Financial disclosure plays a central role in resolving financial matters following the breakdown of a marriage . Whether parties are negotiating through solicitors, directly, engaging in non-court dispute resolution (NCDR)(e.g. mediation), or involved in court proceedings, a clear and honest picture of each person’s financial position is essential. Although the process can feel intrusive and demanding, financial disclosure is designed to promote transparency, fairness, and informed decision making, helping parties reach outcomes that are both informed, legally sound and sustainable.

What Is Financial Disclosure?

• The process of providing full and accurate information about your financial circumstances.
• Includes details of assets, liabilities, income, expenses, pensions, and financial interests.

When and Why Is Financial Disclosure Required?

• It is a legal obligation in financial remedy court proceedings- the courts cannot make fair or lawful decisions without reliable financial information.
• Outside of the court area- it assists negotiating parties understand both parties financial circumstances in order to make an informed decision as to what financial arrangement might be fair following separation.
• Protects against hidden assets, underreporting of income, or financial imbalance between parties.

Penalties for Non-Disclosure in Court Proceedings

• The court may draw adverse inferences, assuming that undisclosed assets or income exist.
• Financial orders may be made that are less favourable to the non-disclosing party.
• The court can order further and more intrusive disclosure, increasing scrutiny and cost.
• The non-disclosing party may be ordered to pay the other party’s legal costs.
• Delays caused by non-disclosure can lead to delays, increasing legal fees and prolonging proceedings.
• In serious cases, the court may find a party in contempt of court, which can result in fines or, in extreme cases, imprisonment.
• Non-disclosure can damage a party’s credibility with the court, affecting how their evidence is viewed throughout the case.

How is Financial Disclosure Obtained?

Financial disclosure is most commonly obtained through the completion and exchange of Form E’s.

The Form E requires disclosure of:

• Capital assets (including property, savings, investments, and business interests)
• Liabilities (such as mortgages, loans, and credit cards)
• Income from all sources
• Monthly outgoings and anticipated future expenses
• Pension provision and pension valuations

Parties must provide supporting documents to evidence the information disclosed, typically covering at least the previous 12 months.

Once completed, Forms E are exchanged between the parties, allowing each side to review and assess the other’s financial position.

The Benefits of Financial Disclosure

• Promotes transparency and fairness between parties.
• Levels the playing field where one party has had greater control or knowledge of finances.
• Supports early negotiations and the attempt to settle outside of court intervention.
• Saves time, legal costs, and emotional stress in the long term.
• Supports more accurate negotiations and realistic settlement discussions.
• Creates outcomes that are more robust and less likely to be challenged in the future.

Why Engage in Financial Disclosure Outside of Court Proceedings?

• To support early negotiations and encourage settlement without court involvement.
• As part of mediation, collaborative law, or solicitor-led negotiations.
• To provide reassurance and clarity where parties wish to resolve matters amicably.
• To reduce the risk of future disputes or claims arising from non-disclosure.
• To give certainty and confidence that any agreement reached is informed and fair.
• To demonstrate good faith and a willingness to resolve matters constructively.

Obtaining legal advice from a solicitor in relation to financial disclosure is important. If you are engaged with court proceedings then we can help ensure your obligations for full and frank disclosure are met accurately and fully and protect you from the risks of non-disclosure penalties. Outside of the court area, we can support fair and informed decisions which encourage settlement.