Disclosing debts in Form E

what is a form e?

The Form E is a crucial document in divorce proceedings, providing a detailed account of each party’s finances. Both you and your ex-spouse are obligated to provide full and frank disclosure of your financial positions in the form and failing to do so can result in severe repercussions.

disclosing your debts 

During financial disclosure, not only are debts included but they can be just as contentious as the division of assets. Like assets, much will depend on how a debt is classed - whether it is matrimonial or a spouse’s sole responsibility.

Information on debts, or liabilities as the law calls them, are covered in Section 2 of Part 2 of the Form E.

You must list all debts you have apart from mortgages and any overdrawn bank building society or national savings accounts. You need to include money owed on credit cards and store cards, bank loans and hire purchase agreements (credit agreements). If you have a joint liability you will need to give the names of the other account holders.

As well as providing information on the debts, you must also supply 12 months of statements of your liabilities.

The court generally views debts in joint names as shared responsibilities, while debts in sole names are considered the responsibility of the named spouse. However, if a debt was incurred during the marriage for the benefit and support of the family, the court is likely to treat it as a shared debt.

Although the court cannot transfer a debt into someone else’s name, it can allocate money or property in a way that facilitates the payment of the debt. Therefore, it is crucial to seek specialist legal advice if you have complex debts in your situation.

the consequences of financial non-disclosure

If a party fails to provide accurate disclosure or conceals assets, the court may later set aside the order and require them to cover the other party’s costs. In severe cases of deliberate dishonesty, this could result in criminal charges under the Fraud Act 2006.

If you are going through a divorce and debts are involved, Vardags can help. Click below for a free initial consultation with one of our expert divorce solicitors.

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