Do I need to disclose my finances?

When seeking a Financial Settlement integral to divorce, the first step is almost always for there to be an exchange of full and frank disclosure. The duty to disclose financial information remains open throughout the case and helps to ensure that both parties are fully updated on the financial circumstances of the other.

This is an essential step to enable your solicitor to accurately advise on the remit of a settlement in your case.

However, not everyone is always open to such steps being taken. So what then?

Whilst there is no mechanism to enforce disclosure voluntarily, the reality is that a failure to engage on a voluntary basis, will ultimately lead to an application being issued at court.

As part of the financial remedy proceedings, both parties are ordered to file and serve their disclosure by way of a Form E. A failure to do so, then becomes a breach of court order, when sanctions can be imposed by the court. This can include costs orders, fines, community service and/or imprisonment.

The case of Moher v Moher [2019] was also a further reminder that those who engage in litigation misconduct and fail to provide full and frank disclosure during financial proceedings, may ultimately suffer the consequences. In this case, the Judge was able to make assumptions about the husband’s finances and court orders based on those assumptions, using a ‘broad brush’ approach. The court has a wide discretion to achieve fairness and will make findings against those who seek to frustrate that fairness.

If you need expert guidance on separate or divorce, then contact Harrowells' Family Law Team.