The Importance of Financial Disclosure when Sorting out Finances on Divorce
Reaching a fair financial agreement is a key step in divorce and separation. At Family Mediation Services Ltd, we help families secure legally binding settlements through expert mediation. Clear financial disclosure is essential for a realistic, affordable settlement that ensures both partners can maintain a home. We guide you through this process, promoting fairness and transparency so you can move forward with confidence.
It is important in Understanding Financial Disclosure in Family Mediation that every financial separation agreement starts with disclosing assets, debts, and income. This step ensures both parties make informed decisions based on accurate, complete information.
Choosing the Right Form: Form E vs. Form D81
In mediation, there are two main ways to disclose your financial information:
1. Form E: This is a comprehensive financial statement that provides a detailed account of your assets, debts, and income. It’s often necessary when there’s a significant disagreement or when detailed information is required to reach a settlement.
2. Form D81: This form is a brief summary of your financial situation and is typically used when both parties have reached an agreement and need only a basic overview of their finances.
During financial disclosure, you can both agree that you have no need to disclose in details. This would be because you have enough information to make an informed decision and that decision is going to be binding on the both of you. Case law to support this is found in the recent family law judgement of HJB v WPB(2024) EWFC 187. During your mediation sessions, we help you to understand financial disclosure. If you’re struggling to reach an agreement, we’ll guide you through the process of completing a Form E*. On the other hand, if you and your partner are largely in agreement, we can assist you in compiling the necessary information for a Form D81, ensuring the process is as smooth and quick as possible.
The Role of Legal Advice
Legal advice is an essential component of any financial agreement. By obtaining and demonstrating that you’ve received sound legal advice, you protect yourself from entering into an agreement under duress or without a full understanding of the implications. This step is crucial in ensuring that any agreement you sign is binding and final. It also ensures that courts are unlikely to unpick the terms unless there are significant changes in circumstances, such as those affecting the needs of a minor.
Finalising Your Agreement
Once you disclose your finances and get legal advice, the next step is to formalise your agreement. This can take the form of a draft consent order, separation agreement, or memorandum of understanding—all of which serve as contracts under common law.
At Family Mediation Services Ltd, our experienced mediators simplify the process of creating a legally binding consent order. With our guidance, what seems complex becomes straightforward, especially when both parties commit to transparency and fairness.
Why Choose Family Mediation Services Ltd?
Our team of expert mediators brings over 20 years of experience to each case. This ensures that you receive the highest standard of service. We are accredited by the Family Mediation Council, with many of our mediators being seasoned lawyers or academics with deep expertise in negotiation psychology. Whether you have substantial assets or are working with limited resources, we offer affordable mediation services tailored to you understanding financial disclosure in family mediation
For more information on how to reach a financial agreement that can be transformed into a legally binding consent order, contact Family Mediation Services Ltd at 0300 365 2700 or visit us at email us at admin@familymediationservices.co.uk
Let us help you achieve a fair and lasting settlement, so you can move forward with peace of mind.
* rather than producing a Form E at mediation we instead produce an identical document known as an open financial statement.