by Jess Knauf, Director of Client Strategy at Mediate UK, August 2026. Information reflects current family law and mediation requirements as of 28 August 2026.
Key Takeaways
- Financial disclosure means listing every asset, debt and source of income as close to today's date as possible, not the date you separated.
- Any individual asset worth more than £500 must be included, even items you do not plan to divide.
- Without full and frank disclosure, any agreement you reach can be legally challenged or set aside at a later date.
- You can do financial disclosure on divorce through mediation forms, a Form E, or both, but both parties must use the same process.
- Hiding assets is one of the most common reasons financial orders are overturned years later, including in Sharland v Sharland [2015].
- The court considers the position today, not at separation, so old valuations are not acceptable.
FINANCIAL DISCLOSURE
Financial disclosure is the process of listing all your assets, debts and income as close to today's date as possible, including every asset valued at over £500. It is the only way to make sure any agreement you reach can be made legally binding without the risk of being challenged later. You must list everything, even assets you are not planning to divide, and the values must be current and not at the date of separation. Many people get this wrong.
Watch our 6-minute guide to financial disclosure on divorce, or read on for the full written guide.
Financial disclosure is the single most important step in reaching a fair financial settlement on a divorce or separation. Get it right, and any agreement you reach can be made legally binding through a consent order. Get it wrong, and the same agreement could be set aside by the court years later, with you ordered to start again and pay the legal costs of both sides.
This guide explains exactly what financial disclosure on divorce involves, what must be disclosed, the documents you will need, how mediation differs from the court Form E process, what happens if you fail to disclose properly, and how to value each type of asset. The disclosure table further down is the most comprehensive single reference we have published, and you can copy it for your own use.
Disclosure is the first step. Our financial mediation service takes you from there to a fair split of the home, pensions and savings, usually in two to four sessions, then makes the agreement legally binding for a fixed fee.
What is financial disclosure on divorce?
Financial disclosure on divorce is the process where both parties give each other a full and accurate picture of their personal financial position. It covers every asset, every liability, every source of income, and a reasonable forecast of future expenditure. Both parties produce the same information, exchange it, and then use it as the foundation for negotiating who keeps what.
The duty applies whether you are using mediation, working through solicitors, or making a formal court application. It applies even when you have agreed everything between you in principle. It applies even when you think you both know each other's finances inside out. It applies because, under section 25 of the Matrimonial Causes Act 1973, the court cannot make a fair decision without complete and accurate information, and you cannot make a fair private agreement either.
Two principles run through the whole process:
- Full and frank: every asset, however small or seemingly irrelevant, must be disclosed. The duty is on you to volunteer information, not to wait for the other side to ask.
- Current valuations: assets must be valued as close to today as possible. Old valuations, valuations from the date of separation, or estimates based on what you paid for something years ago are not acceptable.
The complete financial disclosure checklist
This is the most common question we hear: "what exactly do I need to disclose?" The tables below cover every category of asset, liability and income that should appear on your disclosure, with the document required, how to value it, how current the valuation needs to be, and the mistakes we see most often. If you copy nothing else from this guide, copy this.
Property and mortgages
| Asset or liability | Document needed | Valuation method | How current | Common pitfall |
|---|---|---|---|---|
| Family home | Surveyor report or 3 estate agent valuations | Average of 3 valuations, or single chartered surveyor figure | Within 3 months | Using the purchase price or an old mortgage valuation |
| Investment or buy-to-let property | Valuation plus tenancy agreement and rental statement | Average of 3 valuations plus gross and net rental figures | Within 3 months | Forgetting void periods or letting agent fees in the income figure |
| Overseas property | Local valuation plus currency conversion to GBP | Local market valuation, converted at current exchange rate | Within 6 months | Assuming overseas property is excluded from English divorce |
| Main mortgage | Redemption statement from lender | Lender's redemption figure (the amount to fully pay it off today) | Within 30 days | Using a monthly or annual statement instead of a redemption statement |
| Help to Buy or shared ownership equity loan | Loan statement from Help to Buy scheme | Current value of the loan (rises with property value) | Within 90 days | Forgetting the equity loan exists alongside the mortgage |
Cash, savings and investments
| Asset | Document needed | Valuation method | How current | Common pitfall |
|---|---|---|---|---|
| Current accounts | Last 12 months of statements per account | Latest closing balance | Within 30 days | Treating an overdrawn account as zero rather than a liability |
| Savings accounts | Latest savings statement | Current balance | Within 30 days | Forgetting old accounts with small balances |
| ISAs (cash and stocks & shares) | Provider statement | Current value | Within 30 days | Treating ISAs as separate from savings and missing them |
| Premium Bonds | NS&I confirmation | Holding value | Current | Often missed because they are not held in a bank |
| Stocks and shares | Broker portfolio statement | Current market value | Within 30 days | Using last year's annual statement |
| Cryptocurrency | Exchange or wallet statement | Current GBP value (volatile, so re-check at exchange) | Within 7 days | Failing to disclose because "no one knows about it" |
| Endowment or life policies | Surrender value letter from provider | Current surrender value | Within 30 days | Using the maturity value rather than surrender value |
| Cash held physically | Honest estimate (no document) | Best estimate of cash at home | Current | Either minimised or omitted entirely |
Pensions
| Pension type | Document needed | Valuation method | How current | Common pitfall |
|---|---|---|---|---|
| Workplace pension | CETV from pension provider | Cash Equivalent Transfer Value (different to annual benefit statement) | Within 12 months | Using the annual statement, not the CETV |
| Personal pension or SIPP | CETV from provider | CETV | Within 12 months | Forgetting old pensions from previous employers |
| Final salary or defined benefit pension | CETV (paid for if in payment) | CETV plus PODE actuary report if values are significant | Within 12 months | CETV often underestimates true value of a final salary scheme |
| Pension in payment | CETV plus monthly payment statement | CETV (asset) plus monthly income (income) | Within 12 months | Listing only as income, missing the underlying asset value |
| State pension | State pension forecast from gov.uk | Forecast weekly amount and qualifying years | Within 6 months | Often missed entirely from disclosure |
| Lost or old pensions | Trace using gov.uk pension tracing service | CETV once traced | Within 12 months | Failing to trace pensions from old jobs |
| Pension Protection Fund (PPF) pension | PPF statement | PPF compensation value | Within 12 months | Listed separately on court forms, often missed |
Pensions are the area where most disclosure errors happen. Read our full guide to pensions on divorce for the detail on CETVs, sharing orders and how pensions are actually valued and split.
Income
| Income source | Document needed | Valuation method | How current | Common pitfall |
|---|---|---|---|---|
| Employment income | P60 plus last 3 months' payslips | Annual gross plus net take-home | P60 from last tax year; payslips current | Excluding bonuses, overtime or commission |
| Self-employment income | Last 2 tax returns plus business accounts | Net profit before drawings | Latest filed tax year | Confusing drawings with full income |
| Dividend income | Dividend vouchers plus self-assessment | Annual total | Latest tax year | Treating dividends as one-off rather than recurring income |
| Rental income | Tenancy agreement plus 12 months' bank statements | Gross rental income, then net after agent fees and costs | Current | Forgetting void periods and tax on the income |
| Benefits and tax credits | DWP or HMRC award letter | Annual figure broken down by benefit | Within 3 months | Missing entitlements you have not yet claimed |
| Maintenance received (child or spousal) | Court order or written agreement | Annual figure | Current | Informal arrangements that are not documented |
Business interests
| Business type | Document needed | Valuation method | How current | Common pitfall |
|---|---|---|---|---|
| Limited company shares | Companies House records plus latest filed accounts | Accountant's valuation of shareholding | Latest filed accounts | Confusing trading value with personal asset value |
| Sole trader business | Last 2 tax returns plus business bank statements | Net trading value (assets minus liabilities) | Latest tax year | Assuming sole trader business has no asset value |
| Partnership | Partnership accounts plus partnership deed | Net value of your share of the partnership | Latest filed accounts | Failing to disclose capital balance in the partnership |
| Director loan account | Company accounts showing balance owed to or by you | Outstanding loan balance | Latest accounts | Often missed completely; can be a significant asset |
For a fuller treatment of how a business is valued and treated on divorce, see our guide on business assets in divorce.
Vehicles and valuables
| Item | Document needed | Valuation method | How current | Common pitfall |
|---|---|---|---|---|
| Cars owned outright | V5 logbook plus online valuation | Parkers, Autotrader or similar trade guide | Within 30 days | Forgetting finance or lease liability |
| Cars on lease or finance | Finance agreement plus settlement quote | Settlement figure from finance company | Within 30 days | Treating a leased car as an asset rather than a liability |
| Boats, caravans, motorcycles | Receipt or specialist valuation | Online or trade valuation | Within 30 days | Treating recreational assets as outside the disclosure |
| Jewellery, watches, art (single item over £500) | Receipt or insurance valuation | Insurance or auction estimate | Within 12 months | Underestimating wedding gifts or inherited pieces |
| Collectibles (wine, coins, memorabilia) over £500 | Specialist valuation | Auction or specialist estimate | Within 12 months | Often "forgotten" by the owner |
Liabilities and debts
| Liability | Document needed | Valuation method | How current | Common pitfall |
|---|---|---|---|---|
| Credit cards | Latest statement per card | Outstanding balance | Within 30 days | Listing only joint cards, missing sole-name cards |
| Personal loans | Loan statement with settlement figure | Settlement figure (not balance) | Within 30 days | Using balance instead of settlement figure |
| Hire purchase agreements | HP agreement plus settlement quote | Settlement figure | Within 30 days | Counting the goods as an asset without the liability |
| Tax owed to HMRC | HMRC statement or self-assessment summary | Amount currently owed | Current | Self-employed people often forget upcoming tax bills |
| Family loans | Letter from family member confirming loan | Amount owed | Current | Often disputed by the court as not a "real" debt unless documented |
Trusts and inheritance
| Item | Document needed | Valuation method | How current | Common pitfall |
|---|---|---|---|---|
| Beneficial interest in a trust | Trust deed plus trustee statement | Trustee valuation of interest | Current | Claiming "I don't control it so I don't need to disclose" |
| Inheritance already received | Bank records plus will (where helpful) | Current value (whether in cash or invested) | Current | Treating inheritance as "untouchable" and omitting it |
| Inheritance in probate | Copy of will plus executor's estimate | Estimated share once probate granted | Current | Assuming "future" inheritance is excluded (it generally is, but money already due in probate is not) |
The general principle is that inheritance which has already been received forms part of the disclosure, even if it is not necessarily treated as a marital asset to be divided. Inheritance you might receive in the future, where the person leaving it is still alive and can change their will, is generally not disclosable. Money currently in probate sits somewhere in the middle and should be disclosed.
Disclosure is where every financial settlement starts. Our accredited family mediators take you from there through to a full agreement on the house, the pensions and everything else, and we can make it legally binding for a fixed fee.
How financial disclosure works in mediation versus Form E
There are three main ways to do financial disclosure on divorce: mediator disclosure forms, the court Form E, or a combination. Both parties must use the same process. If one of you elects to use a Form E, you both have to.
Mediator disclosure forms
Most mediation clients use our streamlined mediator disclosure forms. They cover the same essential information as a Form E but are far less onerous to complete and are accepted by the family courts as a full disclosure. The mediator then produces an Open Financial Statement summarising both parties' positions, and this can be used as the foundation for a consent order. Mediation disclosure is significantly cheaper and quicker than a Form E exchange through solicitors.
Form E
The Form E is the legal document used when financial remedy proceedings are issued at court. It is also commonly used outside court proceedings, where parties want a more thorough disclosure or where the case is likely to end up in court regardless. It is a 28-page form with extensive supporting documents required: 12 months of bank statements for every account, CETVs for every pension, property valuations, business accounts, and detailed forecast budgets. You sign a Statement of Truth at the end. Lying on it can amount to contempt of court.
Family Law Service
Need Help Completing Your Form E?
Form E is detailed and the supporting documents take time to gather. Our sister service Family Law Service offers fixed-fee Form E completion with a qualified specialist, including a structured questionnaire and document checklist to make sure nothing is missed.
Which should you use?
For most amicable separations where both parties are willing to engage, mediator disclosure forms are sufficient and significantly cheaper. Use Form E when: court proceedings have already started; one of you suspects the other of hiding assets; the case involves complex business interests or trusts; or solicitors are leading the negotiation and want full Form E disclosure for their own due diligence.
When must financial disclosure be done?
The duty applies in three scenarios:
- Voluntary disclosure before any court application: most amicable separations. Both parties willingly share their financial position so they can negotiate a fair settlement.
- Mediator-led disclosure: as part of the mediation process. The mediator helps both parties complete and exchange disclosure as a foundation for joint financial discussions.
- Court-ordered Form E exchange: when financial remedy proceedings have been issued. Both parties must complete Form E by a court-set deadline, usually 5-7 weeks after the First Appointment.
The duty is also ongoing. If your financial circumstances change materially between completing disclosure and finalising the order, you must update the disclosure. This includes a new job, a redundancy, an inheritance, a windfall, or a major debt.
"We see clients who think disclosure is a paperwork exercise. It is not. It is the foundation of every financial agreement we help to put together. We have seen settlements unravel years later because one party left something off, and the other found out. The two minutes saved by forgetting an old pension can cost £30,000 in legal fees down the line. Disclose everything, even the small stuff, and the agreement holds."
Jess Knauf, Director of Client Strategy, Mediate UK
What the case law says about financial disclosure
The duty to provide full and frank financial disclosure is not just good practice. It has been confirmed by the highest courts in three leading cases, each of which strengthens how seriously non-disclosure is treated.
Livesey v Jenkins [1985] AC 424
The House of Lords held that the court could not properly exercise its discretion under section 25 of the Matrimonial Causes Act 1973 without correct, complete and up-to-date information. Each party is under a positive duty to make full and frank disclosure of all material facts to the other party and to the court. Critically, the court confirmed this duty applies even to private exchanges of information leading to consent orders, without any further inquiry by the court.
Sharland v Sharland [2015] UKSC 60
The Supreme Court ruled that a deliberate failure to give full and frank financial disclosure should lead to the setting aside of a consent order. The only exception is where the court is satisfied it would have made substantially the same order anyway had it known the full position. Mrs Sharland's husband had concealed plans for an IPO of his company shares worth potentially hundreds of millions; the consent order was set aside.
Gohil v Gohil [2015] UKSC 61
Decided the same day as Sharland, this case confirmed that even significant time passing does not protect a party who has fraudulently hidden assets. Mrs Gohil's order was set aside many years after the original settlement when her ex-husband's fraud came to light through criminal proceedings.
The clear message from these three cases: the courts take non-disclosure extremely seriously, and a financial order is never truly safe if it was built on a false disclosure.
Consequences of failing to give full financial disclosure
Where a party fails to provide proper financial disclosure on divorce, the consequences can be severe:
- Adverse inferences: the court can assume undisclosed assets exist and adjust the settlement against the non-disclosing party.
- Costs orders: the court can order the non-disclosing party to pay both sides' legal costs, often running into tens of thousands of pounds.
- Setting aside the order: even a final, sealed consent order can be reopened years later if non-disclosure is discovered.
- Contempt of court: signing a Form E or D81 Statement of Truth knowing it to be untrue is contempt of court, punishable by fine or imprisonment.
- Fraud: in serious cases, deliberate non-disclosure can amount to fraud, leading to criminal proceedings.
- Reputation and credibility: once caught hiding assets, your credibility in any future court proceedings is compromised.
Want a less stressful way through financial disclosure?
Our mediators guide both parties through disclosure together, with a clear document checklist and simpler forms than Form E. Most clients complete disclosure in 2-3 weeks rather than the months a contested Form E exchange can take.
Common ways assets get hidden and how to spot them
Most non-disclosure is not sophisticated fraud. It is small omissions, conveniently forgotten accounts, or assets that "do not feel like" they should be disclosed. The patterns to watch for include:
- Unexplained large cash withdrawals in the months leading up to separation, especially if rounded amounts and below reporting thresholds.
- Transfers to family members or new partners that look like loans but are actually parking assets out of view.
- Cryptocurrency holdings not mentioned despite obvious purchases on bank statements.
- Bonus or commission delays: pushing pay to after the disclosure window so it is not captured.
- Suddenly poor business performance: limited company directors who report unusual losses or take large drawings in the disclosure period.
- Forgotten old pensions, premium bonds, savings accounts and ISAs from before the marriage.
- Offshore accounts: less common but still seen in high-net-worth cases.
If you suspect non-disclosure, mediation may not be the right route because mediators cannot investigate or compel evidence. Solicitor-led negotiation or court proceedings, where a forensic accountant can be appointed to scrutinise bank statements and trace the money, will be more effective. Forensic accountant reports typically cost £10,000 or more, so legal advice is sensible before going down that path.
The five-step financial disclosure process
Whether you go through mediation or court, the process follows the same five steps:
- Step 1. Gather your documents: use the checklist above to collect statements, valuations, payslips and tax returns. Start early, some take weeks to obtain.
- Step 2. Complete the disclosure form: either Mediate UK's disclosure forms or the court Form E. Be thorough; if in doubt, include it.
- Step 3. Exchange disclosure: both parties share their completed forms and supporting documents. In mediation this happens with the mediator's facilitation; through solicitors it happens by agreed exchange date.
- Step 4. Raise questions: review the other party's disclosure and prepare a questionnaire if anything is missing, unclear or inconsistent. In mediation this happens during the joint meeting.
- Step 5. Agree the financial position: once both parties accept each other's disclosure as full and accurate, you have the foundation to discuss settlement.
From step 5, the negotiation moves to settlement. Read our guide to financial settlement on divorce for what happens next.
Case Study: Forgotten pension, found in time
Karen and James (names changed) attended mediation in 2025 after 22 years of marriage. James disclosed his current workplace pension with a CETV of £180,000. During the disclosure review, our mediator asked about earlier employment. James remembered a pension from a job in his 20s that he had not thought about for 15 years. After tracing through the gov.uk pension tracing service, the lost pension was valued at £42,000. Without the trace, that pension would have been excluded from the settlement, leaving Karen significantly worse off. Karen also discovered an old endowment policy of her own worth £8,500 that she had forgotten. Both were added to disclosure and the settlement reflected the true asset position.
Voluntary financial disclosure vs Form E: which do you need?
A common question from clients is whether they need to do a full Form E if they are not going to court. The short answer is no, you can use voluntary financial disclosure through mediation, but the same duty of full and frank disclosure applies either way.
| Feature | Mediation disclosure | Form E |
|---|---|---|
| Length of form | Streamlined, typically 8-12 pages | 28 pages plus exhibits |
| Documents required | Current statements, valuations | 12 months of statements for every account, full document schedule |
| Time to complete | 2-3 weeks typically | 6-10 weeks typically |
| Cost | Included in mediation fees | From £250 fixed fee (Family Law Service) up to £2,000+ through solicitors |
| Court acceptable | Yes, via the Open Financial Statement | Yes, it is the court's standard form |
| Best for | Amicable separations, straightforward finances | Court cases, complex finances, suspected non-disclosure |
Summary
Financial disclosure on divorce means giving a full, accurate and current picture of every asset, debt and source of income, valued as close to today as possible. The duty is the same whether you are in mediation, working through solicitors or going to court. Every asset worth more than £500 must be included, even those you do not intend to divide.
Get it right and you can turn your agreement into a legally binding consent order. Get it wrong, even unintentionally, and the order can be set aside years later (see Sharland and Gohil). Use the checklist above as your reference, value everything currently, and disclose every account, every pension and every asset over £500. The peace of mind is worth the effort.
From our sister service, Family Law Service
Want a sense of where you stand on the money?
The AI Barrister Review is an online AI tool for divorce finances in England and Wales. You answer a guided questionnaire and get a written report on how a court is likely to divide your home, savings, pensions and maintenance, with the cases behind it. The report is written by AI, not by a barrister, and is information rather than legal advice.
Try the AI Barrister ReviewFrequently Asked Questions
Do I have to disclose all my finances on divorce?
Yes. The duty is full and frank disclosure of every asset, debt and source of income, even items you do not intend to divide. Without it, any agreement you reach can be set aside later.
What assets must be included in financial disclosure?
All property, bank and savings accounts, ISAs, investments, pensions (including state and old workplace pensions), business interests, vehicles, valuables over £500, and any liabilities including credit cards, loans and tax owed.
Can I value assets at the date of separation?
No. Assets must be valued as close to the date of disclosure as possible. The court considers current values, not historical ones. Using separation-date values is one of the most common mistakes.
What happens if I do not disclose an asset?
Adverse inferences can be drawn, your settlement can be set aside (even years later), costs can be ordered against you, and in serious cases you may face contempt of court or fraud proceedings.
Is financial disclosure mandatory in mediation?
Disclosure is essential in any mediation where finances are discussed. Both parties sign an Agreement to Mediate that includes the duty to disclose. Without it the mediator cannot help you reach a viable agreement.
Do mediation disclosure forms hold up in court?
Yes. The mediator produces an Open Financial Statement summarising both parties' disclosure, and this is accepted by the courts as a full disclosure for the purposes of a consent order.
How long does financial disclosure take?
Through mediation, typically 2-3 weeks. Through Form E exchange with solicitors, usually 6-10 weeks. Court-ordered Form E exchanges follow a court timetable, usually 5-7 weeks from the First Appointment.
Do I need to disclose my new partner's finances?
No, but you must disclose whether you are cohabiting or intend to. If you are sharing household expenses with a new partner and spousal maintenance is being considered, your partner's contribution to household running costs may need to be reflected in your budget.
What is the £500 threshold for financial disclosure?
A practical guideline that any single asset worth more than £500 should be disclosed. This catches jewellery, watches, art and other valuables that might otherwise be overlooked. Below £500 per item, possessions are usually agreed informally between parties.
Can I refuse to do financial disclosure?
If you refuse voluntary disclosure, mediation is unsuitable and the matter will likely go to court. The court can order Form E disclosure under threat of contempt, and adverse inferences will be drawn against you. Refusing only delays the inevitable while increasing costs.
You Might Also Find Helpful
| Asset Valuation in Divorce Read the guide | The Ultimate Guide to Spousal Maintenance View the guide |
| The Financial Mediation Process Find out more | Divorce Financial Settlement Guide Learn more |
Our Legal Partnerships
Mediate UK works closely with our trusted legal partners including: DFA Law LLP, St Ives Chambers, and The Family Law Consultant. These experienced legal professionals support our clients with consent orders, legal documentation and advice, and independent barrister reviews.
DFA Law is regulated by the Solicitors Regulation Authority (SRA). Their family law team is led by Rachel Adams, Partner and Head of Family Law, recognised in The Legal 500 and Chambers and Partners.
This guide was written by Jess Knauf, Director of Client Strategy at Mediate UK, and reviewed by Belinda Atkins, Managing Director, Family Legal Ltd. Jess helps families work through financial disclosure and reach fair settlements through Mediate UK's award-winning mediation service. Contact the team on 0330 999 0959, email admin@mediateuk.co.uk or visit www.mediateuk.co.uk.