divorce?” or “Do I really have to disclose such and such?” when dealing with the finances of separating parties.

The starting requirement is the duty of full and frank financial disclosure which means that one must honestly disclose all of their financial information, the objective being full transparency to enable a fair division and assessment of needs. This is an ongoing requirement in both non- Court negotiations and Court proceedings. This means that financial positions must be updated if circumstances change such as a lottery win or receipt of an inheritance.   

What is required?

The template document for financial disclosure is a Financial Statement, otherwise known as a Form E. This is a rather formidable at first glance document consisting of 28 pages which requires a signed Statement of Truth confirming that the disclosures made therein are full, frank, clear and accurate.        

The Form E is split into sections which include the following: -     

1. Income
   • Employment income (salary, bonuses, overtime)
   • Self-employment or partnership income
   • Dividends and investment income
   • Rental income
   • Pensions in payment
   • State benefits

2. Capital assets
   • Property in the UK or abroad
   • Bank and savings accounts
   • ISAs, shares, bonds, crypto assets
   • Business interests and shareholdings
   • Trust interests (even if discretionary)
   • Valuable items (cars, jewellery, art)

3. Pensions
   • Workplace and private pensions
   • State pension forecasts
   • Overseas pensions

4. Liabilities
   • Mortgages and secured loans
   • Credit cards and overdrafts
   • Tax liabilities
   • Business debt and guarantees
   • Other debts such as family or other loans
5. Pensions
   • Workplace and private pensions
   • State pension forecasts
   • Overseas pensions

6. Financial resources
   • Trust benefits or likely distributions
   • Family support or loans
   • Prospective inheritances (if more than speculative)

7. Past dealings
   • Significant gifts or transfers
   • Disposals or sales of assets
   • Any dissipation, attempt to hide or undervalue assets

Why is full and frank disclosure important?

It enables there to be a fair division of assets taking into account all of the issues. 

What happens if there is a failure to provide full and frank disclosure

This can result in:

• Loss of credibility
• Cost Orders being made by a Court
• Adverse findings being made by a Court
• Add backs (assets or their value being added back in for division)   
• An Order being varied or set aside after the event
• Contempt of Court findings and sanctions 

In summing up, non -disclose at your peril.    

We routinely assist in the preparation of Form Es and we have experience in setting aside and varying Orders in non-disclosure cases.  If we can help, please contact us         

Consultation

If you are considering mediation, or require any assistance in respect of divorce, separation, financial or children matters, John Hodge Solicitors can offer a free initial consultation to discuss matters. The consultation can be held in person, over the phone or online to suit your needs.

Free initial consultations are subject to internal checks and availability.

Next Steps: Get in touch

If you would like to discuss your Family matter then please don’t hesitate to reach out to our team of legal experts at John Hodge Solicitors, conveniently located throughout the South West, with offices in Bridgwater, Bristol, Clevedon, Wedmore, Weston-super-Mare and Yatton.

You can contact us either:

• by email
• via our website
• by calling us on 0800 097 8611