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

When it comes to parties seeking a divorce, it is not uncommon for one party to be unaware of the true extent of their joint finances, that of their spouse or indeed their own. This is often the result of one spouse in the relationship controlling the finances in their entirety. However, while this may work when the couple are together, when the relationship ends, the party that is unaware of the marital finances may feel vulnerable and anxious, unsure as to whether they will receive a fair share of the couple’s assets.

Being in the dark about your finances is not something that should prevent you from bringing divorce proceedings. Fortunately, there are steps within the legal process that allow for a fair and accurate establishment of both parties’ finances. An expert family lawyer will also be able to ensure a true evaluation of the extent of any assets held individually and/or jointly.

It should be highlighted that the division of finances (as well as arrangements regarding any children) are ancillary proceedings to the divorce itself and are dealt with separately.

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?

Where the divorce is proceeding through the courts then it is compulsory for both sides to perform financial disclosure by way of a Form E. It is also possible to use the Form E on a voluntary basis where the divorce is not proceedings through the courts.

Form E requires both sides to give full and frank disclosure in relation to their finances and to provide documentary evidence to support their form, for example, bank and company account statements. This includes both assets held worldwide, in trust and through company structures. Both parties must submit their form simultaneously.

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.