Divorce or separation entails numerous legal and financial complexities, particularly regarding the fair division of assets. One fundamental aspect underpinning a just resolution is the full and frank disclosure of financial circumstances by both parties, as mandated by the Family Proceedings Rules 2010. At Midwinters, our experienced family law team, led by Partner Lucy Webley, is committed to guiding our clients through these essential requirements to secure a fair and equitable outcome.

 

The Essence of Financial Disclosure

In divorce proceedings, both parties are legally obligated to provide a comprehensive and honest account of their financial circumstances whether as part of the court process or voluntarily. This process, often initiated through the completion of Form E, is not merely a procedural step but a critical element that informs the equitable division of assets. The Family Proceedings Rules 2010 explicitly require that all financial and relevant circumstances are disclosed fully, clearly, and frankly.

 

Legal Requirements and Consequences

The disclosure process includes detailing all assets, liabilities, income, and  earnings through documentary evidence such as bank statements, property valuations, wage slips, and more. This exhaustive financial profiling helps ensure that all assets are considered in the settlement, from real estate and savings to pensions and investments.

The significance of this requirement is underscored by severe legal implications for non-compliance. If a party fails to disclose their financial circumstances accurately or is found to have deliberately concealed information, the consequences can be severe, ranging from the reversal of court orders to contempt of court  proceedings for breaching court orders which can result in a prison sentence.

 

The Process of Financial Disclosure

  1. Completion of Form E: This comprehensive form is the primary tool for financial disclosure, requiring detailed information about each party’s financial status. It includes mandatory declarations of truth, reinforcing the legal obligation to provide accurate information.
  2. Supporting Documentation: To corroborate the details provided in Form E, parties must attach relevant documentation such as bank statements for the past 12 months, mortgage statements, pension valuations, and more. This documentation provides a clear snapshot of each party’s financial situation.
  3. Declaration of Changes: Any material changes to financial circumstances after the initial disclosure must be reported to the court promptly. This ensures that all decisions are made based on the most current information.

 

The Role of Solicitors in Financial Disclosure

The complexities of gathering, organising, and presenting financial disclosures can be daunting. This is where the expertise of solicitors becomes invaluable. Solicitors assist by:

  • Ensuring Compliance: They help clients understand their legal obligations and ensure that all necessary documents are correctly completed and submitted.
  • Clarifying Complexities: Particularly in cases involving complex financial arrangements or international assets, solicitors play a crucial role in detailing and explaining financial situations.
  • Negotiating Settlements: Armed with accurate financial disclosures, solicitors can negotiate fair settlements that consider the future needs and obligations of both parties.

 

Why Full Disclosure Matters

Full financial disclosure ensures that all assets are equitably divided and that any settlement considers the actual financial positions of both parties. It forms the basis for negotiations and court rulings regarding financial settlements and can significantly affect the outcomes of alimony, child support, and asset division.

Moreover, transparent disclosure can prevent future legal challenges. Settlements based on incomplete or inaccurate information can be overturned, leading to further legal proceedings and associated costs.

 

The Midwinters Approach to Family Law

At Midwinters, we understand that divorce and separation are challenging experiences, and we are dedicated to handling each case with sensitivity and professionalism. Our team, led by Lucy Webley, has over 25 years of experience in family law, specialising in divorce, financial settlements, and related family law matters. We offer tailored advice that respects the personal and financial circumstances of each client.

 

Conclusion

The requirement for full and frank financial disclosure is a cornerstone of fair divorce settlements under the Family Proceedings Rules 2010. Failing to comply can lead to significant legal repercussions and impact the fairness of the settlement reached.

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.