I want to get divorced but I don't know what our finances are

When parties seek a divorce, it is not uncommon for one spouse to be unaware of the true extent of their joint finances, their spouse’s finances, or even their own. This often occurs when one spouse controls the finances entirely. While this arrangement may work during the marriage, it can leave the uninformed spouse feeling vulnerable and anxious when the relationship ends, unsure if they will receive a fair share of the couple’s assets.

Being unaware of your finances should not prevent you from initiating divorce proceedings. Fortunately, the legal process includes steps to ensure a fair and accurate assessment of both parties’ finances. An expert family lawyer can help ensure a true evaluation of any assets held individually or jointly.

It’s important to note that the division of finances, as well as arrangements regarding any children, are ancillary proceedings to the divorce itself and are handled separately.

If you are considering or going through divorce, contact Vardags today for a free initial consultation with one of our expert divorce solicitors. 

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How do I establish what my finances are?

The court will aim to ensure a fair division of assets. In order to ensure that this can happen, it is vital to determine all the relevant assets under consideration.

Determining and listing any assets you hold solely or jointly

Write down a list regarding all of the assets in your name that you are aware of. Assets for these purposes can include:

• Bank accounts
• Investments such as ISA’s or stocks and shares
• Property including the family home
• Pensions
• Any valuable chattels such as jewellery, cars, antiques etc.

This information will be useful to provide to your solicitor when you begin the process of divorce and will assist with preparing an initial picture of your own finances.

Sourcing the documentation for any assets you hold solely or jointly

It is also advisable to gather together any documents you may hold in respect of assets held either in your sole, or joint, name, such as:

• Bank statements
• Share certificates
• Pension statements.

It is important that, in sourcing such documentation, you follow the Imerman Guidelines. This means you ought not to take, or copy, any documents belong solely to your spouse – this is not permitted and may result in criminal and/or civil sanction.

Carrying out a search

Your solicitor can then carry out their own search to establish potential assets held in your name. This can include searches on Companies House to establish any shares or rights you might have in a company, and Land Registry for any ownership/rights you might have in property.

How do I establish what my spouse’s finances are?

To ensure there is a fair division of assets it is necessary to understand your own financial situation as well as that of your spouse. You should collate any information that you have on their assets. It is an important first step to comb through any knowledge or recollection you have of your spouse’s business(es) or income. Nevertheless, it is not fatal to your case if you are otherwise unaware of these facts. A financial forensic team can perform comprehensive searches with respect to the potential assets and earnings of your spouse.

How can I get more detailed information on our finances?

When a divorce case goes to court, the first step is for both parties to provide full and frank financial disclosure by completing a document called Form E, also known as the financial statement. Financial disclosure involves giving your spouse and the court complete details of your financial circumstances, future needs, and resources.

Form E is a comprehensive document, often the most detailed and arguably the single most important document produced during an application for a financial remedy. There is a requirement for the simultaneous exchange of Form E’s to prevent either party from gaining an advantage over the other.

Both sides then have the opportunity to prepare a list of questions (known as the questionnaire), requesting further information wherever you can see gaps or inconsistencies. This can be lengthy if finances are complicated or initial disclosure was incomplete. Following this, there will then be the first court hearing, which is known as a First Directions Hearing.

Failure to comply with these disclosure requirements can be taken into account in the ultimate financial award, with breach also being punishable with costs orders or imprisonment for repeat refusals.

While Form E is most commonly used during court proceedings, it can also be used when both parties agree to provide voluntary disclosure. This information is then used to enter into discussions and negotiations to reach a financial settlement. These discussions can take place between solicitors, through mediation, collaborative law, or arbitration.