Info & Advice

Do I have to disclose my finances during divorce if we will not be dividing our assets (such as property or pension)?

Although they are often confused, the financial aspects of divorce are separate and distinct from the legal steps process required to actually bring the marriage to an official end. Family lawyers refer to these monetary aspects as ‘financial remedies’: they result in a financial settlement, formalised with a legally-binding ‘consent order’.

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What is a financial settlement?

The term ‘financial settlement’ refers to the set of agreements you make with your former spouse regarding the division of jointly owned assets (for example, property) and any related financial arrangements (for example, child support).

This process requires a full disclosure of financial assets, which is made by completing a standard document called a Form E. With a full and accurate picture of the couple’s assets, fair division can be made, one that reflects the couple’s unique circumstances and living arrangements.

Keeping your assets or money separate

But sometimes divorcing couples simply don’t have joint assets to divide. Perhaps they have only been married a short time, had low-paying employment or they simply made it a point of principal to keep their finances entirely separate during the marriage. Typically, if the relationship then breaks down, lawyers will recommend that such couples seek a ‘clean break’ consent order. This will permanently sever all financial links between them, so no future financial claims can be made by either party if circumstances change.

In those circumstance, financial disclosure is still required. The family courts will not endorse a consent order unless they are confident it is fair and they will not be able to make such an assessment unless they know each party’s:

  • Monthly income
  • Pension valuations
  • Investments and accumulated savings
  • Interests in property

Normally supportive documentation – for example, bank statements – will not be required when applying for a clean break, but both parties are under a legal obligation to be truthful. If any evidence of information withheld later comes to light, the consent order will be set aside and the spouse in question could be at risk of prosecution.


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FAQs

We guide you through the basics of family law by answering some popular questions regarding divorce, financial issues and children disputes.

Talk to an expert


Can I change the locks? Can my partner force entry?

Can I change the locks? Technically, yes. Can my partner force entry? Technically, yes. Something to be aware of is that, if you and your…

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Can I change the locks? Technically, yes. Can my partner force entry? Technically, yes. Something to be aware of is that, if you and your husband or wife own the family home in joint names, they are not committing any crime by gaining entry to the family home. If you can no longer tolerate living with each other, it’s much better for you to agree temporary living arrangements that do not cause hostility.

If you don’t own the property jointly but you have registered a ‘homes right’ against a property you live in which is owned by your spouse, then the same response applied. You can change the locks, and the owning spouse can also gain entry to the property.


Can I take or make copies of my husband or wife’s private documents?

No. There is no right to self-help under family law in England & Wales. If you take a document belonging to your husband or wife…

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No. There is no right to self-help under family law in England & Wales. If you take a document belonging to your husband or wife spouse without their knowledge or consent, this is known as “self-help”. The court does not condone self-help to a spouse’s confidential information even where it is feared that a spouse will not provide full and frank disclosure.

Self-help takes place when a person without consent, obtains information or documentation that the other person did not give them access to. Confidential communications concerned with your spouse’s private life, including their personal finances and business dealings, are likely to be confidential. This could be if you read your spouse’s diary, open their letters or intercept their emails.

It follows that it is illegal for a party to examine, make, retain, or supply copies of confidential documentation to their solicitor where the contents of such documentation are considered to be confidential to their spouse.

If your spouse has always permitted you to look at their private communications during the relationship, you should expect this to change when your relationship breaks down. As such, you shouldn’t look at any private communications after the relationship has broken down without express permission to do so.


Do I get maintenance during and after my divorce? Do I have to pay maintenance for my spouse during and after divorce?

It depends. There are two broad types of maintenance: (a) child maintenance and (b) spousal maintenance. We’ll talk about spousal maintenance here. Have a look…

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It depends. There are two broad types of maintenance: (a) child maintenance and (b) spousal maintenance. We’ll talk about spousal maintenance here. Have a look out our children section for information on child maintenance which can be payable by the Child Maintenance Service or by Court Order, or in some cases both.

Spousal maintenance is an income order which requires one of you to make periodical payments to the other either for a fixed-term, until a defined date or, less commonly, for the rest of your lives. Spousal maintenance would be awarded where one of you is unable to support yourself i.e. your reasonable outgoings exceed your income and the other person is able to meet that need out of their income.

This sort of financial support can be reviewed if the recipient’s or payer’s circumstances change. Court’s can adjust the term for which maintenance is paid and the amount of maintenance paid.


Do I have to disclose all of my assets during a divorce?

Yes. Without doing so, neither your solicitors nor the courts will be able to assess fair settlement terms. You and your spouse have a duty…

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Yes. Without doing so, neither your solicitors nor the courts will be able to assess fair settlement terms. You and your spouse have a duty to disclose all of your assets in a manner that is full, frank and transparent. Your duty of full and frank disclosure is a duty owed to the court. You and your husband or wife will regularly be asked to sign statements of truth i.e. statements whereby you are telling your solicitors, your spouse and the court that all of the information you have included in a document or statement is true. Even if a financial remedy order isn’t imposed on you and you and your spouse agree settlement terms amicably, you will still have to complete a Statement of Information in which you are asked to confirm the full extent of your income and capital resources. You must sign this to prove that you have disclosed a full picture of your financial position. There are severe consequences for a person whose disclosure is found to be false:

  1. a financial order may be set aside;
  2. proceedings maybe be brought against you for contempt of court, which could lead to a term of imprisonment or to a fine;
  3. you may be penalised on costs meaning that you would be ordered to pay some of your husband or wife’s legal costs for financial matters;
  4. if you are deliberately untruthful in your disclosure, criminal proceedings may be brought against you under the Fraud Act 2006.

Do we have to sell the house?

Maybe. It will depend entirely on your circumstances and whether there would be enough money to meet both of your needs if you didn’t sell.…

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Maybe. It will depend entirely on your circumstances and whether there would be enough money to meet both of your needs if you didn’t sell.

Sometimes a couple live in a property that is much bigger than they really need. When they split up the court may want the house to be sold so that each can afford to live in a smaller property. This is very fact dependant, and it is a good idea to factor in the costs of buying and selling to see whether this is an affordable option.


How can we reach an amicable financial settlement?

Honesty and compromise. Often the fairest financial settlements don’t leave either party feeling particularly over the moon. Listen to the experts. If you don’t want…

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Honesty and compromise. Often the fairest financial settlements don’t leave either party feeling particularly over the moon. Listen to the experts. If you don’t want to follow their advice and simply want to agree “x” with your spouse, then you can still do so, the solicitor may just ask you to sign a disclaimer to acknowledge that they have advised you that what you are accepting might not be in your best interests. You may have considered the pros and cons and decided to cut your losses to make things go away. That’s your prerogative, but it’s much easier to be confident of your decision after speaking with a specialist family lawyer.


How do I know if there are any assets to split during a divorce?

Do some digging. A good starting place is the court document known as the Form E (Financial Statement). The Form E asks you for various…

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Do some digging. A good starting place is the court document known as the Form E (Financial Statement). The Form E asks you for various pieces of information with documentary evidence in support. It will alert you to the information needed, for example, equity in any properties in your name, savings and pensions. Look through your bank statements as a reminder of your capital, liabilities, income and outgoings.

Even if you don’t have many or any assets to split at present, it is important to still seek to resolve financial matters by way of a clean break order. This prevents you having to look over your shoulder in case your former spouse seeks a financial order from you further down the line if you acquire assets after your marriage. Divorce in and of itself does not dismiss your ex’s financial claims until a final financial remedy order is made.


How do I stop my husband or wife getting anything in the divorce?

You can’t really. The court will be looking to achieve a fair outcome when it comes to splitting your assets. Even if your husband or…

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You can’t really. The court will be looking to achieve a fair outcome when it comes to splitting your assets. Even if your husband or wife agrees to take nothing or a limited amount after your split, you still need to inform the court of your asset base, income and the specific terms of your agreement. The court will not rubber stamp an agreement that is patently unfair.

The best option to minimise claims after a marriage or civil partnership is to enter into the terms of a pre-nuptial agreement. This won’t be endorsed by the court if the terms of the agreement are unfair, but it will prevent your spouse from taking a bigger share of your assets and income than they need.


How much will it cost to split our assets during a divorce?

Positive communication and negotiation between separating parties is important where possible. The more agreement and cooperation there is, the more straightforward and less expensive the…

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Positive communication and negotiation between separating parties is important where possible. The more agreement and cooperation there is, the more straightforward and less expensive the process will be.

Are there any fixed price or fixed-fee options? Every law firm adopts a different pricing structures, so speak to a solicitor to find out more about the options they offer.


How will my finances be split after divorce?

“Fairly”. If you are married or in a Civil Partnership then you and your spouse have legal rights, duties and responsibilities in respect of one…

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“Fairly”.

If you are married or in a Civil Partnership then you and your spouse have legal rights, duties and responsibilities in respect of one another. The process that determines the way in which your property and other financial assets are divided is known as financial remedy. It is a separate process to that of divorce.

Although you won’t always have to go to court and a lot of cases settle outside of a court environment, it’s important to reference what a court would do because ultimately, if you can’t agree, that’s where you’re both headed. A court would aim to achieve a fair split of the assets. Fairness in light of all of the circumstances of the case giving first consideration to the welfare of any children.


How will my pension(s) be split or affected after divorce?

Pensions are a complex area of family law. Pensions are tax efficient investment vehicles designed to produce income and maybe some capital, during your retirement.…

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Pensions are a complex area of family law. Pensions are tax efficient investment vehicles designed to produce income and maybe some capital, during your retirement. Sometimes, the valuations you are given in respect of your pension are poor reflections of the benefits that your pensions scheme will actually provide you. Pensions can be the biggest asset after the family home. It’s therefore very important that you and your spouse seek independent financial advice from a specialist pension on divorce expert who is experienced in this area to give you advice.

Broadly speaking there are a few ways in which the court would deal with your pension(s):

  1. Pension sharing – a way for one of you to share a percentage of your pension with your former spouse, this order can’t be varied if circumstances change at a later date;
  2. Pensions offsetting – a way to offset the value of the pension against other assets. It’s important to note that £1 in a pension fund is not with £1 in cash (savings or property). There is no widely accepted way of calculating what would a fair sum to take instead of sharing in your husband of wife’s pension would be;
  3. Pension attachment (rare) – another way of taking an interest in your spouse’s pension. Pension attachment means that you would become entitled to a proportion of your former spouse’s pension income or capital without having any influence over when and how they take their pension benefits. It also means that there would be no clean break between you and your husband. Most people find that pension attachment offers little certainty as the order can be varied if circumstances change.

Is a consent order legally binding?

Yes, provided the order has been approved by a court. If this is the case, you will be provided with a formal court order stating…

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Yes, provided the order has been approved by a court. If this is the case, you will be provided with a formal court order stating your case number, your name, your husband or wife full name and the name of the court it was approved by. This could be, for example, the Family Court at Newcastle-upon-Tyne.


Is any support available for me whilst I find somewhere else to live?

You and your husband or wife could always agree that if one of you moves out, you share the costs of your mortgage and any…

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You and your husband or wife could always agree that if one of you moves out, you share the costs of your mortgage and any rental. If you can live with friends or family, that could be an option for savings costs. If you have relied on your spouse for financial support during your marriage and you suddenly find yourself unable to meet yours and your children’s essential interim needs, then you may be able to ask for maintenance pending suit (“MPS”). If you are in a predicament of real need and your spouse can afford to meet the shortfall between your income and reasonable outgoings, then your spouse may be ordered to pay maintenance pending suit until the overall financial matters are resolved.

You will only be able to apply for MPS either when or after a divorce application is filed at court.

MPS is known as an order pending the outcome of proceedings in a Civil Partnership context.


We’re married, who gets the family home?

If you are married, then you and your husband or wife have legal rights, duties and responsibilities in respect of one another. People’s main concern…

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If you are married, then you and your husband or wife have legal rights, duties and responsibilities in respect of one another. People’s main concern when getting divorced is how they will cope financially and how the assets and debts of the relationship will be dealt with. The process that determines the way in which your property and other financial assets are divided is known as financial remedy. It is a separate process to that of divorce.

Although you won’t always have to go to court and a lot of cases settle outside of a court environment, it’s important to reference what a court would do because ultimately, if you can’t agree, that’s where you’re both headed. A court would aim to achieve a fair split of the assets. Fairness in light of all of the circumstances of the case giving first consideration to the welfare of any children. In deciding what is fair the court will consider:

  1. yours and your spouse’s resources – property, capital, income, earning capacity;
  2. yours and your spouse’s needs, obligations and responsibilities;
  3. your marital standard of living;
  4. yours and your spouse’s respective ages;
  5. how long you were married for;
  6. any physical or mental disabilities;
  7. yours and your spouse’s contributions to the welfare of the family;
  8. yours and your spouse’s conduct (not ordinary bad behaviour).

There’s no set formula for how to assess fairness.


We’re not married, what are my rights when splitting up?

People live together as couples without anything formal in place for various reasons, this is called cohabitation. Without any legal relationship such as a marriage…

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People live together as couples without anything formal in place for various reasons, this is called cohabitation. Without any legal relationship such as a marriage or civil-partnership in place, either of you are free to stay or go without having to go through any formal process. Unmarried couples often need to make arrangements regarding living situation, childcare and property.

Cohabitants have very different rights under family law when it comes to property and financial matters. Common law marriage is a myth. If you’re not married or in a civil partnership, the law on property rights and financial settlements on separation is completely different. There is no legal requirement for cohabitants to be ‘fair’ when the relationship breaks down. By way of example, if you owned the property that you and your partner had lived in for the last 10 years in your sole name and you had no children together, your partner would have no legal claims against your property whatsoever. As there’s no contract of marriage in place and you don’t have any children, neither of you has any legal rights, responsibilities or duties in respect of the other person. Owning property in joint names and having children changes this position.


We’ve agreed terms on how to split our finances, how do we formalise our agreement?

In a consent order. Agreeing terms for settlement with your spouse is half the battle, but those terms must be approved by a court in…

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In a consent order. Agreeing terms for settlement with your spouse is half the battle, but those terms must be approved by a court in a consent order to be legally binding and enforceable. We call them ‘consent orders’ because they are agreed by you and not imposed on you by a third party. A judge must still be satisfied that the terms of your financial settlement are fair.


What documents do I need to have in order to discuss financial matters?

Quite a few. A good starting place is the court document known as the Form E (Financial Statement). The Form E asks you for various…

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Quite a few. A good starting place is the court document known as the Form E (Financial Statement). The Form E asks you for various pieces of information with documentary evidence in support. It will alert you to the information needed, for example, equity in any properties in your name, savings and pensions.


What happens if we go to court?

Things will inevitably become more expensive and sometimes more acrimonious, but this can sometimes be the only way certain couple’s can resolve matters. Remember you…

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Things will inevitably become more expensive and sometimes more acrimonious, but this can sometimes be the only way certain couple’s can resolve matters. Remember you can continue negotiating and trying to reach a settlement during contested proceedings but you have the safety net of knowing that there will be an end date to your back and forth when the court will make a final financial remedy order that they consider to be fair in light of all of the circumstances of your case.

The court timetable will usually look something like this:

  1. Filing of a financial application using a Form A;
  2. Exchange of Financial Disclosure using Forms E;
  3. Ability to raise questions of your husband of wife’s disclosure using Questionnaires;
  4. A First Directions Appointment (“FDA”);
  5. A Financial Dispute Resolution Hearing (“FDR”);
  6. A Final Hearing.

What if I’m not getting anywhere in voluntary negotiations but don’t want to take my husband or wife to court?

That’s tricky. If you haven’t already, you could try mediation, collaborative law or arbitration. Be honest with yourself as to why you don’t think negotiations…

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That’s tricky. If you haven’t already, you could try mediation, collaborative law or arbitration. Be honest with yourself as to why you don’t think negotiations are getting anywhere. Is your spouse being obstructive? Are you being difficult? Are either of you not ready to move on? Could you use counselling? Is there a particular asset that either you or your spouse don’t want to let go of despite it being fair to do so? Do you need legal advice or representation? Do you need to issue formal proceedings to be taken seriously?


What if my husband or wife is hiding assets?

You and your spouse have a duty to disclose all of your assets in a manner that is full, frank and transparent. The court wants…

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You and your spouse have a duty to disclose all of your assets in a manner that is full, frank and transparent. The court wants you to put all of your cards on the table.

You will usually disclose your financial information using the Form E. Following financial disclosure by way of Forms E, you and your husband or wife are able to raise questions of each other’s disclosure by drafting a questionnaire. You both need to reply to each other’s questions as far as they are proportionate and this usually is an effective way to locate hidden assets. A court can also be asked to order that a party discloses specific information and documentation.

If your matter is more complicated than first meets the eye, then it is always worth considering whether to instruct a forensic accountant to review your husband or wife’s disclosure. Ultimately, if it is found that your husband or wife deliberately hid assets during financial negotiations, the consequences can be severe:

  1. a financial order may be set aside;
  2. proceedings maybe be brought against you for contempt of court, which could lead to a term of imprisonment or to a fine;
  3. you may be penalised on costs meaning that you would be ordered to pay some of your husband or wife’s legal costs for financial matters;
  4. if you are deliberately untruthful in your disclosure, criminal proceedings may be brought against you under the Fraud Act 2006.

What if my spouse dies during divorce proceedings? What if my husband or wife dies before we have resolved financial matters?

Do I get more money we hear you say? The answer to this depends on a few variables: has the final order of divorce been…

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Do I get more money we hear you say? The answer to this depends on a few variables: has the final order of divorce been pronounced as yet? Did your husband or wife leave a will?

Family law solicitors will usually recommend that you do not apply for the final order of divorce until overall financial matters have been resolved by way of a final financial remedy order. If you or your spouse has a pension, you would benefit from a widow or widower’s pension in the event that either of you die before the final order of divorce is made (before your marriage is terminated).

When the final order of divorce is pronounced, you are no longer married to each other and so neither of you will benefit from any widow or widower’s pension or various other financial benefits that you would ordinarily receive as a result of your status as a spouse.

Divorce is a life altering event and so people should consider changing their will or creating a will in contemplation of divorce. If your spouse has left a will that leaves you with nothing, you may be able to make a claim under the Inheritance (Provision for Family and Dependants) Act 1975. This is not the most straightforward area of law, so get some advice.


What is a consent order?

A consent order is a full and final court order embodying the terms that you and your spouse agree between yourselves, at mediation or through…

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A consent order is a full and final court order embodying the terms that you and your spouse agree between yourselves, at mediation or through your solicitors. Once approved, a consent order cannot easily be challenged. The starting point is that it should be upheld.

A consent order is strongly recommended when trying to finalise your divorce and divide your financial assets. This is because it is very difficult to re-open a consent order years after it has been approved. If you agree terms in an informal agreement that is not approved by a court, your spouse could apply to the court further down the line for financial provision. It can be expensive to defend an unwarranted “second bite at the cherry” but, by not entering into a consent order and / or clean break order, you could be leaving yourself exposed.

Specialist divorce and family law lawyers will be well equipped to help you draft an order in the correct manner.


What is a pre-nuptial agreement?

This is a document which sets out what money each party with exit the marriage or civil partnership with if the relationship breaks down. The…

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This is a document which sets out what money each party with exit the marriage or civil partnership with if the relationship breaks down. The document usually deals with property, pensions, maintenance and savings. It may also deal with other things like pets, jewellery and personal possessions. These types of agreement aren’t binding in the courts of England and Wales but they can be highly persuasive if they are seen to be fair at the time the parties split up.

Ideally both parties would enter into the agreement more than six weeks before their wedding or civil partnership takes place. It is ideal, but not mandatory for each party to take specialist legal advice from a family solicitor or barrister.

The more evidence there is that the parties both understood the terms of the agreement they signed, the more likely the courts will be persuaded to put into effect the terms of the agreement.


What is fair when splitting assets after divorce?

It is fairness in light of all of the circumstances of the case giving first consideration to the welfare of any children. In deciding what…

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It is fairness in light of all of the circumstances of the case giving first consideration to the welfare of any children. In deciding what is fair the court will consider:

  1. yours and your spouse’s resources – property, capital, income, earning capacity;
  2. yours and your spouse’s needs, obligations and responsibilities;
  3. your marital standard of living;
  4. yours and your spouse’s respective ages;
  5. how long you were married for;
  6. any physical or mental disabilities;
  7. yours and your spouse’s contributions to the welfare of the family;
  8. yours and your spouse’s conduct (not ordinary bad behaviour).

There’s no set formula for how to assess fairness. It’s important to seek advice regarding your specific circumstances.


Who drafts the consent order?

A family law solicitor, mediator or barrister should be asked to draft a consent order on your behalf. This is what they’ve been trained to…

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A family law solicitor, mediator or barrister should be asked to draft a consent order on your behalf. This is what they’ve been trained to do. Legal terminology can be extremely complicated and, once approved, your order will be legally binding.


Who gets the pet?

Who gets the cat or dog? It depends. It might seem strange that we’re talking about this under finances but, yes, a pet is considered…

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Who gets the cat or dog? It depends. It might seem strange that we’re talking about this under finances but, yes, a pet is considered an asset when you divorce. The same principles that apply when dividing your capital and income, will apply when deciding who gets your pet.


Will dating someone else whilst agreeing how to split our assets impact my case?

Serious new relationships during divorce can impact upon financial negotiations and settlements. Serious new relationships after divorce can impact on the financial provision that you’re…

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Serious new relationships during divorce can impact upon financial negotiations and settlements. Serious new relationships after divorce can impact on the financial provision that you’re receiving from your former spouse. During financial proceedings you’ll be asked about your intentions when it comes to cohabiting or remarrying a new partner. You have to be honest about those intentions.

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