Divorce isn’t just about separating emotionally and physically – it also involves full financial transparency. When couples decide to part ways, the legal system in England and Wales requires both parties to disclose their finances. This process, known as “disclosure,” ensures that any financial settlement is fair, informed and legally sound.
This article explores what financial disclosure means in divorce proceedings, why it’s essential and what happens if one party fails to comply. If you’re in the middle of a separation or just starting the process, understanding your legal obligations can help you protect your rights and avoid costly complications.
What is financial disclosure in divorce?
Financial disclosure is the formal process of sharing complete and accurate information about your financial situation with your spouse and the court. This typically includes details of:
- Income from all sources
- Property ownership
- Savings, investments and pensions
- Debts and liabilities
- Any other assets or financial interests
The goal is to provide both parties with a clear and honest picture of each other’s finances. This enables a fair division of assets and helps the court determine appropriate arrangements for spousal or child maintenance if necessary.
The legal requirement to disclose
Disclosure isn’t optional. In England and Wales, the duty to provide full, frank and clear disclosure is a legal requirement under the Family Procedure Rules. This obligation applies whether you are resolving finances through mediation solicitor negotiations or formal court proceedings.
The most common way to carry out disclosure is through a document called Form E. This form is used in financial remedy proceedings and requires each party to set out their financial position in detail. Supporting evidence – such as bank statements, payslips, mortgage documents and pension valuations – must also be provided.
Even if you are negotiating a financial settlement outside of court, both parties are expected to exchange financial information. Courts will only approve a consent order (the legally binding agreement that finalises a settlement) if they are satisfied that disclosure has taken place.
Why is disclosure important?
Disclosure is essential because it protects both parties and ensures any agreement is based on accurate and complete information. Without it, there is no way of knowing whether a settlement is fair – or whether someone is hiding assets to reduce what they must pay.
Failing to disclose honestly can lead to a range of problems. If you reach a settlement and it later emerges that one party failed to disclose assets or income, the agreement can be set aside and reopened by the court. This creates uncertainty, legal expense and additional stress for everyone involved.
What happens if one party fails to disclose?
If one person refuses to engage in the disclosure process or deliberately hides assets, the court can take several actions. These include issuing orders to compel disclosure, imposing fines or even awarding a larger share of the assets to the honest party. In serious cases, non-disclosure can amount to contempt of court, which may result in legal penalties, including imprisonment.
Judges take a strict approach to dishonesty in financial matters. If you knowingly provide false information or conceal assets, this can significantly undermine your credibility in court. It may also lead to a reassessment of the financial order and, in some cases, criminal investigation for fraud.
Ongoing duty to disclose
It’s important to understand that your duty to disclose doesn’t end after submitting Form E or exchanging financial information. If your financial situation changes during the divorce process – such as receiving a pay rise, redundancy or selling a property – you must update the other party and the court.
This ongoing obligation ensures the final settlement reflects both parties’ current financial circumstances at the time it is made. Failing to disclose changes can invalidate the agreement and result in further legal consequences.
How disclosure works in different divorce scenarios
The approach to disclosure can vary depending on how you’re resolving your financial issues:
1. Mediation
Even though mediation is an out-of-court option, full and frank disclosure is still required. Both parties are expected to exchange financial documents and work transparently to reach an agreement. The mediator may help identify missing information or recommend further disclosure before proceeding.
2. Solicitor-led negotiation
When family solicitors are involved, they’ll guide the exchange of financial information and review each party’s disclosure to ensure nothing has been omitted. If any issues arise, your divorce solicitor may raise formal questions or request additional documents.
3. Court proceedings
During financial remedy proceedings, the court strictly enforces disclosure rules. Each party must complete Form E and provide detailed supporting documents. There are also follow-up forms and questionnaires (Form E1, Form H, etc.) to clarify information or identify discrepancies.
What if you suspect your ex is hiding assets?
If you believe your ex-partner is not being truthful or has failed to disclose something important, you can raise this with your solicitor or the court. There are legal tools available – such as a “Section 37 application” or third-party disclosure orders – that allow divorce solicitors to trace hidden assets, request records from banks and investigate financial behaviour.
Evidence such as inconsistencies in documents, unexplained bank transfers or undeclared property can support your claim. Courts have wide powers to investigate financial matters and will take any attempt to conceal wealth very seriously.
Finalising the agreement
Once full disclosure has taken place, both parties can work towards a settlement – whether that’s through direct negotiation, mediation or a court order. It’s crucial to ensure that the financial picture is complete before making any decisions or signing a consent order. Doing so provides security and peace of mind, knowing that the agreement is based on full transparency.
Speak to a female divorce solicitor about financial disclosure
Disclosure is a cornerstone of the divorce process in the UK. Whether you’re dealing with a straightforward separation or a complex financial portfolio, providing full and honest information is not only a legal duty – it’s also the best way to achieve a fair and lasting outcome.
At Osbourne Pinner Solicitors, we specialise in guiding clients through financial remedy proceedings with clarity and care. Our experienced divorce solicitors will help you understand your obligations, ensure your ex is disclosing properly and protect your interests throughout the process.
We offer a free 30-minute consultation to discuss your case. Contact us today via the form below, call 0203 983 5080 or email [email protected] to speak with an experienced divorce solicitor.
You can come to our offices in Harrow, Canary Wharf, Piccadilly Circus or Manchester – or speak to us on a video call if you’d prefer a remote consultation.
