Financial Disclosure i.e. The Form E: What do I have to disclose during financial proceedings?

When going through a divorce, transparency is essential, especially when it comes to finances. One of the most critical tools in this process is Form E, a legal document used to provide full and frank disclosure of each party’s financial situation.

What Is Form E?

Form E is a sworn financial statement required in financial remedy proceedings. It provides a comprehensive overview of a party’s income, assets, liabilities, and financial needs, along with supporting documentary evidence. The purpose of Form E is to give both the court and the other party a clear and complete financial picture before any financial settlement or court order is made.

What Does Form E Include?

Form E is divided into five sections:

Section 1: Personal Information

This section gathers general personal details, such as your name, date of birth, and contact information.

Section 2: Assets, Income & Liabilities

Often the most detailed part of the form, this section outlines your financial landscape. It includes:

• Property ownership
• Bank accounts
• Investments
• Pensions
• Debts and liabilities

Each entry must be supported by evidence such as bank statements and mortgage redemption statements. The grey box in each section outlines and confirms the evidence that is required.

Section 3: Financial Needs

Here, you’ll set out your monthly and yearly living expenses, including housing, utilities, food, insurance, childcare, and discretionary spending. This helps the court assess what each party needs moving forward, especially for housing and basic living costs.

Section 4: Narrative Summary

This section allows you to explain any relevant background or circumstances, including:

• Significant financial contributions
• Allegations of financial misconduct or bad behaviours
• Any other factors that might affect a fair settlement

It provides context that might not be captured through numbers alone.

Section 5: Summary & Proposed Outcome

Finally, you’ll summarize your financial position and outline what kind of order or settlement you’re seeking, such as a clean break or spousal maintenance. While a clean break is often favoured, it’s not suitable for every situation.

When Do You Complete a Form E?

Form E can be relevant at various stages of the divorce and financial settlement process:

• Voluntary:
  Parties are encouraged to provide full financial disclosure as early as possible, even before any court proceedings commence. It will also look more favourable if the parties engage in voluntary financial disclosure, as opposed to being ordered to do so by the court.
• By Court Order:
  In contested proceedings, the court will order both parties prior to the first hearing, to complete and exchange Form Es by a specific deadline.

Is Completing a Form E Mandatory?

If you are involved in court proceedings, completing Form E is mandatory. It is a legal requirement, and deadlines are set by the court. Failing to provide full financial disclosure can weaken your position and may even result in costs orders or adverse inferences being drawn.

If you are not in court, you are not legally required to complete a Form E. However, without full disclosure, your solicitor cannot properly advise you on what constitutes a fair division of assets. Additionally, the court may reject any financial settlement where it doesn’t appear fair or there is insufficient information.

Where you agree settlement by Consent Order, Form D81 must be submitted to the court. This outlines each party’s financial position before and after the proposed settlement. However, without full disclosure, you may be putting yourself at risk of an unfair settlement if you do not seek the full information you are entitled to.

Final Thoughts

Form E is more than just paperwork, it is a foundation for fairness. Whether you’re aiming for a clean break or ongoing financial support, full and accurate disclosure is essential to ensure an equitable resolution.

This is not legal advice; it is intended to provide information of general interest about current legal issues.