Financial disclosure

What is financial disclosure and why does it matter?

Financial disclosure is the process by which each spouse sets out their income, assets, liabilities and pensions, together with supporting evidence. The court cannot reach a fair outcome, and a solicitor cannot properly advise on a proposed settlement, without it. Since Livesey v Jenkins [1985], it has been well established that spouses owe each other, and the court, a duty of full and frank disclosure of all relevant financial circumstances. That duty continues throughout the process, so any significant change, such as a new job or an inheritance, must also be disclosed.

What is Form E and what does it include?

Form E is the standard financial statement used in financial proceedings, and it is commonly used for voluntary disclosure too. It covers property, savings, investments, pensions, business interests, debts, income and future needs. It must be supported by documents, typically including:

• 12 months' statements for every bank account held in that period, including closed and joint accounts;
• recent payslips, a P60 and any tax returns;
• pension valuations (CETVs);
• mortgage statements and property valuations; and
• business accounts, where relevant.

Form E is signed with a statement of truth, and knowingly giving false information can amount to contempt of court.

When does disclosure take place?

Where couples are negotiating directly, through solicitors or in mediation, disclosure is exchanged voluntarily, usually early in the process. If financial proceedings are started, the court sets a timetable, and both parties must file and exchange Form E at least five weeks before the first appointment. After that, each party can raise questions about the other's disclosure and request further documents, which the judge will consider at the first appointment.

If you're concerned about your spouse's finances or preparing your own disclosure, click below to speak to one of our family solicitors in confidence.

What happens if my spouse doesn't disclose everything?

The court has a range of powers. It can order further disclosure, require a spouse to answer questions on oath, and order documents from third parties such as banks or employers. Where a spouse is found to have concealed assets, the court can draw adverse inferences, meaning it may assume they have more than they admit, and make costs orders against them. If assets are being moved to defeat a claim, an urgent freezing injunction may be available.

Non-disclosure can also unravel a settlement after it has been made. In Sharland v Sharland [2015], the Supreme Court confirmed that an order obtained through fraudulent non-disclosure will usually be set aside.

Can I take copies of my spouse's documents?

It is understandable to want evidence if you suspect your spouse is hiding something, but taking, copying or accessing their private documents or emails without permission is not permitted. Following Imerman v Tchenguiz [2010], such documents must be returned, and doing so may expose you to civil claims or even criminal liability. Instead, raise your concerns with your solicitor, who can ask the court to order the information to be produced properly.