During a divorce, the prospect of dividing your finances can seem daunting. In truth, there is no ‘one size fits all’ solution.
The first step in dividing the finances, regardless of whether it’s the court making a decision or an agreement between you and your ex-spouse, is to find out exactly what is in the pot to begin. This requires you and your ex-spouse to provide information on your financial circumstances, which is called financial disclosure.
“It is vital to understand what there is to share before you start trying to agree how it is going to be shared – this seems like a really simple thing to say but often clients do not appreciate the importance of this, the effect being that they could miss out on assets or income that they are entitled to.”
Charlotte Beck, Partner
Financial disclosure can be undertaken voluntarily outside of court to facilitate negotiation or mediation. However, if you require the court’s assistance to resolve your matrimonial finances, there are some key stages of disclosure, and the court will set out a timetable for each step to be completed.
The Stages Of Financial Disclosure
Step 1: Form E
The first stage of financial disclosure is for both you and your ex-spouse to complete a Form E. This is a 35-page form that sets out every type of asset, liability, and income source.
It requires supporting evidence. For example, you will need to provide 12 months’ bank statements for all accounts in your name. This form clearly sets out both your capital (such as savings) and income (such as payment from employment or benefits).
Step 2: Questionnaires
After you and your ex-partner have exchanged your Forms E and sent them to the court, the next step is to review each other’s disclosure. If you are happy that everything has been disclosed accurately, the disclosure process is brought to a close.
However, if you think that there is some information missing (for example, if some of the required supporting evidence has not been provided) or you have questions on any of the contents (for example, if you can see regular payments to an account that you do not recognise), then this is set out in the questionnaire. At the first hearing (called a First Directions Appointment), the judge’s role includes approving questions in a questionnaire; some questions may be amended or deleted.
Both parties exchange questionnaires and must reply to the questions and provide any supporting evidence.
Step 3. Schedule of Deficiencies
This is the final stage of financial disclosure. After you and your ex-spouse have exchanged your replies to the questionnaire and sent them to court, the next step is to review the replies and any evidence. If there are still areas that you believe are incomplete or incorrect, these are set out in the schedule of deficiencies. As with the questionnaires, these are exchanged, and both parties must reply to any questions and provide any supporting evidence. Sometimes, only one party will raise deficiencies, and the other party must reply.
In some situations, it is more appropriate to apply for specific disclosure orders than raise a schedule of deficiencies, depending on the information that is being asked for. Your solicitor can advise you on the best way to get the answers you want.
If, after the replies to the schedule of deficiencies are exchanged, you think there are still issues with disclosure, then there are a number of ways to tackle this, which your solicitor can advise on (for example, asset tracing).
Contact Us
At Slater Heelis, we recognise that everyone’s financial circumstances are unique and are committed to providing clear, practical advice on navigating these issues. We will always be flexible and tailor our service to suit your needs – whether you just want some advice on completing the steps above yourself, or if you want us to prepare all the documents on your behalf.
If you wish to discuss your matrimonial finances or to explore our full range of family law services, contact us using our online form, or call us on 0330 111 3131.
Please note the information provided on this website does not constitute legal advice; it is for general informational purposes only.