All lawyers will advise their client to obtain financial disclosure from their ex-spouse to be.
Financial disclosure includes, for example:
- Property valuations
- Mortgage statements
- Bank statements
- ISA statements
- Dividend statements
- Business accounts
- Tax calculations
- Pension statements
- P60s
- Payslips
This list is not exhaustive and what is required will depend on the facts of the case.
Financial disclosure can simply be the exchange of the above documents (known as ‘summary disclosure’) or can be done by using a court form, known as Form E. The form can be used even if the court process isn’t used.
The form also asks the parties to provide other information which may be relevant to the fair outcome, such as what they need to rehouse, contributions, the standard of living enjoyed during the marriage, and any changes in their assets or income in the last or next 12 months.
Form E is available on the GOV.UK website.
Parties should exchange financial disclosure, which should then be reviewed. Questions can then be asked about anything that has been disclosed (and that has not been disclosed!), and any missing documents requested.
It may be that the value of some assets needs to be independently and expertly determined, such as property, business or pensions. Accountants may need to be instructed to accurately determine any tax liabilities. Parties may also need advice from an IFA as to how much money they need as income or in their pension pots.
Once there is a firm idea of what is in the ‘pot’, the lawyer will then advise on the fair parameters for settlement.
Financial disclosure and advice should be obtained irrespective of the forum that is used for negotiating a settlement (e.g. mediation, arbitration, court, solicitor-negotiations).
For more information on financial disclosure or to find out how we can help you, please contact our Family Team on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch.