Financial disclosure is a fundamental part of family law proceedings in England and Wales, especially when dealing with the financial division of assets following the breakdown of a marriage or civil partnership. Central to this process is a detailed document known as Form E. This official court form is designed to provide a comprehensive picture of each party’s financial circumstances. The transparency offered through this form is vital for the fair resolution of financial claims.
For many people, the prospect of completing this document can feel overwhelming. There is often a combination of anxiety about revealing deeply personal financial information and uncertainty about what is legally required. However, preparation is key. When completed thoroughly and accurately, this form becomes the cornerstone of meaningful negotiations and ultimately a fair financial settlement. This article will equip you with clear guidance and practical steps to help you prepare effectively.
Taking Stock Emotionally and Organisationally
Before diving into paperwork and digital bank statements, take a moment to prepare yourself mentally. Financial disclosure is not just a form-filling exercise; it is a process that benefits from calm, objective thinking. Completing your financial disclosure honestly and fully is not just a legal duty; it is also a means of establishing credibility with the court and your former partner. Discrepancies and omissions, even those that are unintentional, can delay proceedings and damage your position.
Understanding the scope of what is required — and how much time and effort it will take — enables you to approach the task more successfully. Consider setting aside uninterrupted time and an appropriate workspace to collect and review your documents. Some people choose to keep a notebook or spreadsheet to track what has been gathered and what remains outstanding.
Identifying the Financial Information You Need
The form itself is divided into different sections covering various aspects such as income, capital, liabilities, pensions, and the needs of the parties and their children. Each of these components will require different kinds of documents and calculations. Here’s what you typically need to gather:
– Bank and savings account statements for the last 12 months
– Details of all sources of income, including payslips and P60s
– Tax returns and self-assessment forms if you are self-employed
– Valuations for property you own, including the matrimonial home
– Mortgage statements showing outstanding balances and terms
– Details of any loans or credit card debt
– Business accounts for any company you own partially or wholly
– Pension projections and transfer values for every pension holding
– Insurance policies, valuable possessions, and investments
– Schedules of personal expenditure, particularly if claiming financial need
Keep in mind that Form E requires full disclosure of both assets in your name and those held jointly or on behalf of others if you have an interest in them. Leaving out something you consider irrelevant can create suspicion and lead to accusations of hiding assets.
Working with Professionals Where Needed
While some people complete Form E by themselves, seeking professional assistance can be invaluable. A family law solicitor can clarify complex elements, especially if your circumstances include overseas assets, trust funds, or business interests. You might also benefit from the help of an independent financial adviser or accountant, particularly for matters involving pensions or company valuations.
In addition, many parties ask for a formal valuation of real estate or business interests. Property valuations should be provided by RICS-accredited surveyors, and business valuations should come with clearly explained assumptions and methods. It is often wise for both parties to agree jointly on the appointment of an expert where required, thereby reducing disputes later.
Beyond these services, mediators or collaborative lawyers may play a role in helping both sides communicate effectively about what has been disclosed.
Honesty Is the Best Policy
Court rules make it absolutely clear that each party must supply what’s known as “full, frank, and clear” disclosure. Any attempt to conceal, minimise, or distort financial information can seriously backfire. The family courts have robust powers to set aside settlements where one party has not disclosed their true financial picture. A failure to declare assets can also lead to an order for legal costs or, in extreme cases, contempt proceedings.
It’s equally problematic to inflate liabilities or underestimate income. Sometimes people fear they might be penalised for success or worry about how their former partner will react. But remember, the purpose isn’t to penalise either spouse, but to achieve fairness. Hiding relevant information undercuts this aim and usually ends up increasing legal costs and hostility.
If you’re unsure about how to characterise something (for instance, whether a cash gift should be considered an asset or income), it’s always best to seek legal guidance instead of omitting it.
Dealing With Complex Assets and Financial Structures
Some individuals have more involved financial portfolios which include offshore accounts, investments in start-ups, or intricate pension schemes. In these cases, special attention must be paid to how these are valued and disclosed.
For business owners, Form E requires detailed information on the structure, ownership, and income derived from the business. The court will want to establish not only the income you are drawing but also your potential earning capacity and the value of your shareholding. This may involve providing multiple years of trading accounts, expert valuations, and information about dividends or director’s loans.
Pension sharing and valuation is another commonly misunderstood area. Pension schemes provide benefits whose future value may be significant, even if they don’t affect current income. The form requires both current values (known as cash equivalent transfer values) and projections for retirement. These can be obtained from the pension providers. In many cases, it becomes necessary to get specialist advice to correctly assess the value of defined benefit pension schemes or consider offsetting pension rights against other assets.
Anticipating the Other Party’s Disclosure
While the focus is often on compiling your own disclosure, remember that your former spouse is required to complete their own Form E as well. Being organised and transparent in your submissions encourages reciprocal behaviour. During subsequent negotiations or court hearings, each side will have the opportunity to ask questions about the other’s disclosure.
This cross-checking stage, often formalised through a process known as a Questionnaire, allows any unclear, incomplete, or inconsistent parts of the disclosure to be challenged. If there are concerns about dishonesty or vagueness, it is usually better to raise them at this early stage through your solicitor or mediator, rather than later when outcomes have been determined.
Making Use of Supporting Schedules and Explanations
Form E includes several narrative sections allowing you to explain particular circumstances. Do not underestimate the value of these. Use them to highlight relevant factors like how the financial decisions were made during your marriage, the impact of caring for children on earning capacity, or health issues affecting your work. These explanations help the court understand your current position and your likely future needs.
For example, the section relating to your income needs may feel intrusive, but the court uses this to assess the cost of living and whether an award (e.g. maintenance) should be made. Being specific and realistic, and providing evidence through bank statements or spending logs, can help support your case without appearing exaggerated.
In relation to liabilities, take the opportunity to explain circumstances surrounding any significant debt. Was it jointly incurred? Has the other party continued to spend heavily since separation? These contexts matter when assessing whether liabilities should be shared or borne by one party alone.
Handling Incomplete or Missing Information Calmly
Even with the best efforts, sometimes you will not be able to track down every piece of requested information by the time the Form E is due. In such cases, it’s important to be proactive. Do not attempt to gloss over the absence of required documentation. Instead, make a brief statement explaining what is missing, why it could not be obtained, and what steps are being taken to obtain it.
For example, if you’re awaiting a property valuation, include confirmation that the valuer has been instructed and an estimated timescale. If you’ve applied for a statement from a pension provider but are experiencing delays, include the reference number and date of request. Providing this context shows that you are making reasonable efforts, and such transparency is often received positively by both the other side and the court.
Updating and Reviewing Disclosure Over Time
Financial disclosure is not a static, one-time exercise. If there is a significant passage of time between disclosure and any final agreement or court hearing, you will likely be required to provide updated financial statements. This ensures the information remains accurate and reliable.
Every party to financial proceedings owes a continuing duty of disclosure, right up to the point of final resolution. This means if you receive a new job offer, inherit money, or suffer a business downturn, you are obliged to update your financial statement. It is good practice to keep all your supporting documents in a clearly organised folder or digital directory to make updating more efficient.
Keeping Negotiations Focused and Productive
Once both sides have exchanged their Forms E and had the opportunity to raise questions, the next step is often towards negotiation or a financial dispute resolution hearing. For many couples, this process can lead to an agreement without the need for a full contested hearing.
Having completed a well-prepared Form E gives you an advantage — clarity about your assets, defensible explanations of your needs, and a disciplined understanding of your bottom line can all contribute to more efficient and constructive negotiations. It becomes easier to compromise effectively when both sides are working with a reliable understanding of the financial landscape.
Final Thoughts
Preparing for financial disclosure in family proceedings is not only a legal obligation but also an essential process for finding a fair, workable solution. Despite its administrative intensity, completing Form E is a valuable exercise in self-assessment and future planning.
By being honest, methodical, and proactive, you lay the foundation for resolution. Whether you navigate the process with the help of a solicitor or manage much of it yourself, the key lies in preparation and transparency. While emotions may run high during separation, following a disciplined approach to financial disclosure can bring a sense of control and clarity to what might otherwise feel like chaos.
In the end, disclosure is more than just paperwork — it is a step towards closure and the creation of a new financial future for everyone involved.