If you are going through a divorce certain terms become familiar, and one of these is the Form E. This is a legal document that lists both you and your spouse’s financial details, such as your capital, income, assets, earning potential and pension information. Also referred to as a “financial statement”, in addition, it incorporates each parties’ financial needs as well as those of any children. In this article, we explore what happens if a party refuses to complete it and what can be done to ensure it happens.
If you are going through a divorce certain terms become familiar, and one of these is the Form E. This is a legal document that lists both you and your spouse’s financial details, such as your capital, income, assets, earning potential and pension information. Also referred to as a “financial statement”, in addition, it incorporates each parties’ financial needs as well as those of any children. In this article, we explore what happens if a party refuses to complete it and what can be done to ensure it happens.
If you have a family law issue and require legal advice to understand your options, contact specialist divorce solicitor Jemma Slavin of Stowe Family Law. Regional Director at this well-respected specialist family law firm, she is committed to offering a bespoke service to her clients which focuses on their specific needs and objectives.
Is completing a Form E compulsory in divorce proceedings?
A Form E is not a compulsory part of getting divorced, and in fact, there are many couples who come to an agreement themselves about their finances without having gone near one. However, this is not the norm, and in the event you and your ex cannot reach a financial settlement, you will be legally required, as part of court proceedings, to complete and submit a Form E.
If a party refuses to fill in a Form E when ordered to do so by the court, they may face significant and serious penalties, including substantial fines and, in serious cases, prison.
So, while completing a Form E is not always a necessary part of reaching a financial settlement during divorce, it is a mandatory stage if financial proceedings are issued. This is because it provides the court with vital details by setting out each party’s entire financial position. Many people underestimate the importance of the Form E, but it really is the backbone of the case and provides a springboard from which to negotiate a financial settlement.
In addition, where proceedings have been issued and the Form E is not provided in good time, there is a real risk of the first hearing being ineffective. The reasons for this are as follows:
- You will be unaware of what assets are available for division
- You will be in the dark about the other party’s position
- You will be unable to agree the value of jointly owned assets
- If you don’t know what the assets are, it is impossible to try to ascertain what directions you need to ask the court for, including whether a joint valuation is needed
- You cannot prepare the documents required by the court which will cause unnecessary delay
- It will be extremely difficult to bring the matter to an early conclusion by making open or without prejudice offers
- The non-refusing party will incur unnecessary additional costs because of all the extra work that will need to be carried out
In the absence of a Form E, if the hearing cannot go ahead as planned and the other party has incurred costs in preparation, it is likely that the non-complying spouse will be ordered to pay the other’s costs.
What happens if a spouse refuses to complete the Form E?
The court takes an extremely dim view of anyone who wilfully provides inadequate information, or refuses to complete a Form E without reasonable excuse. Whilst a judge is likely to allow them additional time to collate the required information and documents, they will not accept persistent delaying tactics and obfuscation.
If someone is purposely attempting to frustrate the financial process or is generally being uncooperative when it comes to completing the Form E, there are steps that can be taken. Initially, you could contact the court and inform them of your ex’s refusal to complete the form. From here, the court may decide to issue a costs order against a refusing party which could result in them paying part, or all, of your court costs. Generally, this provides enough of a financial impetus to encourage the refusing party to complete the form because of the potential of serious consequences.
The refusing party may receive a fine, although the longer they avoid completing and submitting the form, the more serious the penalty becomes, to the extent that persistent refusal could lead to a term of imprisonment, although in reality, this is rare.
Penalties may also be handed down if the other party does not properly complete the form, or fail to complete it at least 35 days before the first court appointment. Purposely leaving out financial information can be even more unhelpful and disruptive than not submitting the form at all.
How will I know if my ex completes the Form E accurately?
If you have a solicitor, they will take a look at your ex’s completed Form E and will pinpoint any financial irregularities with ease. In addition, they will also be able to help you raise any areas of suspicion regarding your ex’s income or undisclosed assets.
In some cases, it may be necessary to involve a forensic accountant. They can be invaluable in ensuring the Form E is completed accurately and highlighting any issues they find. This could be identifying any inconsistencies such as missing dividends or outdated property valuations. They will also be able to uncover and trace any assets the other party may have hidden.
What happens if my ex lies on their Form E?
As part of the Form E, parties are required to sign a statement of truth. This requires both parties to provide full and frank disclosure regarding their finances. As a result, if someone lies on their form, they could face significant consequences. This is because lying on a Form E is considered a contempt of court and is therefore punishable by either a fine or imprisonment. When completing the Form E, it is important to source up-to-date information and never attempt to conceal important and relevant financial details.
In reality, it is always best to be open and honest in your financial disclosure, as there is very little to be gained from trying to frustrate, try to divorce the other partner without their knowledge or delay the process. The non-complying person will very probably end up in court, where completing a Form E will be mandatory. Ultimately, persistent refusal may result in contempt of court attracting a fine, costs order, or a term in prison.
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