According to new research from Investec Wealth and investment (UK), in a survey of people who divorced in the last ten years it was found that one in four admit to not telling their ex-partner about the full extent of their wealth and assets during a breakup.
This is a significant concern for many people going through a divorce, particularly when their ex-spouse was the one who managed their finances during the course of the marriage.
Starting point for financial negotiations
The starting point for financial negotiations during a divorce is that each person must provide full and frank financial disclosure. It is only once there is full transparency about the extent of and value of the assets that an agreement can be reached in relation to the division of the matrimonial assets. Without this information it is difficult for a lawyer to ascertain if the agreement is fair and reasonable.
Ways to disclose financial information
There are several ways that full and frank financial disclosure can be undertaken. A standard form called a Form E can be used which requires mandatory supporting documents such as bank statements, pension valuations, mortgage statements and pay slips. It is important that the parties provide supporting documentation to verify the figures they are providing.
What happens if parties cannot agree?
If the parties are unhappy with the level of information, then it is possible for a questionnaire to be prepared to try and address any gaps. It is important to obtain legal advice in relation to what financial information needs to be obtained and the full range of options available to address any information that has not been disclosed.
The Courts take the non-disclosure of assets very seriously and can grant harsh sanctions against a party that does not engage fully with this process. The courts also have extensive powers, for example, to order that information is obtained directly from third parties such as banks. It is therefore vital that both parties are open and honest about their finances when trying to reach a fair resolution of their division upon divorce. Once a settlement has been reached, if it comes to light that one person has failed to provide full disclosure then there is a risk that the settlement could be overturned.
How Pinney Talfourd can help
Pinney Talfourd’s team of specialist family lawyers is ranked Tier 1 by the Legal 500, a mark of high quality and expertise. We can guide you through financial negotiations in divorce proceedings, providing the best possible advice tailored to your unique circumstances.
We offer evening and weekend appointments, as well as a free initial 30-minute consultation for all new family law enquiries. Please get in touch to book your appointment on 01708 229 444.
More information
At Pinney Talfourd, our specialist divorce lawyers are members of Resolution, dealing with many matters using a collaborative approach. We want to help our clients to achieve a fair settlement. If you are considering a divorce and want to find out some more information, please contact a member of our family team to book a free initial consultation.