Form E Explained: Financial Disclosure in Divorce

When getting a divorce, it is important to consider the financial issues that arise out of the parties’ separation. Whilst most couples try to reach a financial settlement themselves, couples who are unable to come to an agreement can seek a financial order from the family court.

Once an application for a financial order has been made and financial remedy proceedngs have been initiated, the first step is for both parties to provide full and frank disclosure by completing a document called a Form E. A Form E is also known as the financial statement, as it details the complete financial positions of both parties.

what is a form E?

A Form E is a comprehensive financial statement, detailing each party’s income, assets, liabilities, and expenses to help the family court determine a fair financial settlement. It is often the most detailed and arguably the single most important document produced during an application for a financial remedy.

In financial remedy proceedings, it is mandatory for both parties to complete and file a Form E. There is a filing requirement for the simultaneous exchange of the Form Es, to prevent either party from gaining an advantage over the other.

Although Form Es are most commonly used when a financial order is sought from the family court, they may also be used when both parties agree to provide voluntary financial disclosure. This information is then used to enter into discussions and negotiations with a view to reach a financial settlement. 

If you are considering or going through a divorce and need help with the Form E, Vardags can help. Click below for a free initial consultation with one of our expert divorce solicitors.

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When do I have to complete the form E?

The Form E must be completed and sent to the court and your spouse at least 35 days before the first hearing, which is the First Directions Appointment (FDA). The court office will send you a notice of the first appointment, which will include the date on which Form E must be filed and served.

Failure to comply with the timescales in completing Form E may result in the court making a costs order against you, should the delay prejudice the FDA.

Why is financial disclosure necessary?

Both you and your spouse need to have full financial information before you can agree how your financial arrangements should be separated out, as the law says that the available resources must be split fairly. It is not possible for you, your lawyers or a court to know what will be a fair solution unless everybody knows the full financial picture.

You will have to verify the information in Form E with a statement of truth. Giving untruthful information may be a criminal offence or contempt of court. If a court order is later found to have been based on inaccurate information, the case may be reopened, and the court is able to make a new order. It is important to note that the parties have an ongoing duty to full and frank financial disclosure, from when Forms E are due, up until the final financial order is sealed.

how do i complete a form E?

When filling out the form, you will notice that supporting documents are also required. You will need to consider valuations for properties and expensive items such as cars, artwork, antiques or jewellery. More information on how the court values such assets can be found here.

Section 1 of the form covers basic details such as names, addresses, information about the marriage or civil partnership and matters relating to children such as arrangements and child maintenance payments.

Section 2 covers the bulk of the form, concerning your present financial circumstances. This includes documentation for:

• All property you own, either jointly or in your own name – including evidence such as mortgage statements and its approximate value.
• Statements for the last 12 months of all your bank and building society accounts.
• The current value of any investments in your name,
• The details of life insurance policies and their surrender values.
• The details of all monies that are owed to you.
• The details of any cash you have, in any currency, over £500.
• The details of any personal belongings you have over £500.
• The details of any debts, such as credit cards and bank loans.
• Any actual or potential capital gains tax liabilities, for example on investment property or shares.
• Business assets.
• Pension valuations.
• The details of income – including earned and self-employed income.
• The details of any interests you have under a trust or any imminent inheritances.

Section 3 sets out what you need in terms of income and capital for the future. The income section requires you to prepare a future monthly budget to ascertain monthly spending and the amount required to live on. The two sub-sections are: one for you and your household, and one for any children living with you. This is a section that is a source of disagreement in many cases and therefore needs to be completed with care.

Section 4 requires you to explain any recent or imminent changes in your assets, detail your contributions to the marriage or civil partnership, the standard of living enjoyed and any other relevant circumstances – to obtain a complete picture of your individual situation. If you have remarried or are living with a new partner, you will also need to give details of your spouse or partner’s assets and income so far as you know them.

Section 5 asks what orders you are asking the court to make. This section will be advised by your lawyer.

Finally, the statement of truth must be signed – either by you or by your lawyer.

what do I need to disclose in my form e?

You have a duty to the court to fully disclose all your finances and other relevant circumstances in this form. Do not try to conceal assets, as failure to provide full and accurate disclosure may result in any order issued by the court being set aside at a later date. If you are found to have been deliberately untruthful, your credibility will suffer, and you may face criminal charges under the Fraud Act 2006.

When filling out the form, you will notice that supporting documents are also required. These are listed in grey boxes at the beginning of each section. For most people, it will entail providing a year’s worth of bank statements for any bank account held in your sole name, jointly, or where you are a nominee or beneficiary, proof of employment income via a P60 for the previous year along with your last three payslips, or proof of self-employment income via last year’s tax return or accounts. Depending on your other assets, you will also be required to provide current balances or valuations.

Guidance on the individual parts of the Form E can be found below:

• Disclosing bank accounts in Form E

• Disclosing business interests in Form E
• Disclosing Capital Gains Tax in Form E
• Disclosing cash sums and personal belongings in Form E
• Disclosing debts in Form E
• Disclosing income in Form E
• Disclosing investments in Form E
• Disclosing life insurance policies in Form E
• Disclosing monies owed to you in Form E
• Disclosing needs in Form E
• Disclosing other assets in Form E
• Disclosing other properties in Form E
• Disclosing pensions in Form E
• Disclosing the family home in Form E

• What goes in the Order Sought section of Form E?

• What goes in the Other Information section of Form E?