In order for solicitors to advise as to an appropriate financial settlement within divorce proceedings, or for a Judge to make a Financial Order upon an application made to the court, there first needs to be an exchange of full and frank financial disclosure between the parties, so that there is an accurate picture of the financial assets and resources available to be divided.
Form E is the standard financial statement used to provide financial disclosure in divorce proceedings. The aim is to provide transparency so that informed decisions can be made and fair outcomes can be achieved.
Form E is compulsory to provide financial disclosure pursuant to a Court Order in Financial Order proceedings issued by Form A, or it can be exchanged voluntarily where a couple are trying to reach an amicable agreement through non-court dispute resolution such as solicitor-led negotiation, collaborative law or mediation.
Section 1 of the Form E is used to provide general information and personal details such as your full name, date of birth, date of separation, date of marriage, the names and ages of children and details of any health issues.
Section 2 of the Form E is used to provide detailed information about capital assets such as property, bank accounts and investments, business assets, pensions, debts and income from employment, self-employment or other sources.
Section 3.1 of the Form E requires detailed information as to current and estimated future income needs and expenses. This needs to be carefully considered and realistic.
If a Form E is ordered to be produced by the Court, the whole form needs to be completed including the narrative parts beyond section 3.2 which include details including capital needs, standard of living and contributions made during the marriage.
If Form E is being used to provide financial disclosure on a voluntary basis, it is usually agreed that it will only be completed up to section 3.1 and the more narrative sections will be left blank.
Specified financial disclosure documentation needs to be attached to Form E such as property values, mortgage redemptions statements, bank statements (usually for the last 12 months), business accounts, tax returns, pay slips, P60s and statements showing the Cash Equivalent Value of pensions. It is important that all relevant evidence is provided.
A Form E is completed by each party and simultaneously exchanged, usually by email, so that both people can see each other’s information.
Once Forms E have been exchanged, each party has the opportunity to raise questions in respect of any outstanding financial disclosure by way of a Questionnaire to seek clarification or missing information. Delays can occur if full financial disclosure is not given in Form E, which can increase costs.
Following the exchange of Forms E the duty to give updated financial disclosure continues until a Financial Order is made by the Court.
A related form called Form E1 is used for different types of financial applications such as claims under Schedule 1 of the Children act 1989. Form E2 is used upon an application to vary a Financial Order.
Form E contains a Statement of Truth that you have complied with your legal duty to give full and frank financial disclosure. Signing a Statement of Truth that contains false information can amount to contempt of court, which is punishable by anything from a fine to imprisonment.
If the Court believes someone has not provided full financial disclosure it can draw adverse inferences and assume a party has more assets or income than they declared. This can lead to people being treated as if they have those assets or income – for example, there have been cases where one person has stated that they do not earn any income, but the Court has taken the view that the person is able to earn an income and so treats them as if they are receiving that income. Costs Orders can also be made against a party who does not give full financial disclosure. The court can also set aside Financial Orders if it later transpires that full disclosure was not made. Any application of that nature realistically needs to be made within a relatively short time period of the final Financial Order however.
Form E is a lengthy document which needs to be comprehensively completed. It may take some time to gather together all of the evidence which needs to be attached, especially in relation to pensions as certain pension companies / trustees can take many months to supply Cash Equivalent Values.
It is essential that Form E is completed correctly and contains all of the necessary information and documentation to fully support your case.
Our specialist family lawyers can assist you to complete your Form E or examine the other party’s Form E and advise you about financial settlement both outside the Court process and through financial proceedings.