Financial disclosure remains a cornerstone of divorce proceedings in England and Wales. While our earlier article, “The Importance of Financial Disclosure in Divorce”, outlined the foundational aspects, this update delves deeper into recent developments, emerging challenges, and best practices to ensure transparency and fairness in financial settlements.
The requirement for full and frank financial disclosure allows both parties—and the court, where necessary—to understand the true financial picture. As of July 2025, emphasis continues to be placed on accuracy, transparency, and early engagement to prevent delays and avoid unnecessary litigation.
Understanding the Evolving Landscape
The financial disclosure process has grown more complex in recent years, influenced by both legal reforms and societal changes. The rise of digital assets, diversified investment portfolios, and self-employment income streams means that traditional income and asset assessments may not always paint a full picture.
Courts expect that each party will provide full information on income, assets, liabilities, and pensions. The Form E remains the standard mechanism, but additional financial statements and supporting documents are often needed. Clients should also be aware that changes to HMRC data-sharing protocols now allow for enhanced cross-checking of asset declarations.
Key Components of Comprehensive Disclosure
An effective financial disclosure exercise should include the following categories:
- Income Details: Including salaries, self-employment income, dividends, rental income, benefits, and bonuses.
- Assets: This covers the family home, investment properties, bank accounts, stocks and shares, vehicles, savings, and valuable personal items such as jewellery and art.
- Debts and Liabilities: All credit card balances, personal loans, overdrafts, and mortgage accounts should be listed.
- Pensions: Both private and occupational pensions must be disclosed, and current cash equivalent values (CEVs) obtained.
- Business Interests:Where one or both parties hold shares in a limited company or are sole traders, the business must be valued and accounts shared.
- Trusts and Inheritances: Even future interests in family trusts or anticipated inheritances should be disclosed, as they may influence settlement outcomes.
- Digital Assets: Cryptocurrencies, NFTs, and online investment portfolios have become standard components of modern disclosure.
Each item should be backed by documents covering a 12-month period where applicable. Inconsistencies between lifestyle and declared income may lead the court to infer non-disclosure.
The Imperative of Full and Frank Disclosure
The duty to disclose fully and honestly is not optional. It is a legal obligation that continues throughout proceedings. Partial or misleading disclosures can have serious consequences, including:
- Adverse Inferences: Courts may conclude there are hidden assets and make decisions accordingly.
- Cost Orders: A party who fails to disclose can be penalised by being ordered to pay the other party’s legal costs.
- Set-Aside Applications: Agreements and consent orders can be overturned if material non-disclosure is later revealed.
- Contempt of Court: Deliberate concealment can result in fines or imprisonment.
The latest Family Procedure Rules reinforce this duty and stress the continuing obligation to update the court and other party if circumstances change before final resolution.
Navigating Complex Financial Structures
Modern financial portfolios often involve offshore holdings, layered business ownership, or intricate pension arrangements. Disclosure in these circumstances may involve obtaining specialist valuations or forensic financial analysis.
At Midwinters, we frequently work alongside trusted independent financial advisers, actuaries, and chartered accountants to ensure our clients’ disclosures meet court expectations. This is especially critical where the opposing party may have significant control over information—as in family businesses or investment trusts.
The Role of Technology in Disclosure
Technology has transformed how financial information is stored and accessed—but it also introduces challenges. While cloud-based platforms, online banking, and digital accounting tools make document retrieval easier, new risks have emerged.
Some parties attempt to obscure assets through cryptocurrency wallets, foreign accounts, or shell companies. In response, courts now take a robust approach to suspected non-disclosure, with power to order disclosure of digital records and compel third parties to provide evidence.
To aid clients, Midwinters ensures that all digital submissions are securely stored and shared, and we help clients collate accurate records from online platforms such as HMRC, pension dashboards, and investment apps.
Best Practices for Effective Disclosure
The following principles can help clients approach financial disclosure confidently and effectively:
- Start Early: Begin gathering documentation as soon as separation is contemplated. This prevents last-minute delays and supports proactive legal planning.
- Be Thorough: It’s better to over-disclose than under-disclose. Missed items can create distrust and lead to legal challenges later.
- Use a Checklist: Solicitors at Midwinters provide comprehensive checklists to ensure nothing is overlooked.
- Update Regularly: If your financial situation changes—through a bonus, property sale, or new liability—update your disclosure promptly.
- Be Transparent: Even if assets are not in your name, you may have a legal or beneficial interest that must be disclosed.
- Communicate: If you’re unsure about whether to include something, ask your solicitor for guidance. Erring on the side of caution is always best.
Midwinters’ Commitment to Supporting Clients
At Midwinters, our experienced family law team works closely with clients to manage financial disclosure efficiently and with the least possible stress. We understand that this part of the process can feel invasive and overwhelming.
Our role is to make it as smooth and secure as possible—whether you’re disclosing straightforward income and pensions or navigating business valuations and trust arrangements. We also support clients where the other party is being evasive, and can apply for court orders to obtain the necessary information.
Our secure online questionnaire system allows clients to start the disclosure process at their convenience, even before a formal meeting. This helps build a clear picture from day one and makes the best use of time during consultations.
Conclusion
Financial disclosure is a vital step in securing a fair financial settlement after separation. It ensures that all relevant information is on the table and gives both parties—and the court where necessary—the ability to make informed decisions.
As financial landscapes evolve, and as digital and complex asset types become more common, full and frank disclosure has never been more important. Courts continue to take a robust stance against non-disclosure, and the consequences can be severe.
If you are navigating through a divorce or separation and need expert advice on financial disclosure or any other family law matters, we invite you to contact Lucy Webley or her PA Linda at Midwinters. We offer a free half-hour consultation to discuss your specific circumstances and how we can assist you.
Please visit our Family Law page or call 01242 514674 to arrange a meeting. Let us help you achieve a fair and just resolution to your family law issues with our expert, compassionate service.
