Full and frank disclosure: Everything to know + what Is Form E?
Facing full and frank disclosure, especially when completing a Form E, can feel daunting during the legal process.
This guide explains what is expected during the process and aims to make the requirements of divorce financial disclosure clear.
What is a Form E?
The Form E is the form prescribed by the court for parties to financial remedy proceedings to use to disclose their personal circumstances, assets, income and liabilities.
Solicitors often use Form E before court proceedings begin, as it is an effective way to gather comprehensive financial information ahead of negotiations.
It is important to understand what is required when completing Form E, as Mediators also use this form in property and finance mediations.
The form is available on the government website for reference.
The Importance of Completing the Form E Correctly
If you are required to complete a Form E for the likes of a financial declaration in divorce, it is very important that you complete the form accurately.
Failure to provide full and accurate disclosure may result in any order the court makes being set aside.
If you are found to have been deliberately untruthful when completing the form, criminal proceedings may be brought against you for fraud under the Fraud Act 2006.
The contents of the form must be confirmed by a statement of truth. Proceedings for contempt of court may be brought against a person who makes a false statement in a document verified by a statement of truth.
Orwins’ Top Tips for Completing the Form E
Form E is a lengthy document, running to 30 pages and requiring a significant number of supporting documents; we understand this can seem overwhelming at first, but legal help can be the saving grace to take the weight off your shoulders.
Before you begin however, breaking the process down into steps can make it more manageable, the following tips aim to help when completing Form E in divorce proceedings.
It may be that you have been asked to complete a first draft of your Form E with a view to your solicitor preparing the final document or it may be that you are preparing the Form yourself; whatever it is, our top tips for completing the Form E are as follows.
#1 Schedule Time to Deal with the Form E Completion
Completing financial documentation such as Form E requires time and attention. It is not a task that can be completed quickly alongside other responsibilities.
It can be helpful to set aside two separate two-hour periods: one to gather the necessary documents and another to complete the form itself.
#2 Turn to Page 29 at the Back of the Form First
This page includes a checklist of documents that must accompany Form E.
Work through the list and collect each document, as the information will be needed to complete the form.
Some documents may need to be requested, such as a valuation of the family home or the cash equivalent value of a pension.
The list includes the following:-
● A valuation and mortgage statement for the family home and any other properties;
● Copies of statements for the last 12 months for all of your personal bank, building society and national savings accounts;
● Latest statement or dividend counterfoil relating to any investments;
● A surrender valuation for relevant life insurance policies;
● A recent statement showing the cash equivalent value of each of your pensions;
● your P60 for the last financial year together with your last three payslips and a P11D, if you receive benefits in kind;
● copies of your tax returns and assessments for the last two years;
● If you are a business owner, you must provide copies of the business accounts for the last two financial years together with an estimate of the current value of the business.
Other documents may also be useful to confirm your financial position.
#3 It is always better to give too much information than not enough
If you have a solicitor, they will review and organise the information for you. It is important to remember that you may be questioned about the contents of Form E at a final hearing, even an innocent omission could affect your credibility.
If you are preparing a first draft of Form E for your solicitor, it is best to provide all necessary information and documents together and without delay.
If information is missing, your solicitor will need to review Form E and contact you for the outstanding details. As most solicitors charge by the hour, repeated reviews and correspondence can increase your costs.
#4 Remember, the Form E Is the Form for You to Provide Disclosure Regarding Your Financial Circumstances.
You do not need to complete information regarding any assets which are solely owned by your spouse, nor do you need to complete any information regarding their income and/or liabilities. The form should not be used to set out your case.
When considering your monthly income needs, start by reviewing your bank statements and listing all regular direct debit payments.
Next, assess average outgoings for items such as food, clothing, cleaning materials, and toiletries, remembering to include any monthly expenses paid in cash.
Many solicitors provide a template budget form to assist with this process.
#5 Always be realistic when assessing your income needs
Judges prefer budgets that are realistic and sensible. Avoid preparing a monthly budget that exceeds the family income during the relationship, but do not overlook or underestimate any items.
Please provide all figures on either a monthly or annual basis. Do not mix monthly and annual figures.
Get in Touch If You Need Help with the Form E
A well-prepared Form E helps professionals understand the family finances and can support negotiations and early settlement.
Although preparing Form E can seem daunting, it is worth taking the time to ensure the document is accurate and comprehensive.
For assistance with Form E, including the statement of truth and asset disclosure, contact Orwins today.
