What Happens if Your Ex Refuses to Disclose Their Finances During Divorce?

Divorce can be difficult enough without having to worry about whether your ex-partner is being honest about their finances.

When separating, one of the biggest concerns people have is whether their former spouse is hiding money, failing to provide documents or refusing to disclose their financial circumstances altogether.

So, what happens if your ex refuses to provide financial disclosure, and what can you do about it?

What Is Financial Disclosure in Divorce?

When dealing with the financial aspects of a divorce, both parties are expected to provide full and frank financial disclosure.

This means being open and honest about their financial circumstances, including:

• Property owned, whether individually or jointly.
• Bank accounts, savings and investments.
• Pensions.
• Mortgages, loans and other debts.
• Income, including employment and self-employment.
• Business interests and other assets.

Financial disclosure is important because it allows both parties to understand the matrimonial finances and negotiate a fair financial settlement.

Without this information, it can be extremely difficult to establish what assets are available and how they should be divided.

Does My Ex Have to Provide Financial Disclosure?

If you are attempting to reach a financial agreement voluntarily, your ex cannot generally be forced to provide financial disclosure unless court proceedings are issued.

However, we would strongly recommend that both parties exchange financial disclosure before agreeing to a settlement.

Even if you believe you know everything about your ex's finances, there may be assets, pensions or liabilities that you are unaware of.

If financial remedy proceedings are issued, both parties will be required to provide financial disclosure, usually by completing a document known as Form E.

This is a detailed financial statement which requires supporting documents, such as bank statements, pension valuations and property valuations.

What if My Ex Refuses to Complete Form E?

If financial remedy proceedings have been issued and your ex refuses to complete their Form E or provide the necessary supporting documents, the Court has powers to intervene.

The Court can make directions requiring your ex to provide the missing information by a specified date.

If they continue to refuse, the Court may consider making further orders, including costs orders or, in appropriate circumstances, sanctions for failing to comply with Court directions.

It is important to understand that simply refusing to cooperate will not prevent financial remedy proceedings from progressing indefinitely.

What if I Think My Ex Is Hiding Money or Assets?

Unfortunately, concerns about hidden assets are not uncommon during divorce proceedings.

You may suspect that your ex has transferred money to another account, undervalued a business, failed to disclose savings or deliberately reduced their income.

If you believe that your ex is not being honest about their finances, there are steps that can be taken.

For example, following the exchange of Forms E, it is possible to raise a questionnaire requesting further information and documents.

This can include asking questions about unusual transactions, missing bank statements or inconsistencies within their financial disclosure.

In certain circumstances, it may also be necessary to obtain expert evidence, particularly where there are businesses, properties or complex financial arrangements involved.

The Court can also draw adverse inferences where there is sufficient evidence that a party has failed to provide an honest account of their finances.

However, this does not mean that the Court will automatically assume your suspicions are correct. It is important to identify the concerns and obtain evidence wherever possible.

Can the Court Penalise My Ex for Hiding Assets?

Yes. Deliberately failing to disclose assets or misleading the Court about your financial circumstances can have serious consequences.

Depending on the circumstances, the Court may:

• Order further financial disclosure.
• Make costs orders against the party who has failed to cooperate.
• Draw adverse inferences about their financial circumstances.
• Take the failure to disclose into account when determining an appropriate financial settlement.

In some circumstances, if a financial order has already been made and it is subsequently discovered that one party deliberately concealed significant assets, it may be possible to apply to have that order set aside.

The consequences will depend on the individual circumstances, including the nature of the non-disclosure and its significance to the financial settlement.

Should I Agree to a Financial Settlement Without Disclosure?

We would generally advise against agreeing to a financial settlement without first understanding the full financial circumstances of both parties.

Whilst it may be tempting to accept an offer simply to bring matters to an end, doing so could leave you in a financially vulnerable position.

For example, you may agree to retain the family home without appreciating the value of your ex's pension, or accept a lump sum without knowing the full extent of their savings or investments.

Once a financial consent order has been approved by the Court, it can be extremely difficult to revisit the settlement.

This is why obtaining appropriate financial disclosure and independent legal advice is so important.

What Should I Do if My Ex Refuses to Cooperate?

If your ex is refusing to provide financial information, the first step is usually to request the disclosure formally and explain why it is necessary.

If they continue to refuse, you may wish to consider mediation or solicitor-led negotiations to try to resolve the situation.

However, where voluntary disclosure is unsuccessful, it may be necessary to issue financial remedy proceedings so that the Court can make directions and ensure that the matter progresses.

Although Court proceedings are not always the preferred option, they can provide a structured process where one party is unwilling to cooperate.

How Can Harrington Family Law Help?

At Harrington Family Law, we understand how frustrating and worrying it can be when you feel that your ex is not being honest about their financial circumstances.

We regularly assist clients with financial matters arising from divorce, including financial disclosure, pensions, property, business interests and more complex financial disputes.

Our aim is always to help you reach a fair financial settlement whilst avoiding unnecessary conflict and Court proceedings wherever possible.

However, where Court intervention is necessary, we can guide you through the process and help you take the appropriate steps to protect your financial position.

If you are going through a divorce and are concerned that your ex is refusing to disclose their finances, contact Harrington Family Law to arrange a free 30-minute telephone consultation.