Financial Disclosure & The Importance Of Being Honest

Adrian Rose, Family Law Solicitor & Mediator discusses the importance of being honest during financial disclosure throughout the divorce process….

A recent decision of the Family Court has shone the spotlight on an issue that occurs regularly when couples separate and divorce where one feels that the other has not been honest during financial disclosure and instead are hiding their true wealth or assets.

The founder of Screwfix, James Goddard-Watts and his former wife, Julia, have been in Court about their financial arrangements on divorce for 13 years and have spent many hundreds of thousand of pounds in legal fees. Recently, Julia appealed against a High Court ruling that she said left her with £7.4million from her former husband’s fortune of more than £80million. On considering this, the Court found that James fraudulently failed to disclose assets to such an extent that the ‘entire financial landscape’ of the case needs to be re-examined.

Further details on this case can be found here.

Disclosing Finances

In the vast majority of family cases, most couples will know or have a general understanding of their family’s financial resources and obligations, whether those are good or bad. They are then able to make fully informed decisions about the division of those when they separate. Family lawyers and the Family Court will ask the couple to provide this information and check or clarify certain aspects of it to ensure that, firstly, everything is taken into account and nothing missed and, secondly, to ensure that any financial settlement is fair and reasonable in the eyes of the Law.

In some cases, however, difficulties arise. Sometimes, couples do not see the need to provide or seek financial disclosure. In such circumstances, whilst they may be able to go ahead with a financial agreement, they will do so at their own risk understanding that if information comes to light later they will not be able to re-open it.

What Happens If Someone Isn’t Being Honest?

Where one spouse has withheld information, whether deliberately or perhaps even by accident, the situation can be different. The criteria set by the court that allow settlements and orders to be reopened are long established and are strict as the Court confirmed for James and Julia.

In cases such as theirs, the Court is looking at significant sums of money – far more than loose change or an ancient premium bond in an old handbag – but not to take notice of the need to give full disclosure and the consequences of not doing so, might be considered by some to be an accident but by the Court is likely to be viewed as carelessness and result in agreements and orders being set aside and costs penalties.

How Can Timms Help?

If you would like to find out more about disclosing finances during divorce proceedings then please get in touch by calling 01332 364436 or emailing a.rose@timms-law.com