Disclosing income in Form E

In divorce proceedings in England and Wales, parties must provide full disclosure of their financial resources in a document called a Form E. This includes detailing all sources of income, such as income from employment, self-employment, investments, benefits, and other sources. Supporting documents like payslips, tax assessments, and management accounts must also be provided.

why is financial disclosure needed?

While most couples try to reach a financial settlement themselves, many are unable to come to an agreement and will need to apply to the court for a financial order. In contested financial remedy proceedings, the court will aim to provide a fair financial settlement. It cannot do so unless there is complete transparency as to each party’s financial position. This should be provided in the Form E.

what income needs to be disclosed in the form e?

Parts 6 to 10 of the Form E gathers income information – from employment and self-employment to pensions and any other income such as rental income from investments and state benefits.

Income earned from employment:

Question 2.15 covers any income you receive from employment. You will need to include your net income, and any other financial benefits, such as bonuses, car allowances and expenses.

For this section, you must provide documentation including your P60 for the last financial year, your last three payslip and your last Form P11D if you have been issued with one.

If you believe that this information is likely to change significantly, you will have the chance later on in the form to explain why.

Income from self-employment or partnership:

Question 2.16 asks for details on any income from self-employment or business partnerships.

You will have already given details of your business and provided the last two years of accounts in section 2.11, and in this section you are required to provide details on your income from the business and any other financial benefits such as bonuses, car allowances and expenses.

You must provide a copy of last tax assessment or if this is not available, a letter from your accountant confirming tax liability. Additionally, if your net income from the last financial year and estimated net income for next 12 months is significantly different, a copy of management accounts for the period since last account is also required.

Income derived from investments e.g. dividends, interest or rental income:

Question 2.17 asks for details on income you get from investments and rental income in the last financial year. You must provide information on the income received in last financial year, your estimate for the current financial year and whether income was paid gross or net of income tax.

Income from state benefits including state pension and child benefit:

Question 2.18 asks for details on any kinds of benefits you currently receive or are estimating to receive in the 12 months ahead.

You need to detail the name of the benefit, the amount paid and the frequency of the payments. If you do not receive any benefits, you can leave this section blank.

any other income:

Question 2.19 asks for you to detail any income that you have not disclosed in the previous sections, that you have received in the last 12 months or that you are expecting to receive in the next 12 months.

the importance of providing full disclosure

Form E is a crucial document that must be as up to date and accurate as possible. It forms the basis of your financial evidence, and if there is a final hearing, you may be cross-examined on its contents. Therefore, it is essential that the information provided is true and accurate to the best of your knowledge and belief.

The court can impose penalties for non-disclosure, if your disclosure is incomplete by the appropriate date or if you fail to provide adequate 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.

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