It is not uncommon for our newly separated clients to present us with a financial split that they have already agreed between them following the decision to separate. This is often based upon what they understand the matrimonial assets and liabilities to be. Whilst this can be an excellent starting point and evidence that both parties wish to extract themselves from the relationship amicably, it may not be a true picture of the matrimonial assets and what can be factored into the separation.

The term “full and frank disclosure” is often used in the legal world which requires both parties to provide full and accurate financial disclosure to each other and to the court. Clients are required to understand the extent of the matrimonial assets so that they are fully informed before making a significant financial decision that will affect their entire future.

If separating couples understand the value of their property and how much is left to pay on their mortgage, they can determine how much equity may be available to include in discussions. If either of the couple are unsure as to the property value, or cannot agree, then a estate agent or surveyor may be required to provide a market appraisal. In certain situations, this might also result in a joint valuation being obtained from an expert surveyor.

Other assets such as bank accounts, savings accounts and investments can have statements made readily available, often online instantaneously, together with income levels being evidenced by pay slips or tax returns.

One area that can be more difficult for couples to understand and resolve is where one or both parties own a business or a share in a business. A business may need accounts producing, confirmation of any Directors loans outstanding alongside any current and future financial elements. An expert accountant’s report may be required to supplement the business accounts to ensure these are properly considered.

Another area that can cause some confusion are pensions. Whilst most people may understand the current value of their pension pots from annual statements, this does not necessarily give the full picture. Pensions are a complex area in a divorce although fundamentally they are treated just like any other asset and are capable of being shared. The mechanics of this however is not quite as straightforward as for example splitting a bank account and part of the financial disclosure process can involve obtaining an expert pension sharing report to address this, so the parties can fully understand how they intend for their assets to be shared and what the consequences will be.

It is not uncommon for some spouses to become protective of their financial information as they fear the other spouse may take advantage or be out to take all they can get. Not making full disclosure however can have severe consequences and can, in some cases, result in an agreement which was based on incomplete disclosure later being set aside, effectively reopening the entire financial settlement.

This is why ‘full and frank’ financial disclosure is essential to reaching a binding financial settlement and ultimate conclusion on the assets of separating couples.  To reach an agreement without full disclosure risks one or both parties not fully understanding what they are agreeing to and, even worse, assist with concealment of assets or income streams.

Whilst the prospect of separation and resolving finances can seem daunting and complex, the law is designed to ensure that the outcome is a fair resolution to both parties based upon the financial assets of the couple, the financial structure of the couple when in a relationship and the current and future financial needs of each individual as they move forward with their lives.

At Clark Willis we have experienced Family solicitors used to dealing with standard or more complex financial separations involving business assets, agricultural elements, pensions and Armed Forces pensions.  Where you have separated (or considering separating) and require trusted Family law advice then contact your local Clark Willis office or utlise our online contact from to take the initial steps to safeguard your financial future.