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One of the fundamental principles of resolving financial matters following divorce in England and Wales (whether through Court proceedings, mediation or negotiations) is that both parties must give ‘full and frank’ disclosure of their financial positions. This obligation to provide complete disclosure continues right the way through until matters are concluded – so if there are any material changes in your circumstances after the initial disclosure stage, you should bring it to everyone’s attention.
In England, the principal way of giving financial disclosure is by completing and exchanging a Financial Statement. The importance of full and frank disclosure is that if either party deliberately misleads the other as to their financial position or does not disclose assets, then it may be possible to overturn any agreement reached based on this non-disclosure. If disclosure is not pursued or sought, then it becomes more difficult to overturn an unfair agreement as you will have chosen not to do so.
It is important to note that the duty of a Court is the administration of justice. Therefore, the Court cannot simply rubber stamp a Consent Order – its task is to exercise its discretion under the MCA 1973, section 25 and to consider whether the terms of the agreement represent fair and proper financial provision for the parties given the circumstances of the case. Accordingly, a Court can only do so if they are provided full and frank disclosure of all the parties financial assets, resources and income.
