When a marriage ends, the division of assets can all too easily become one of the most contentious aspects of divorce proceedings. At the heart of achieving a fair financial agreement lies a fundamental legal principle: full and frank disclosure of all financial assets, liabilities, income and resources.
Financial disclosure is the process of providing your spouse with full details of your financial circumstances.
It will usually be one of the first things your family lawyer will ask you to do as they will be unable to advise you properly about the likely outcome of your case without having a full picture of where both you and your spouse or partner are placed financially.
Financial disclosure will require all assets to be disclosed, including property, investments, insurance policies, pensions, business interests, and savings, as well as any debts, and income from all sources whether in this country or elsewhere in the world. It extends to trust interests, even if you have not received distributions from the trust. The obligation applies if disclosure is being dealt with voluntarily as well as if court proceedings have been issued.
Why disclosure matters
Full disclosure is critical to ensure a fair resolution. Without complete information, any settlement risks being fundamentally unfair to one party.
Beyond fairness, providing full disclosure prevents costly delays. Incomplete or misleading disclosure often results in requests for missing information, driving up legal costs for both parties and runs the risk of sowing mistrust between separating spouses during an already difficult period.
The courts take disclosure obligations seriously. Deliberately concealing assets or providing false information can result in severe consequences, including costs penalties and the potential that a judge will draw adverse inference where there may be doubt.
The Disclosure process
Standard disclosure begins with Form E, a comprehensive financial statement requiring detailed information about income, assets and debts as well as setting out your case.
Both parties must complete this form and must also provide supporting documentary evidence including bank statements covering the preceding 12 months, payslips, property valuations, and pension statements.
Following the exchange of Form E documents, parties may request additional information and documents through questionnaires.
The obligation to provide financial disclosure continues throughout the court process, including providing updating in the run up to a final hearing. If there is a significant change in finances during the process the other side should be told as soon as possible.
When Disclosure falls short
Despite these obligations, some individuals attempt to conceal assets, mislead or provide incomplete information. Tactics include transferring assets to family members, hiding assets offshore or undervaluing business interests.
If you suspect your spouse is not providing full disclosure, your solicitor will request specific additional documents or information. If reasonable requests are not complied with, the court can order disclosure, including against third parties.
Forensic accountants may be instructed to help trace assets or provide independent valuations of businesses. While this increases costs, it often proves worthwhile when significant assets are at stake.
Those entering divorce proceedings should begin gathering financial documents early. Maintain copies of all statements, valuations and correspondence, and ensure accuracy in all disclosure forms. Remember that your solicitor can only work effectively with complete information.
If you suspect non-disclosure by your spouse, document your concerns with specific examples rather than general suspicions. Early identification of potential issues allows your legal team to develop appropriate strategies for uncovering hidden assets. However, this does not entitle you to access documents belonging to your spouse that are stored securely, either physically or electronically.
Financial disclosure remains the cornerstone of any divorce settlement. While the process may seem daunting, comprehensive disclosure protects both parties’ interests and facilitates resolution of what is often the most significant financial transaction of their lives.
Contact our Family & Divorce Law experts
Laura Cotzias is a Solicitor in the Bishop & Sewell Family & Divorce teams. If you would like to contact a member of the team please call on 020 7631 4141 or email lcotzias@bishopandsewell.co.uk.
The above is accurate as at 14 October 2025. The information above may be subject to change.
The content of this note should not be considered legal advice and each matter should be considered on a case-by-case basis.
