Form E and financial disclosure: building an accurate financial picture

Form E is a 30-page financial statement completed under a statement of truth.

It is generally used where financial remedy proceedings have been issued following divorce or civil-partnership dissolution. Different forms may apply to other types of financial applications or applications to vary an existing order.

Form E is not the same as Form D81. D81 provides summary financial information to support an application for a consent order.

Form E covers matters including:

• the family home and other property;
• mortgages and secured borrowing;
• bank and building-society accounts;
• savings, investments, shares and policies;
• personal belongings of significant value;
• liabilities and debts;
• business, partnership and company interests;
• pensions and retirement benefits;
• employment or self-employed income;
• benefits and other income;
• trust, inheritance or beneficial interests;
• financial contributions;
• income and capital needs; and
• the orders being requested.

The current form and the court’s directions should always be checked before preparing the disclosure.

Supporting evidence may include:

• current property valuations;
• mortgage statements;
• bank and savings statements;
• investment statements;
• pension valuations;
• payslips and P60s;
• tax returns and tax calculations;
• business accounts;
• evidence of benefits or other income;
• loan and credit-card statements; and
• documents relating to trusts, inheritances or other assets.

Documents should be complete, legible, correctly dated and organised so they can be matched to the relevant section of Form E.

Signing the statement of truth confirms that the information provided is true.

A party should not:

• deliberately omit an account or asset;
• undervalue property or business interests;
• conceal income;
• leave out a pension;
• disguise personal expenditure through a business;
• omit an interest held through another person; or
• provide estimates as established facts.

Where an exact figure is unavailable, the position should be explained honestly and the missing evidence obtained as soon as possible.

The obligation to disclose does not end when Form E is exchanged.

Material changes should be disclosed during the proceedings. Examples may include:

• a new job or change in income;
• a property sale;
• receipt of an inheritance;
• a significant new liability;
• updated pension information;
• a business sale or distribution; or
• a substantial change in asset value.

After Forms E have been exchanged, each party should review the other’s disclosure carefully.

This may lead to:

• a questionnaire seeking necessary further information;
• a schedule of deficiencies;
• requests for missing documents;
• a chronology;
• a statement of issues;
• a schedule of assets;
• property or business valuations;
• pension expert evidence; or
• other directions from the court.

Questionnaires should be relevant and proportionate. They should identify information genuinely required to understand the finances or resolve the issues.

Common mistakes include:

• using an outdated version of the form;
• leaving sections blank without explanation;
• using figures that do not match the supporting evidence;
• failing to disclose closed or rarely used accounts;
• omitting pensions or business interests;
• providing incomplete statement periods;
• using unrealistic property values;
• overlooking tax liabilities or selling costs;
• failing to explain transfers or unusual transactions;
• producing an unsupported monthly budget;
• failing to update disclosure; and
• signing the statement of truth without checking the completed form.

Price Family Law can provide support with:

• identifying the information and documents required;
• structuring and completing Form E;
• checking the form for gaps and inconsistencies;
• preparing a document checklist;
• organising supporting evidence;
• calculating an initial asset schedule;
• reviewing the other party’s Form E;
• identifying missing disclosure;
• preparing a proportionate questionnaire;
• preparing replies to questionnaire; and
• updating disclosure before later hearings.

The client remains responsible for confirming the accuracy of the information, signing the statement of truth and exchanging or filing the documents as directed.

Form E preparation or review is available as a One-Off Fixed Fee Service and may also form part of Complete Case Support.

The fixed fee is confirmed after assessing:

• whether the work involves preparation or review;
• the volume and condition of the documents;
• whether business or complex pension interests are involved;
• whether disclosure is missing; and
• the agreed scope and timescale.

Documents are reviewed once the scope has been agreed and payment has been received.