I am often asked by clients why they still have to file a statement setting out their financial positions when they have reached an agreement with their ex. Basically, there are two different financial statements that have to be completed depending upon whether there is an agreement, or whether you are negotiating a settlement with your ex or through the court
If you have reached an agreement which you are asking the court to convert into an order, the judge has to be satisfied the agreement is fair so he will need to have a summary of each of your financial positions. This summary is provided on a form called a D81
If you have not reached an agreement and you are negotiating a settlement with your ex, or an application is made to the court for the court to decide, you will have to disclose your financial positions to each other and this is done by completing a form called a Form E
These two forms are very different. The D81 is just a summary of your positions, not backed up with evidence. Of course, you have to be truthful because if it is later discovered you have not been, the order made can be overturned and the whole process started again, causing more stress and costs than if your solicitor had dealt with the case in the first place. The Form E is more more detailed and has to be accompanied with documentary evidence of your financial positions
The forms are exchanged with each other so that you both have full information about each other’s financial position to enable you to decide if your agreement is fair, or, what sort of settlement you should be looking at. It enables your solicitor to provide informed advice on these points too. A court will not make an agreement into an order unless it is fair and will be looking to make an order reflecting fairness if making a decision for you. This can only be done if you have each disclosed your true financial positions to each other
There are steps that can be taken by a court if one party is trying to hide assets or being untruthful generally and one of the sanctions can be imprisonment
Please don’t hesitate to contact me if you require more detailed advice on this matter