If you are a party to financial remedy proceedings as part of your separation from a spouse, you will be expected to disclose certain financial information to your spouse and the court.

What is the duty of financial disclosure?

In financial remedy proceedings, both you and your spouse will have to comply with a duty of ‘full and frank’ financial disclosure. This means that you will have to give each other and the court a complete picture of your respective financial positions by providing all the relevant information and documentation necessary to do so.

The duty of financial disclosure exists to ensure that the court has a clear understanding of everyone’s positions and can make fair and informed decisions on that basis. It also serves to encourage open communication between you and your spouse and avoid any difficulties arising from one party trying to hide or disguise their financial position from the other.

When does the duty arise?

If you are taking part in the court process for financial remedy, or more broadly working with solicitors while trying to come to an agreement with your spouse, obtaining and exchanging financial disclosure is normally the first stage of the proceedings.

The duty of financial disclosure is ongoing, so you will be expected to provide updating disclosure as your case progresses. This is especially relevant if there are any significant changes to your finances after you have exchanged financial information, for example if you receive an inheritance or sell a property.

The duty only ends when your case concludes and a final order is made by the court.

What will I be expected to disclose?

The duty of financial disclosure is a broad one, and as such covers any financial information and documentation deemed relevant to the issues in your case. Examples of the kinds of things you will be expected to disclose include:

• Information regarding any properties you own
• Bank statements for the past 12 months for each of your bank accounts
• Pension statements
• Company accounts for any businesses you have an interest in

It is also usually expected that parties will prepare detailed summaries of their current monthly and annual spending, as well as their estimated future spending, as part of the disclosure exercise.

Is there a standard format of financial disclosure? What is the Form E?

In court proceedings, initial financial disclosure is made through a financial statement known as the Form E. This is a standardised form which sets out different sections of requested information, as well as the documents required in support. The Form E is commonly used even outside of court proceedings to facilitate voluntary disclosure.

The Form E includes a statement of truth you will be expected to sign; this statement confirms that you believe the information you have provided to be a ‘full, frank, clear and accurate disclosure’ of your financial circumstances. Signing the statement of truth means accepting proceedings for contempt of court may be brought against you if it is later discovered that you were not being truthful.

Is there a way to avoid financial disclosure?

As long as you are operating within the framework of the court proceedings, there is no way for you to oppose the duty of financial disclosure without facing consequences.

One important consequence of not complying with your duties is that, if the non-disclosure is significant, the court may draw adverse inferences, which means they will look negatively upon the evidence of the person who failed to disclose the information. Non-disclosure can also have cost consequences in terms of the orders made by the court. In very serious cases, it is possible for the non-disclosing spouse to be held in contempt of court.

Even outside of the court system, refusing to provide disclosure is likely to lead to complications, as it is rare that parties will reach a voluntary agreement if they do not feel they have been given an accurate picture of each other’s positions.