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How do divorce and financial disclosure work?
The financial disclosure process provides the other party with information regarding their financial circumstances and evidence to support them.
It is often facilitated by completing Form E (view a Form E here), the document the court will direct the parties to complete if an application is made for a judge to determine how their assets should be divided.
Although it derives from the court process, Form E is commonly used when the parties are trying to reach an agreement, whether directly with each other, through mediation or solicitors.
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What information does divorce financial disclosure Form E include?
Divorce financial disclosure Form E may include information on the following, together with supporting documentation:
- Property values
- Mortgage balances
- Bank account balances
- Savings, investments, or other such account balances
- Liabilities
- Income
- Business values
- Pension cash equivalent values
Once Form E has been completed (with all relevant supporting documents attached), it is exchanged (preferably simultaneously) with the other party.
Each party then has an opportunity to consider the details provided and, should they wish, ask for further evidence or clarification.
The intention is to ensure that
(a) the parties believe they have all the information they need to understand the other’s financial circumstances and
(b) there are no hidden assets or otherwise suspicious transactions.
For more information, read the dos and don’ts of how to complete a Form E here. If you feel comfortable sourcing and filling out forms yourself, consult with local divorce solicitors for help.
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Other financial disclosure statement divorce considerations
There are other elements of financial disclosure that are worth considering.
These include:
- The value of assets: If there are assets of significance, but the value is disputed, an expert will need to be instructed. This can include surveyors to value property, chartered accountants to value businesses, or actuaries to assist in valuing pensions.
- The mortgage capability of both parties: It is important to understand how much each party can borrow on a mortgage to rehouse themselves in the future. Each party should speak to a mortgage broker who can then write to confirm the details regarding their maximum borrowing capacity.
- The parties’ reasonable housing needs: To determine what each parties’ reasonable housing needs are likely to be, they should each provide particulars for properties on the market for sale that they believe would be suitable for themselves and the other.
If both parties are satisfied with the information, they can negotiate a fair and reasonable divorce settlement. If or when an agreement is reached, this should be formalised into a document known as a consent order, which is then sent to the court. Consult with your respective family law solicitors to arrange this.
The court will review the agreement and, providing it is considered reasonable and fair, will formally approve the order.
Once a consent order is approved, it offers the parties security and certainty in how the assets will be divided and that their agreement is enforceable.
What happens after financial disclosure in divorce?
Without financial disclosure, you cannot be sure of your ex-partner’s/spouse’s assets. This is crucial because the law in this area is discretionary, so that different financial circumstances lead to differing financial outcomes.
If you do not know the correct financial circumstances, you cannot be sure that the agreement you have reached is fair.
Full and frank disclosure enables both parties’ divorce solicitors to have a clear picture of the financial assets in a marriage, assess the circumstances, and then advise as to the correct way a court is likely to approach a division of assets.
While there are several methods of avoiding financial disclosure, people rarely ‘get away’ with doing so. Your partner’s solicitor, and the court/appointed ADR third party, are more than familiar with the typical ways of avoiding financial disclosure.
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What our clients say
Stowe Family Law provided professional support and direction during a difficult and contentious divorce proceeding, involving court settlements for financial and child custody elements. Despite demanding court deadlines and some challenges associated with exchanges between solicitors, Kate (and the Stowe Family Law team) was always able to meet deadlines and even contacted me outside of normal working hours when swift communication and action was required. I found Kate’s review and crafting of legal documents to be very helpful. Kate was able to recommend and co-ordinate with a very competent barrister to represent me during the court appearances and supported those interactions herself during those times. Although going through a divorce can be an incredibly sad and harrowing time, the legal services that were afforded by Kate did aid in making me feel supported and professionally guided during the overall process.
Stowe Family Law is a well-regarded national firm with a strong regional presence in and around Birmingham, providing high quality advice and representation in complex and high value financial remedy cases’.
Having recently completed Financial Remedy proceedings through Stowe Family Law, I have no hesitation in recommending Jennifer Reddy. Jennifer made the potentially unwieldy legal process considerably less difficult. Her helpful and professional advice meant that I always had a clear understanding of the options available to me, and her support in preparing for my hearing allowed me to feel confident when I went into court. Thanks to Jennifer’s knowledge and guidance, the outcome of my case was far better than I had ever thought possible.
I was put in touch with Matthew (Matt) Taylor to assist me with my recent divorce matters. My case was far from straightforward and was contested by the other side at all levels: cohabitation duration, pre-acquired assets and marital assets in two countries. Matt was extremely helpful, responsive and proactive throughout the entire process, which was a long challenging one for me. Matt made it as easy and as smooth as possible with his professional and understanding approach. He explained everything to me in-depth, each step of the way, allowing me to completely understand what options I had. Matt always had my best interest in mind and was efficiency-driven throughout, making the process as time and cost-efficient as possible. Thank you, Matt, I would not have made it through the process without your professional help and personal touch.
Throughout my whole legal process Shanika Varga-Haynes has been brilliant and professional. She has always taken care of matters quickly and translated all legal terms into "normal" language for me. I have been impressed to see how Shanika has managed to handle my husband, who fought the process at every step. She dealt with my domestic violence and divorce matters with confidence and drive to move things forward. I have been lucky to have her on my side, which meant that I had a happy ending. I cannot thank her enough and would highly recommend her.
I have been working with Mira for around 2 years to finalise my divorce financial settlement. It has been a very difficult time for me personally so it proved reassuring to know Stowe and Mira were handling it on my behalf.
They have been both professional and prompt in our correspondence and meetings. I would recommend them to friends which I believe is the true measure of a company.
When experiencing maintenance issues after my divorce Shanika Varga helped me in resolving these issues. She provided a very clear explanation of how to go forward and was very efficient in the whole process of dealing with the situation which brought me to an agreeable result. Shanika was very approachable, kind and caring and I would recommend her to others.
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