The duty to provide full and frank financial disclosure on divorce
When a marriage breaks down resulting in divorce proceedings and related financial proceedings, both parties are required to exchange "full and frank" financial disclosure, so that they can obtain legal advice as to their entitlement in advance of resolving the financial arrangements and so that there can be a fair trial in the event agreement cannot be reached. The Court will also require the parties to complete a detailed financial statement known as Form E, together with substantial supporting financial documentation which covers the previous 12 months and sometimes a longer period. When compiling the information required for the Form E, particular difficulties can arise when seeking to place values on intangible or deferred assets or liabilities. The point of the disclosure is to give an honest and conscientious estimation of the true net worth of each party at the time the disclosure was given. This is extremely important and parties can be heavily criticised if it is not completed accurately. Failure to give thought to the Form E can also result in increased legal costs, because parties are entitled to raise questions and requests for further documents in respect of the disclosure.
If your marriage is breaking down, it can be immensely helpful to have an initial meeting with a specialist family solicitor prior to proceedings being issued in order to consider your finances and so that you are aware of the information that will have to be provided in the event of financial proceedings.
If you would like more information in connection with financial proceedings, please contact our family department.
t: 020 7227 7448