A Guide to Financial Disclosure in Divorce

Financial disclosure in divorce is one of the most critical, and often misunderstood aspects of the financial settlement process. Whether you are dealing with complex assets, business interests, or high-value portfolios, achieving a fair outcome depends on complete transparency from both parties.

In England and Wales, the court expects full and frank financial disclosure to ensure that any agreement reached is equitable, sustainable, and reflective of each party’s true financial position. Without it, there is a real risk of unfair settlements, prolonged disputes, or orders being overturned in the future.

This guide explains how financial disclosure in divorce works in practice, what your obligations are, and how to protect your position throughout the process.

Understanding Financial Disclosure

What is financial disclosure and why is it required in divorce proceedings?

Financial disclosure is the process where both spouses’ exchange information about their financial situations, including assets, debts, income, and expenses, to facilitate a fair settlement.

It is required in divorce proceedings to ensure a transparent and equitable distribution of property and to address future needs and support obligations, as determined by the court.

Why is a statement of financial position important in divorce cases?

A statement of financial position is important in divorce cases because it provides a complete and honest picture of both parties' financial position.

Full and frank financial disclosure is essential to ensure that a financial settlement is fair and that neither party is being misled about the other's financial situation. Without it, a party may not receive the share of assets they are entitled to.

How can financial disclosure affect the outcome of a divorce settlement?

The purpose of financial disclosure is to ensure that both parties have a clear understanding of each other’s finances so that a fair agreement on how to divide the assets can be reached and any ongoing financial responsibilities can be addressed.

Without full financial disclosure, one party may agree to a settlement that is fundamentally unfair.

How Financial Disclosure Fits Into the Divorce Process

How does financial disclosure fit into the wider divorce process?

It is important to resolve the financial issues between the parties at the same time as the divorce proceedings are ongoing, so that an agreement as to how the matrimonial assets should be divided can be agreed before the divorce is finalised.

Is financial disclosure required before applying for a financial order?

Not always. Parties may come to an agreement as to how the assets are to be split without the need for full and frank financial disclosure.

However, without full and frank financial disclosure, you will not fully understand the merits, reasonableness or implications of the financial agreement that you and your spouse have come to. Full and frank disclosure of both parties’ financial positions is therefore strongly encouraged before applying for a financial order.

What role do divorce papers play alongside financial disclosure forms?

Divorce proceedings are separate to financial proceedings. However, it is necessary to resolve the finances alongside the divorce.

We would usually advise that the Final Order, which brings the marriage to an end, should only be applied for when a final financial order has been made. This is because of the potential loss of certain benefits and rights on divorce which you may wish to preserve until those issues are dealt with in the final financial order.

The Financial Disclosure Process in Practice

What documents are typically included in a financial disclosure?

Each spouse will complete a financial statement known as Form E. The Schedule of Documents to accompany Form E can be found at page 29 of Form E and shows the documents you must attach to your Form E if applicable. This includes for example bank statements, payslips, tax returns, and property valuations etc.

A copy of Form E can be found online.

How can it differ in contested versus uncontested divorces?

The financial disclosure process is no different in contested and uncontested divorces.

However, in an uncontested divorce, financial disclosure is a more cooperative process where both parties voluntarily exchange information with the intention of reaching a mutual agreement. In a contested divorce, financial disclosure can become adversarial, with court-mandated processes and potential court orders for third-party information if one party hides assets or doesn't fully comply.

Do I need to disclose assets acquired after separation?

The duty to make full, frank and honest disclosure is ongoing throughout the proceedings and you must share details about any material change in your financial circumstances, including assets acquired following the separation.

Your Duties and the Risks of Holding Back

Can I refuse financial disclosure in a divorce, and what happens if I do?

If either spouse refuses financial disclosure, this is likely to prolong divorce proceedings and may result in no financial order being made. This is not advisable as it leaves future financial claims unresolved.

While it is technically possible to refuse to voluntarily disclose details of your financial assets, either spouse can make an application to the court, who can order you to provide the information anyway. If you ignore the court order, you can be fined or face tougher penalties.

What are the risks of providing incomplete or misleading financial disclosure?

Providing incomplete or false financial information can constitute material non-disclosure, which could result in any financial order which is agreed or determined by the court being set aside or overturned in the future.

Protecting Yourself Through Proper Financial Disclosure

Why is it important to get legal advice before submitting financial disclosure?

It is important to seek legal advice before submitting financial disclosure to ensure that all information you have disclosed is accurate and complete.

How can a solicitor help make sure my financial disclosure is accurate?

To ensure your financial disclosure is accurate and complete, start early by familiarising yourself with the Form E and start gathering all relevant documents, such as bank statements, tax returns, and investment accounts.

Seeking professional advice from a solicitor or financial expert is helpful as they can guide you on what needs to be disclosed, help you compile the information correctly and protect your interests.

How do solicitors handle situations where a spouse refuses to provide financial disclosure?

If your spouse refuses to provide financial disclosure voluntarily, then your solicitors can make an application to the court to commence financial remedy proceedings. This will enable a court to compel your spouse to cooperate and/or determine how the assets should be divided and what the financial agreement between you both should be.

Can thorough financial disclosure speed up a divorce settlement?

If both spouses wish to engage in financial disclosure in order to reach agreement as to how the matrimonial assets should be divided prior to finalising the divorce, then the sooner a financial settlement is agreed, the sooner the divorce can be finalised.

When Things Go Wrong: Mistakes, Disputes and Hidden Assets

What are the most common mistakes people make with financial disclosure?

Common mistakes in financial disclosure include not disclosing all assets or liabilities fully, hiding assets, failing to account for pensions and providing inaccurate or incomplete income information. Incomplete or incorrect financial disclosure could lead to unnecessary delays.

How do courts handle cases where assets are hidden or undisclosed?

The court can compel your spouse to cooperate and disclose any hidden assets as part of their financial disclosure.

Can failing to disclose finances affect the final divorce settlement?

If you discover that your spouse has failed to disclose finances after the financial order is made, you can ask the court to reopen the case to set aside the original financial settlement and consider the section 25 factors afresh taking into account those finances that were not disclosed previously.

What happens if new assets are discovered after a financial order is made?

If new assets are discovered after the financial order is made, that were not disclosed previously, you can ask the court to reopen the case to set aside the original financial settlement and create a new one that accounts for the hidden assets.

Contact our Financial Disclosure Experts

With the right legal guidance, financial disclosure becomes a strategic tool, not just an obligation, ensuring your position is protected and your future properly accounted for.

We advise individuals on complex and high-value divorce matters with discretion, and precision. We go beyond the paperwork, giving you the confidence that every aspect of your financial position is handled with care.

If you need clear, expert advice on financial disclosure in divorce, contact our team, led by Head of Family Law, Simon Magner Mawdsley, for a confidential discussion. 

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