Financial Disclosure for a Consent Order: What You Need to Know

Consent Order Financial Disclosure

When divorcing in the UK, reaching a financial agreement is a key part of the process. To make that agreement legally binding, you must apply for a consent order. But before a court will approve it, both parties must provide full financial disclosure. This step is vital for ensuring the agreement is fair, transparent, and legally enforceable.

This article explains what financial disclosure is, why it matters, how it works in the context of a consent order and what happens if you don’t do it properly.

1. What Is Financial Disclosure and What Are the Types?

Financial disclosure is the process of sharing details of your finances with your ex-partner (and ultimately the court). This includes:

• Income (salary, benefits, business income)

• Savings and investments

• Property

• Pensions

• Debts and liabilities

  
  

In the context of a consent order, financial disclosure is usually done voluntarily by both parties and recorded on a court form called Form D81 (Statement of Information for a Consent Order). This is a simple disclosure and a much easier form to fill out.

If you are seeking a contested financial order where you are applying to the court to decide your settlement, you will need to provide a more extensive financial disclosure called Form E. This form also includes outgoings and specific financial needs etc.

It is common to start with a Form E disclosure if negotiating through solicitors and then once you have agreed on your settlement transition to a D81 when submitting a consent order.

2. Do I Need to Provide Evidence?

While you’re not required to submit financial documents with Form D81, both parties should have seen and verified the other's financial situation before agreeing to the consent order. If both parties are in agreement and trust each other’s declarations no proof should be required but you may still need to provide proof on request by the other party or if a dispute arises.

If the court suspects dishonesty, the figures seem too estimated or if the figures seem unbalanced, the judge may request supporting documents or further clarification.

Form E financial disclosure will require proof of all figures such as bank statements, property valuations, pension valuations and payslips. Form E is a much deeper form which is designed to provide full clarity and full proof of figures.

Let's take a moment to talk about pensions and CETVs...

If you have a pension, you will need to provide an accurate valuation of that pension for your financial disclosure, even with the amicable D81 disclosure. For private pensions this is simple, ring up or log in to your account and get the balance figure.

For other pension types, you will need a valuation called a CETV (cash equivalent transfer value). It is important to understand that this is only required for defined benefit scheme pensions such as those who work for the NHS, teachers, army, police, civil servants etc. This can be a huge pain as they normally take months to obtain.

3. Why Is Disclosure Required for a Consent Order?

The court must be satisfied that your financial agreement is fair and reasonable based on each person’s financial circumstances. The judge can’t assess this without seeing a clear picture of all your finances regardless of whether you intend to split them or not. The judge also has a duty to ensure no one is being taken advantage of or coerced into the agreement.

It is also essential for the very purpose of the consent order; if you cannot see all of the accurate information then you cannot properly consent to the terms of the agreement.

Without financial disclosure, the court will reject the consent order or the order could be challenged in the future if one party believes information was hidden. You also run the risk of an unfair settlement, especially if one party is in a stronger financial position.

4. Do I Need To Disclose Pre-marital Assets?

You need to disclose all assets, regardless of when you accrued them. That means all assets you accrued before the marriage, during the marriage and after separation.

Why? Technically speaking, a judge has the power to draw from any of these assets to reach a fair agreement if they feel it necessary. This is because the longer the marriage, the more integrated your assets will be. For example, a pension you accrued before the marriage will have less weight as a pre-marital asset the longer the marriage goes.

5. What Happens If Someone Lies or Omits Assets?

Failing to disclose assets, or deliberately misrepresenting your financial position, is considered fraud. If discovered later, the consent order can be:

• Set aside by the court (made void)

• Replaced with a new financial settlement

• Lead to legal costs and even penalties for the dishonest party

• You can be held in contempt of court and prosecuted

  
  

That’s why full, frank, and honest disclosure is essential, it protects both parties and the integrity of the order.

6. Can You Refuse to Disclose?

No. If you’re applying for a consent order, you must complete Form D81. If one person refuses to disclose their finances, you cannot proceed with the consent order. You may have to seek a contested financial remedy instead, which is more costly and more time-consuming.

Summary

Financial disclosure might feel like a formality in an amicable divorce, but it plays a crucial role in protecting both parties and ensuring your consent order is legally robust. We often find that people get frustrated when they hear that they need to disclose the values of their pensions or property when they have no intention of sharing these assets. Hopefully this has helped put things into perspective and why it is required.

If you're unsure about what to include or need help preparing Form D81, our friendly advisors are always on hand to help. You can view our consent order services here.

Written by Aaron O'Toole, MSc in Law and Business

Clean Break Divorce