In a UK divorce, financial disclosure refers to the process of listing and exchanging full information about both parties’ assets, including income, savings, property, pensions, investments, and liabilities. Both parties to the divorce have a legal duty to make full, frank and clear financial disclosure to ensure that a fair divorce financial settlement can be reached. This information is typically provided by completing the official Form E. Without proper financial disclosure, there is a possibility that the non-disclosing party will face serious legal and financial consequences.
What do you need to disclose?
When making a full and frank disclosure of your financial assets, you must provide details of any:
- Real property – the family home and any other properties owned by the parties
- Bank and building society – showing the value of your savings
- Investments – e.g. shares, ISAs, bonds, stocks, National Savings and Investments, unit trusts, investments trusts, and gilts. For each investment, you will also need to provide the size of your holding, the percentage of interest, and its current value.
- Life insurance – the name of the insurance company, policy number, type of policy, sum assured, premiums payable, and the maturity date.
- Loan – the loan provider and the amount owed
- Business interests – the name of the business, type of interest in the business, and the balance on the most recent accounts
- Personal possessions – an estimated value of any possessions with significant value (i.e. over £500)
- Pension – including the name of the provider, the type of pension and policy details
- Trusts – if you have an interest in a trust, it is important to provide details of these
- Income – i.e. from salary, partnerships, dividends, self-employment etc, and
- International assets – such as property, trusts, possessions etc.
Can you refuse financial disclosure?
You cannot refuse to provide financial disclosure in a UK divorce if you are involved in court proceedings for a financial order. Both parties are legally required to give full and frank disclosure of their financial circumstances. If you refuse to provide disclosure, the court can compel you to comply. Failing to do so may be considered contempt of court. Possible consequences of refusing financial disclosure include:
- In serious cases, penalties such as fines or imprisonment
- A legal costs order being made against the non-disclosing party
- Increased suspicion of hidden assets, which may lead the court to appoint a forensic accountant or award a greater share of assets to the other party
- Freezing of assets to prevent dissipation
If your ex-spouse refuses to provide full financial disclosure, or you suspect they have not done so, it’s important to raise your concerns with a divorce solicitor as early as possible. They can advise on the most appropriate course of action, which may include mediation, applying for a freezing order, or instructing a forensic accountant to investigate. It may also be necessary to ask the court to compel your ex-spouse to provide financial disclosure. If they fail to comply they will face serious legal consequences for their actions.
Types of financial disclosure
There are different types of financial disclosure, including:
- Voluntary full disclosure
- Court-ordered full disclosure
- Basic disclosure
Voluntary full disclosure
At the outset of your matter, you may be invited to provide a voluntary disclosure of all your assets using the Form E template. This process is normally used when both parties are working amicably through their solicitors to reach a divorce financial settlement. Voluntary disclosure means the parties involved provide the details needed willingly and openly without being compelled by a court to do so.
Court-ordered full disclosure
If you and your ex cannot reach an agreement on your financial matters and want to proceed with financial remedy proceedings for financial orders, the court will order both parties to complete and exchange Form E for a full and frank financial disclosure. It is a mandatory requirement once the financial proceedings begin.
Basic disclosure
If you and your ex already agree on financial matters and only need to apply for a Consent Order to make it legally binding, you may only need to provide basic disclosure by using D81 Statement of Information. This form provides a snapshot of each party’s financial position both before and after the proposed settlement. Form D81 is shorter and less detailed than Form E, but it must still accurately reflect financial circumstances and settlement impact.
How to undertake financial disclosure
How to complete a financial disclosure depends on the type of disclosure required in your case. In most situations involving full financial disclosure, both parties are typically required to complete a Form E Financial Statement. This form is specifically designed to collect comprehensive details about each person’s financial position. We recommend reviewing the form in advance to understand the information you’ll need to gather. The general process for full and frank financial disclosure during court proceedings includes:
- Submitting a financial order application to the court
- The court ordering both parties to provide full financial disclosure by completing Form E
- Completing Form E
- Attaching supporting documents (e.g., bank statements, payslips, P60 or tax returns, mortgage statements, etc.)
- Exchanging Form E with the other party
If your case involves complex assets, it is advisable to consult a divorce lawyer for tailored guidance.
Frequently asked questions about financial disclosure
Do I have to disclose my new partner’s assets in my divorce financial disclosure?
It is recommended to include some relevant details of your new partner’s finances when making a financial disclosure, especially if they’re financially linked to your living situation or household. You do not need to provide a full breakdown of their finances, however. We recommend only providing details of assets that will impact your living arrangements (e.g. do they own their own home). It is important to understand that this does not mean these will be shared with your ex-partner. Rather, this information will be used to determine your level of financial need and the resources available to you, which may alter the division of marital assets. Ultimately, the court will not penalise you for providing extra information and will disregard what is not relevant.
What can I do if I think my ex-spouse is hiding assets in financial disclosure?
It is recommended to speak to a divorce solicitor, who will assess the situation and recommend what to do next. Your Solicitor may write to your ex-partner explaining the importance of providing full disclosure. Other steps include mediation, asking the court to compel them to provide financial disclosure, and instructing a forensic accountant to review the matter.
What happens after financial disclosure in divorce?
Information provided during financial disclosure is used to determine how marital assets should be divided between the divorcing couple. This can be done between the couple directly, with the help of a solicitor, through mediation, or with the help of a family court judge. Depending on the financial resources and needs of both parties and whether there are children involved, it may be necessary to consider how non-marital assets are included (e.g. inheritances and property owned before the marriage).
Can I divorce without financial disclosure?
Technically, yes, you can divorce without financial disclosure because the legal process of divorce is separate from that of reaching a divorce financial settlement. However, you are legally required to provide full and frank financial disclosure so that you can reach a settlement. As such, it is never advisable to refuse to provide full disclosure, as doing so may result in serious consequences such as a fine, imprisonment, and receiving a smaller portion of the marital pot.
