Financial disclosure can feel intrusive, particularly if you are unsure what you must provide or concerned that your spouse may not be giving the full picture. Understanding the process from the outset can help you prepare effectively, reduce avoidable disputes and make informed decisions about your financial settlement.

When dealing with finances on divorce, both spouses have an ongoing duty to provide full, frank and clear financial disclosure. In practice, this means giving each other a complete and accurate account of your financial circumstances.

Financial disclosure helps both spouses understand the assets, income and future earning capacity available to them.

Each spouse must disclose all relevant financial information and provide supporting documents. This is usually done by completing Form E. If court proceedings have not started, the spouses may agree to exchange the same information voluntarily in another format. This is known as voluntary disclosure.

Disclosure usually follows the format of Form E and includes evidence of:

• Property including the family home, rental properties and overseas properties, mortgage evidence and valuation details
• All personal bank accounts - supported by 12 months of statements
• Investments – including shares, PEPs, ISAs
• Pensions – All pensions you have in your name with the cash equivalent value
• Liabilities - including overdrafts, loans, mortgages and tax arrears
• Money owed to you
• Insurance policies – life insurance policies that you hold or have an interest in
• Cash sums and personal belongings over £500 – including jewellery, cars, furniture etc
• Income and earning capacity - including salary details with payslips, P60s, and tax returns, self-employment income and dividends. This may also include income from state benefits.
• Business assets and interests – copies of business accounts for the last two financial years, valuation documentation
• Assets held abroad or on your behalf by another person
• Any significant expected financial changes - such as a bonus, inheritance or the sale of a business

The disclosure process is not always straightforward. You may need advice if you are unsure whether an asset is relevant, your financial arrangements are complex, information appears to be missing or the figures disclosed do not reflect the lifestyle during the marriage. Early advice can help identify the right questions and avoid concerns being overlooked.

What happens if you do not provide full disclosure?

You must be honest when providing financial disclosure, even if you believe that a particular asset should not be shared with your spouse.

The duty to disclose is ongoing until negotiations have concluded and the court has made a final order. The figures provided must be accurate and realistic, and any significant expected changes such as a bonus, inheritance or the sale of a business must also be disclosed.

Assets must not be concealed and failing to comply with the duty of disclosure can have serious consequences.

Adverse inferences

You may be reluctant to disclose an asset if you think it could increase the amount your spouse receives however, failure to provide proper financial disclosure can lead to the court drawing adverse inferences.

Setting aside a financial remedy order

If the court finds that a party failed to provide full disclosure, it may set aside the financial remedy order. The court can then reconsider the case and use its wide discretion to make a different, potentially less favourable, order.

Litigation misconduct and costs

Failing to provide proper disclosure may be treated as litigation misconduct and could result in a costs order being made against you.

Fraud

A party to financial remedy proceedings who fails to provide full, frank and clear disclosure may also commit an offence under section 3 of the Fraud Act 2006.

If you are preparing financial disclosure, are concerned that information has not been provided or need advice about the potential consequences of non-disclosure, our specialist family law team can help you understand your options and decide on the appropriate next step.