Family Law Insights: Understanding Form E in divorce

John Randle, Head of Family Practice

John is a specialist family solicitor with over 40 years’ experience dealing with complex, high value divorce cases.

The role of financial disclosure in divorce

While divorce ends your legal marriage, it does not end your financial marriage. Before you are released from any future claims made by your ex, you will need to apply for a consent order (also known as a financial order). Even if you and your ex have amicably settled the financial arrangements surrounding your divorce, these arrangements will not be considered legally binding unless approved by the courts.

Before a court can make any order in relation to the proposed financial settlement, it will need to ensure that the proposal is fair on both parties. To establish this, the court will need a clear picture of both parties’ financial position. This financial picture is provided via the Form E.

What does Form E cover?

Form E covers income and assets as well as debts, needs and expenditure of both parties and any relevant children. You will be asked to provide documentary evidence in support of your assessment, including bank statements, proof of income, proof of other assets and their valuations. If you have initiated divorce proceedings, but have not yet reached financial settlement, it is important to start thinking about your Form E disclosure as soon as possible. This includes requesting copies of documents that you might not have, such as pension CEVs (cash equivalent values).

When is Form E required?

You do not need to complete a Form E to get divorced. However, there are situations in which you will be required to complete Form E disclosure. These include:

• If either party requests a financial settlement order through the court. If an application for a financial remedy (settlement) order is made to the court by either party, the court will automatically order both parties to disclose their finances and assets fully.
• If a divorcing or dissolving party wishes to make a voluntary financial arrangement legally binding to prevent future claims being made against their finances. In such cases, disclosure can be effected by a voluntary Form E without the need for a court order.

Form E disclosure is often used even where there is no legal requirement to do so. This is because the rigour of the Form E can help clarify both parties’ financial positions and ensure nothing is overlooked. For example, divorcing couples may wish to conduct a full disclosure of their assets before deciding how to separate financially. It can also be used when the parties are in mediation with a view to agreeing a financial settlement or when they wish to exchange financial disclosure through their solicitors with a view to negotiating a financial settlement.

What happens after Form E is completed?

After both parties’ Form Es are completed and exchanged, hearings are held in which the parties attempt to reach an agreement. If agreement cannot be reached, the dispute will be listed for a final contested hearing. In the initial hearing, known as a First Directions Hearing, a judge will assess the information you have provided in your Form E and determine if any other information is needed to ensure that a successful settlement agreement can be reached.

Do I need a solicitor to complete a Form E?

While much of Form E is self-explanatory, there are portions of the form that even financially sophisticated individuals can find tricky. This is especially true where it comes to calculating your pensions entitlements or the value of share options.

It is common for divorcing couples to disagree on matters. For example, how do you value the family home? Does your spouse agree with your valuation? It can be useful to have solicitors involved in this process to offer guidance and minimise disagreements. A solicitor will also be able to check that the terms of any agreement or proposal are reasonable and advise you as to what a suitable proposal should look like.