Separating from your spouse is rarely straightforward, and working out how to divide your finances fairly can feel like one of the most daunting aspects of divorce. While many people immediately want to know “what will I get?”, there’s an essential step that must come first: full and frank financial disclosure.
Understanding full and frank financial disclosure
Financial disclosure is the process where both parties in a divorce provide full, honest details about their financial circumstances. This means disclosing everything: what you earn, what you own, what you owe, and what you’ll need financially in the future.
In England and Wales, both spouses should provide full and frank disclosure during divorce proceedings. If you are working towards an agreement through negotiation or attending mediation you will be asked to provide financial disclosure voluntarily. If there are financial remedy proceedings in a court setting, there will be a court ordered requirement for full and frank financial disclosure to be made.
The document used for financial disclosure is a Form E, a detailed 28-page financial statement covering every aspect of your financial life.
Why full and frank financial disclosure matters
You simply cannot reach a fair financial settlement without knowing the complete picture. Complete financial disclosure is important because it:
- Creates a level playing field. When both parties understand exactly what assets, income, and debts exist, you can work towards an arrangement that genuinely reflects your circumstances.
- Protects against future challenges. If one party later discovers assets that weren’t disclosed, they can apply to have the entire settlement set aside—even years after you thought everything was finalised.
- Enables informed decision-making. Proper decisions can only be made when all the facts are known. Without complete information, you might agree to something that isn’t actually fair.
The serious consequences of hiding assets
Recent court cases highlight just how seriously the legal system takes financial non-disclosure. The 2023 case of Cummings v Fawn provides a clear warning—a husband’s failure to disclose an inheritance led to the entire financial settlement being set aside.
The Goddard-Watts case is even more striking. After divorcing in 2010, the husband’s dishonesty about trust assets led to orders being overturned years later, demonstrating that incomplete disclosure can have consequences long into the future.
Non-disclosure can result in:
- Financial penalties imposed by the court
- Orders requiring you to pay your former spouse’s legal costs
- Findings of contempt of court, which in serious cases can lead to imprisonment
- The financial settlement being reopened at any time in the future
What you need to disclose
Full and frank financial disclosure must be comprehensive:
- Property. All property you own or have an interest in, with professional valuations and mortgage details.
- Bank accounts and savings. Every account you hold, typically requiring 12 months of statements.
- Pensions. All pension arrangements, including Cash Equivalent Transfer Values (CETVs).
- Investments. Stocks, shares, bonds, and digital assets like cryptocurrencies and NFTs.
- Business interests. Detailed information about business structures, value, and income.
- Debts. All liabilities including mortgages, loans, credit cards, and overdrafts.
- Income. Complete details from all sources, including payslips, P60s, and tax returns.
- Expected inheritance. Any inheritance you’re likely to receive, even if the person is still living.
- Trust interests. Any interest in trust arrangements.
Voluntary disclosure and court-ordered disclosure
- Voluntary disclosure occurs when both parties agree to exchange financial information, usually with solicitors’ assistance or through mediation. This approach is generally faster, less stressful, and more cost-effective.
2. Court-ordered disclosure becomes necessary when voluntary disclosure doesn’t work or when financial remedy proceedings have been issued. Both parties must complete their Forms E within specific timeframes, typically 35 days before the First Appointment.
Form E ends with a Statement of Truth that you must sign, confirming everything disclosed is true and complete. False declarations carry serious legal consequences.
Modern challenges in financial disclosure
Digital assets present particular challenges. Cryptocurrencies, online trading platforms, and app-based investments all need declaring but are often harder to trace than traditional assets.
Self-employment and portfolio careers add complexity. Variable income from multiple sources requires careful record-keeping and often several years of accounts.
Courts now have extensive powers to order disclosure of digital records and can require third parties, including banks and online platforms, to provide evidence.
When specialist help is needed
Certain situations benefit from additional expertise:
- Complex business structures will require forensic accountants
- Valuable or complex pension assets will require Pensions on Divorce Experts
- Concerns about hidden assets may need specialist tracing services
- International elements complicate disclosure significantly
- Trust arrangements often require specialist input
Preparing for financial disclosure: practical guidance
- Begin collecting documents early. The earlier you start gathering paperwork, the less overwhelming it feels.
- Request pension valuations promptly. CETVs can take several weeks to arrive.
- Be completely honest. The consequences of hiding assets far exceed any temporary advantage.
- Update your disclosure when things change. Your obligation continues throughout proceedings.
- Seek professional advice early. The sooner experienced family law solicitors become involved, the smoother the process typically runs.
How Nelsons can support you
Our family law team at Nelsons has extensive experience guiding people through financial disclosure. We take time to explain what’s needed, help you gather necessary documentation, and ensure Form E is completed accurately and thoroughly.
Financial disclosure might not be the aspect of divorce people think about first, but it’s absolutely fundamental to achieving a fair outcome. Done properly, it creates a solid foundation for a settlement that allows both parties to move forward with confidence.
If you’re going through a divorce and need guidance on financial disclosure, our experienced family law team is here to help. Contact Nelsons today to discuss your situation in confidence.
How can we help?
Emma Davies is a Partner in our Family Law team, which is ranked in Tier One in the independently researched publication, The Legal 500.
Emma specialises in divorce and financial settlements, which involve complex issues and substantial assets. She also advises on pre- and post-nuptial agreements, cohabitation agreements and separation agreements, along with private law Children Act disputes. Emma is a qualified collaborative law and Resolution Together practitioner.
If you need further advice on the subjects discussed above, please contact us and we will be happy to discuss your circumstances in more detail and give you more information about the services that our family law solicitors can provide, along with details of our hourly rates and fixed fee services.
For more information or advice, please call Emma or another member of our team in Derby, Leicester or Nottingham on 0800 024 1976 or contact us via our online form.
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