In financial remedy divorce proceedings, one of the key aspects is ensuring full disclosure of financial information. This typically involves both parties sharing relevant documents to ensure a fair division of assets. However, there are instances where critical information is in the hands of third parties—people or organisations not directly involved in the divorce. In these cases, the court can issue an Order for Disclosure compelling the third party to provide the necessary documents.
What is an Order for Disclosure?
An Order for Disclosure requires a third party to reveal certain documents or information relevant to a divorce case. These could be documents held by a business partner, accountant, or bank. This is crucial for a fair financial settlement, especially when one party suspects that assets or income may be hidden.
When Can the Court Issue an Order for Disclosure?
The court can only issue an order for disclosure when it’s necessary to resolve the case fairly or reduce costs. The person requesting disclosure must present evidence to the court showing why the third-party documents are essential. This ensures that the disclosure is not overly broad or unnecessary but is focused on addressing key issues in the case.
What Does an Order for Disclosure Include?
If the court grants the disclosure order, it will specify the following:
- Documents to be Disclosed: The order will outline which documents or categories of documents the third party must provide. This helps avoid confusion and sets clear expectations.
- Documents No Longer in Control: If the third party no longer has the documents in question (for example, if they’ve been lost, destroyed, or passed on), they must explain this to the court.
- Withheld Documents: If the third party believes they are legally entitled to withhold certain documents, they must inform the court and provide reasons for withholding.
Additional Requirements
The order may also require the third party to:
- Explain Missing Documents: If they no longer have the requested documents, they must explain what happened to them.
- Set Timeline for Disclosure: The court will set a specific time and place for the third party to disclose and allow inspection of the documents.
Limits to Disclosure Orders
The court cannot compel a third party to produce documents they could not be required to produce at the final hearing. For example, documents protected by legal privilege or documents that are irrelevant to the case cannot be disclosed.
Furthermore, the court’s power to issue disclosure orders does not limit its ability to use other legal tools to compel third parties to provide documents.
Why is This Rule Important?
This rule ensures that all relevant financial information, even when held by third parties, can be accessed to facilitate a fair divorce settlement. It helps prevent one party from hiding assets and ensures transparency in financial matters. At the same time, it protects third parties from unnecessary or burdensome disclosure requests.
In summary, Rule 21.2 is an important tool for ensuring fairness in divorce proceedings. It allows the court to compel third parties to disclose crucial documents, ensuring that both parties have access to the information needed for a fair financial settlement.
How Nelsons can help
Melanie Bridgen is a Partner in our Family Law team.
At Nelsons, we have a dedicated team of experts who can give specialist advice and representation. If you need advice on any related matters, please contact Melanie or another member of the team in Derby, Nottingham or Leicester on 0800 024 1976 or via our online form.
Melanie or the team will be happy to discuss your circumstances in more detail and give you more information about the services that our family law team can provide, along with details of our hourly rates and fixed fee services.
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