Financial Disclosure in a Divorce
During a divorce, the prospect of dividing your finances can seem daunting. In truth, there is no ‘one size fits all’ solution.
The first step in dividing the finances, regardless of whether it’s the court making a decision or an agreement between you and your ex-spouse, is to find out exactly what is in the pot to begin. This requires you and your ex-spouse to provide information on your financial circumstances, which is called financial disclosure.
“It is vital to understand what there is to share before you start trying to agree how it is going to be shared – this seems like a really simple thing to say but often clients do not appreciate the importance of this, the effect being that they could miss out on assets or income that they are entitled to.” - Charlotte Beck, Partner in Family Law at Slater Heelis
Financial disclosure can be undertaken voluntarily outside of court to facilitate negotiation or mediation. However, if you require the court’s assistance to resolve your matrimonial finances, there are some key stages of disclosure, and the court will set out a timetable for each step to be completed.
The Stages Of Financial Disclosure
Step 1: Form E
The first stage of financial disclosure is for both you and your ex-spouse to complete a Form E. This is a 35-page form that sets out every type of asset, liability, and income source.
It requires supporting evidence. For example, you will need to provide 12 months’ bank statements for all accounts in your name. This form clearly sets out both your capital (such as savings) and income (such as payment from employment or benefits).
Step 2: Questionnaires
After you and your ex-partner have exchanged your Forms E and sent them to the court, the next step is to review each other’s disclosure. If you are happy that everything has been disclosed accurately, the disclosure process is brought to a close.
However, if you think that there is some information missing (for example, if some of the required supporting evidence has not been provided) or you have questions on any of the contents (for example, if you can see regular payments to an account that you do not recognise), then this is set out in the questionnaire. At the first hearing (called a First Directions Appointment), the judge’s role includes approving questions in a questionnaire; some questions may be amended or deleted.
Both parties exchange questionnaires and must reply to the questions and provide any supporting evidence.
Step 3. Schedule of Deficiencies
This is the final stage of financial disclosure. After you and your ex-spouse have exchanged your replies to the questionnaire and sent them to court, the next step is to review the replies and any evidence. If there are still areas that you believe are incomplete or incorrect, these are set out in the schedule of deficiencies. As with the questionnaires, these are exchanged, and both parties must reply to any questions and provide any supporting evidence. Sometimes, only one party will raise deficiencies, and the other party must reply.
In some situations, it is more appropriate to apply for specific disclosure orders than raise a schedule of deficiencies, depending on the information that is being asked for. Your solicitor can advise you on the best way to get the answers you want.
If, after the replies to the schedule of deficiencies are exchanged, you think there are still issues with disclosure, then there are a number of ways to tackle this, which your solicitor can advise on (for example, asset tracing)
Contact Us
Our legal partners at Slater Heelis recognise that everyone’s financial circumstances are unique and are committed to providing clear, practical advice on navigating these issues. They will always be flexible and tailor their service to suit your needs – whether you just want some advice on completing the steps above yourself, or if you want them to prepare all the documents on your behalf.
For expert and compassionate support, contact our partner law firm, Slater Heelis, via their website or on 0330 111 3131.
Please note the information provided on this website does not constitute legal advice; it is for general informational purposes only.
What is Family Mediation?
Family mediation is a process where a neutral, professionally trained mediator who will often also be an experienced family lawyer (like those in our family law department) assists in helping you and your ex to reach an agreement. Unlike court proceedings (or arbitration), a mediator does not decide the outcome – instead, their role is to facilitate you and your ex actively resolving the relevant issues.
Where an agreement is reached, its terms can then be formalised via your family lawyer by means of a consent order made in the Family Court.
Crucially, mediation is also beneficial where previous arrangements need to be changed or updated, such as (for example) the level of maintenance between you and your ex, or the arrangements concerning your children – e.g. specific holiday arrangements, or which school they attend.
It is important to understand that mediation will not always be an appropriate means of resolving a family law issue. This is particularly the case where one of the parties has experienced domestic abuse (including coercive control) perpetrated by the other, or where there may be other safeguarding issues.
The Advantages of Family Mediation
Less Stress, More Speed: Mediation is markedly less stressful and takes significantly less time than court proceedings.
Cost-Effective: It is generally more affordable than formal court proceedings.
Flexibility: Mediators adapt to your unique circumstances. For example, you and your ex can be in different rooms during the mediation process (known as ‘shuttle mediation’)
Control and Cooperation: You retain more control over your family’s future, prioritising your children’s interests.
£500 Mediation Voucher Scheme: In many cases, the Ministry of Justice will provide £500 towards the cost of the mediation (with participating mediators).
Privacy: Unlike court proceedings (where there is an increased push for transparency) mediation is entirely private and confidential.
“As a Partner specialising in children matters I have seen first-hand how effective early mediation involvement can be, it essentially allows the parties to discuss matters openly with the knowledge that it is entirely without prejudice and that they are not going to be prejudiced by engaging in this process. The courts are also focussed on encouraging parties to deal with matters without unnecessary court involvement.” - Kaleel Anwar – Partner in Family, Slater Heelis.
Why family mediation can be the preferred choice
In family mediation, you remain in the driver’s seat. Again, no solution is imposed against your wishes. Mediators specialise in providing solutions that are typically more tailored than the outcomes that may be ordered by a judge in court proceedings and have successfully helped countless separating families achieve amicable financial arrangements and forge cooperative parenting paths.
“As a family mediator at Slater Heelis, I have observed how mediation can help separating families avoid the costs of court proceedings and avoid the entrenched positions and emotional fallout those proceedings often produce.
My colleagues and I would emphasise that mediation is more than a process – it’s a pathway to both you and your ex feeling heard, respected, and involved in arrangements concerning your children and finances.” - Kim Aucott – Consultant Solicitor and Mediator in Family, Slater Heelis.
For parents, mediation can be a great way of establishing a collaborative space for resolving arrangements for their children.
It provides the breathing room and time needed to consider what is in their best interests. Significantly, mediation does not mean being without your own legal advice, and lawyers are often instructed where parties are planning to resolve divorce and separation issues via mediation (in fact, regardless of the situation, it is always best to seek specialist legal advice from your own lawyer as early as possible).
When To Consider Family Mediation
Family mediation can be a viable way of resolving matters even if you’ve been separated for a while or if your case has progressed to court.
Save in certain circumstances (including urgency or domestic abuse) receiving information from a mediator about mediation is ‘ also an essential first step in starting most kinds of Family Court proceedings. This process involves attending a Mediation Information and Assessment Meeting (MIAM) with a mediator to assess the suitability of mediation for your case. MIAMs are now often available on a remote basis.
Key changes to proceedings (due to take effect in April 2024) will allow judges to request parties provide the court with details of what they have done to try to resolve proceedings outside of the court process, and it is expected that the importance and take-up of mediation will accordingly become even greater.
The Expansion of the Transparency Scheme
One significant benefit of mediation is its confidentiality. Opting for mediation means your family matters remain private, shielding you from potential media exposure in court proceedings.
The ongoing push for transparency in family courts, notably with the Transparency Reporting Pilot, emphasises the need for openness while maintaining privacy for vulnerable parties. This evolving landscape underscores the advantage of mediation as a private, dignified avenue for resolving familial disputes.
Conclusion
Family mediation represents an opportunity for understanding and collaboration amidst separation challenges. It preserves dignity and privacy – and empowers families to craft their future harmoniously. For expert and compassionate support, contact our partner law firm, Slater Heelis, via their website or on 0330 111 3131.
