MY DIVORCE - MY WEALTH - PART 3: The Importance of Financial Disclosure
What is Financial Disclosure?
Financial Disclosure in divorce is the process whereby each party provides full transparency for their financial circumstances.
Each party has an obligation to clarify their financial position, often referred to as “full and frank financial disclosure” as part of your divorce process, whether this is done initially on a voluntary basis either directly with your former partner or through solicitors, or whether this is done in mediation, arbitration or as part of an application for a Financial Remedy Order through the Family Court.
How is this done?
Financial Disclosure is achieved by completing a Form E Financial Statement which documents your financial position succinctly and clearly, to confirm your financial circumstances, including but not limited to:
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Property values and details of any mortgages secured against those properties;
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Banks accounts and other methods of savings, such as ISAs, premium bonds and shares;
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Values of any business interests, which is particularly important with many high net worth individuals;
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Pension values of all descriptions, whether these are private arrangements, employment schemes, or SIPPs and SSASs, the latter being pension vehicles often used by many high net worth individuals;
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Income details, whether from an employed basis, self-employment, directorship or investment income.
Why is it important?
You need to be made aware of and fully understand your former partner’s financial position. Without financial disclosure, you cannot be sure that any proposed financial settlement offered to you by your former partner is acceptable. Exchanging financial information is fundamental so that your Solicitor can advise you on a financial settlement that not only fair, but reasonable too.
Correctly completing “full and frank” financial disclosure at the outset can then avoid a financial settlement being re-opened at a later date if non-disclosure comes to light.
How can we help?
Our team of specialist family solicitors are adept at resolving matters without the need for court proceedings and have a wealth of knowledge about the alternative options available. For further information, or to make any enquiry, please.
Alistair Dobson, Associate Family Solicitor
Lawson West Solicitors, Leicester
