Understanding the Form E Financial Statement in UK Divorce Proceedings

February 25, 2025
|In LITIGATION
|By admin

Divorce is a complex process, particularly when it comes to financial settlements. In the UK, one of the key documents involved in this process is the Form E Financial Statement (“Form E”). This article will explore what Form E is, who needs to complete it, when it should be submitted, and how it impacts financial remedy divorce cases.

 

What is Form E?

Form E is a crucial document used in UK divorce proceedings to outline each party’s financial position. It provides a detailed account of income, assets, liabilities, and financial needs, enabling the court to make informed decisions regarding financial settlements.

This form is mandatory in financial remedy cases where one party seeks a financial order from the court. Financial orders can include claims for spousal maintenance, property adjustment orders, pension sharing orders, and child maintenance. By ensuring full transparency of each party’s financial situation, Form E helps the court divide assets and responsibilities equitably between the divorcing parties.

 

Who Needs to Complete Form E?

Form E must be completed by both parties involved in a financial remedy divorce. This requirement applies regardless of whether the case is settled through mediation, collaborative law, or court proceedings. By completing this form, both parties fully disclose their financial situation, which is crucial for a fair assessment of the available financial resources.

Even when an agreement is reached outside of court, Form E may still be used to ensure both parties have a clear understanding of each other’s finances. This can help prevent future disputes, especially if circumstances change or new financial information comes to light.

 

When Should Form E Be Completed, and What Are the Requirements?

Form E must be completed and exchanged before the First Appointment (the initial court hearing) in financial remedy proceedings. This typically occurs after the initial divorce petition has been filed and financial claims have been made. Failure to submit Form E on time can result in delays, and in some cases, the court may impose penalties or cost orders.

 

To complete Form E, individuals must provide detailed information about their finances, including:

  • Income: Salary, bonuses, benefits, and other sources of income.
  • Assets: Properties, savings, investments, and valuable possessions.
  • Liabilities: Debts, loans, and other financial obligations.
  • Expenditure: Monthly outgoing, living expenses, and future financial needs.

 

Supporting documents, such as bank statements, mortgage statements, and pension valuations must accompany the form to verify the information provided. The form also includes a Statement of Truth, where the individual confirms that the contents are accurate to the best of their knowledge. Inaccurate or incomplete disclosures can result in serious legal consequences, including contempt of court or adverse inferences being drawn against the offending party.

 

What Does the Court Take into Account?

When assessing Form E submissions, the court considers several factors, including:

  • The length of the marriage
  • The standard of living during the marriage
  • The age and health of both parties
  • Each party’s future earning potential

 

The court aims to reach a fair settlement that meets both parties’ needs, particularly when children are involved. The court also considers significant changes in circumstances since the separation, such as changes in employment status, new relationships, or serious health issues. Each party’s financial needs and obligations are carefully evaluated to ensure that the settlement is fair and sustainable in the long term.

The court relies on Form E to assess each party’s financial standing and determine appropriate financial orders, such as asset division, maintenance, and pension sharing.

 

Conclusion

Form E is an essential document in UK divorce proceedings, particularly in cases involving financial remedies. By providing a comprehensive overview of each party’s financial situation, it enables the court to make fair and informed decisions about financial settlements. Completing the form accurately and thoroughly is crucial, as failing to disclose all relevant information can have serious legal consequences.

 

Understanding and accurately completing Form E is essential for anyone going through a divorce. If you’re unsure how to proceed, seeking legal advice from Chan Neill Solicitors LLP can provide the guidance you need. With the support of experienced family law professionals, you can safeguard your financial interests and ensure a smoother divorce process.