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04 January 2016

Potential Errors in Thousands of Divorce Settlements

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    • Family & Divorce Law
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04 January 2016

Potential Errors in Thousands of Divorce Settlements

Shortly before Christmas The Guardian reported that a problem had been identified with the Form E on the Ministry of Justice website. The error could mean that the assets of many people involved in divorce proceedings over the last twenty months have been miscalculated, and result in financial settlements having to be reopened.  

The Form E is the court form which is used by people going through divorce proceedings to disclose details of their assets, income and liabilities, at a preliminary stage of financial remedy proceedings. It is also used by solicitors in negotiations and by family mediators during the mediation process. 

The form contains a table which totals the value of a person’s assets (properties, investments, savings etc) and deducts their liabilities (overdrafts, credit cards, bank loans etc) to arrive at a grand total of net assets/liabilities. The problem appears to be that the software used by the Ministry of Justice failed to deduct the liabilities from the value of the assets, and therefore gave the impression that many people using the online form were more wealthy than they actually were. It is likely that many couples negotiated settlements, and judges made orders, on the basis of the incorrect figures.  

The error was eventually spotted by a legal adviser, who reported the issue to the Ministry of Justice, but was initially met with a defensive and slow response. It was only after repeated promptings that the error was rectified. Anyone who thinks that they may have been affected by the error should contact formE@hmcts.gsi.gov.uk

 

Potential Errors in Thousands of Divorce Settlements

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Expert Commentary

Joanna Toloczko, family law expert at Mullis & Peake LLP commented

“Although it is a matter of concern that the Ministry of Justice had a form containing such a basic error on its website, and around 20,000 forms were downloaded during the relevant period, people should not worry excessively or panic. If you think you may have been affected, contact your solicitor or look at your Form E, if you have kept a copy. 

Most solicitors do not rely on the Ministry of Justice software but use commercially produced forms and software. Also, although the Form E is used as the starting point for disclosure, solicitors and mediators prepare schedules of assets, income and liabilities from the information disclosed on the forms and it is likely that any errors would be picked up at that stage. 

Unfortunately, the people who are most vulnerable and likely to have been affected are those who represented themselves in the proceedings.” 

For more information please contact Joanna Toloczko at joannatoloczko@mplaw.co.uk or on 01708 784044.

 

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