‘Liabilities’ refers to the financial obligations a person or company has, which includes debts and other incurred expenses.
Parties must provide full and frank disclosure in their Form E, including all liabilities. For many, common liabilities will typically include mortgages, credit card debts, bank loans, and car finance. Such disclosure is essential in providing the court with a clear picture of the parties’ financial circumstances. They will consider any liabilities when determining a financial settlement, but their treatment of them will depend on what kind of liability it is. For example, the court generally distinguishes between ‘hard’ and ‘soft’ loans.
To determine the value of the liabilities owed by a party, sufficient information as to the debts and expenses incurred is crucial. A simple calculation totalling such liabilities will then be undertaken.
Vardags has years of expertise obtaining and defending valuations of various assets and liabilities. If you are considering or going through a divorce and require a valuation, contact Vardags today for a free initial consultation with one of our expert divorce solicitors.
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