Going through a divorce can be a challenging time, and when your lawyer hands you a Form E, it may feel overwhelming at first glance. But understanding what it is and why it's necessary can help to demystify the essential process of financial disclosure.
What Is a Form E and Why Do I Need to Complete It?
A Form E is a financial statement used to provide a full, frank and clear overview of your financial position. Both you and your spouse will each need to complete your own separate Form E, focused solely on your own resources, whether owned in your sole name or jointly with another person. The information each of you provides will then form the basis of “the computation exercise”, when determining your financial settlement.
A Form E is central to ensuring that the financial arrangements following your divorce are fair and meet your capital and income needs.
What Does a Form E Cover?
- Personal Details: Basic information about you and your spouse.
- Income: Details of your earnings, including salary, bonuses, benefits, and any other sources of income.
- Capital: A list of your assets, such as property, savings, investments, and any other valuable items.
- Pensions: Information about any pension schemes you are a member of, including the value of these pensions.
- Debts: Details of any loans, mortgages, credit card balances, car financing, or other debts.
- Outgoings: An account of your regular expenses, including living costs, bills, and any other recurring financial commitments.
- Standard of Living: An overview of your standard of living during the marriage, which can influence financial settlements.
Gathering the Right Documents
You will need to gather together evidence by way of property valuations, bank statements, pay slips etc, to support the information you provide. To get ahead of the process we would suggest collating your:
- Last 12 months bank statements
- Last 3 months payslips and P60
- Most recent mortgage statement
- Statements for any investments you may own
- Annual Pension statements
- Details of any personal loans or other debts
You may also wish to invite 2 or 3 local high street estate agents to visits your property/ies and email you with their advice as to realistic value/sale price.
The Form E is the first round of disclosure. It is essential to be as thorough and accurate as possible to reduce the risk of being accused of misrepresentation or dishonesty. However, it can be common to overlook or forget historic investments and so the process allows for a number of further rounds of disclosure to fill in any gaps. Failing to disclose an asset or debt after several rounds of disclosure can have serious consequences, including financial penalties or a less favourable settlement.
When Will I Need to Produce a Form E?
A Form E should always be exchanged before you begin negotiating terms of settlement. This can be done voluntarily or pursuant to a court application and order.
Be prepared to complete a Form E in the following circumstances:
Mediation: If you agree to attend mediation, your mediator is likely to ask you to complete a Form E.
Out of court solicitor negotiation: If you instruct your solicitor to try and assist you to find an agreed solution, your solicitor is likely to advise you to agree to exchange Forms E before making any settlement proposals or accepting any put to you by your spouse.
Court application: If either you or your spouse applies to the court for a Financial Order on Divorce, the court will require you to file and serve Forms E before the first hearing.
It's OK to Feel Overwhelmed – But You Don't Have to Do It Alone
Completing your Form E can be a daunting task, but it's an essential part of the divorce process. It's understandable to feel overwhelmed by the amount of detail required, but your lawyer is there to guide you through the task and ensure that everything is fully completed. You will most likely be best placed to collate your bank statements and other paperwork, and your solicitor will then be able to index your documents for you and use the information to complete the form. At Herrington Carmichael, our Family team has extensive experience in helping clients navigate the complexities of divorce, including the preparation of a Form E.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.