What is financial disclosure in divorce?

The division of marital assets is often the most contentious part of a divorce. While the process can be relatively straightforward in some cases, it becomes highly intricate for couples with complex financial portfolios. 

All parties in a divorce owe an ongoing duty of full and frank disclosure. This means that they must provide all the information that they can about their assets and income and this disclosure is then used as a transparent starting point in fair settlement negotiations. If they refuse or fail to do this, the consequences are very serious. 

Financial disclosure includes assets, liabilities, and expected budgets. This includes: 

• Current and anticipated future income from all sources 

• Future expenditure based on what you can reasonably forecast 

• Current assets and liabilities, such as properties, credit card debts and pensions 

• Provision of evidence by documentation that will allow each party to verify the other side’s disclosure 

HOW IS Financial DISCLOSURE ACHIEVED? 

Where there has been an application for a financial order in divorce proceedings, each party must go through the process of completing a document called a ‘Form E’. This is a comprehensive document, similar to a questionnaire in which each party sets out full details about their finances. Documents to evidence this are attached along with the form, these include bank statements, evidence of your investments, property valuations and pension statements, along with documentary evidence such as P60s, payslips, tax returns and company accounts. 

This thorough documentation often aids in the identification of any assets that were not explicitly stated in the Form E. For example, bank statements may show funds transferred to an undisclosed account or income from the sale of a matrimonial asset. 

When Forms E are exchanged, the parties and their legal representatives can properly examine the disclosures. They can submit questions that address any issues raised by the papers. These questionnaires, filed during financial remedy processes, are not intended to be "fishing expeditions"; rather, their objective is to request any missing and genuinely relevant information. 

Vardags’ team of top divorce lawyers delivers a bespoke legal service to HNW and UHNW individuals, their families, and businesses.  

We are the only family law firm with an in-house Financial Forensics department. Our team specialises in identifying, tracing, valuing, and forensically reviewing assets, including businesses, property, and investments. 

If you are a high-net-worth individual going through or considering a divorce, it is crucial to have an accurate valuation of all your spouse’s assets. Whether these assets are held in complex international trusts, hidden within investment portfolios, or concealed through intricate share structures, they must be identified and considered for a fair settlement. 

If you’re considering or going through a divorce and suspect that you may need a specialist financial forensics team on your case, we can help. Click below for a free initial consultation with one of our expert divorce solicitors. 

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Related reads:

• Vardags | Financial Disclosure Process Guide - Top Divorce Lawyers