When you embark on divorce proceedings, part and parcel of the negotiations in respect of the financial settlement is to provide the other person with full and frank financial disclosure.
That full and frank disclosure must be provided by way of a form called a Financial Statement (Form E), if court proceedings have commenced in respect of the finances. The Form E can seem invasive and you may not feel comfortable about including all your information within it. It is important to remember that both parties are required to provide all details of their financial circumstances (both in and outside of the UK). This must include income, properties, investments, pensions, details of inheritance, liabilities and outgoings. This is also the case if a couple have agreed that an asset will not be shared between them.
Unfortunately time and time again all assets are not disclosed or parties have failed to provide evidence in respect of their pensions or even failed to provide bank statements. The court has the power to order a party to be committed to prison if they fail to provide the necessary information. The court would of course offer the guilty party an opportunity, maybe even two opportunities to redeem themselves, however after some time, the court will make an Order to commit the guilty party. You may recall the well-publicised case of Scot Young who was committed to prison for non-disclosure in proceedings with his former wife, Michelle Young.
Be warned….. there are consequences for not providing the court with full and frank financial disclosure!