Last updated on June 29th, 2015 at 10:11 am

During divorce, financial matters are always one of the more complex and daunting issues to settle.  Of course it’s preferable if both parties are open and honest about their financial circumstances, but it isn’t always the case.

Some take the view that not all of their assets should form part of the pot for division and hide them in order to thwart any claim.

What is disclosure?

Disclosure is the sharing of financial documents, such as bank statements, insurance and payslips, during divorce.  It plays an important role in enabling parties to agree how their assets are to be divided.

It is of course better, and more cost effective, if disclosure is given voluntarily, at an early stage, through mediation or solicitors.  In this case, a consent order will be drawn up and sent to a judge for approval. However, disclosure can be made compulsory by either party applying to court for an order.

What happens if your partner did not disclose all assets?

Of course not everyone is entirely honest when making disclosure.  So, what happens if, after a final order is made, you find out your former spouse has assets you were unaware of at the time?

On the 8th June 2015 news broke of two such cases which are now going to the Supreme Court.  Alison Sharland and Varsha Gohil have applied for their cases to be re-opened, alleging their former husbands had misled the Family Court by failing to disclose the true value of their matrimonial wealth. We eagerly await the judgements, which are unlikely to come until later in the year.

So what can the court do when it transpires that a former spouse has not made full disclosure? Should negotiations be re-opened if a financial order has already been made?

In the case of Alison Sharland the Court of Appeal judges agreed the former husband’s non-disclosure had been deliberate.  However, 2 out of 3 believed the original order shouldn’t be overturned, as, even though his evidence was misleading, full and honest disclosure wouldn’t have led to a significantly different outcome.

Where do we go from here?

That depends on the decision of the Supreme Court judges.  Many former spouses worry that, if the appeals are successful, the floodgates will open.

So what might encourage full disclosure?

• Threat of perjury charges.
• Imprisonment.  In 2013 Scott Young, a property tycoon, was jailed for 6 months after defying a Family Court order to reveal his true wealth.  This is a clear indication that courts view non-disclosure as a serious offence.

A lesson learned perhaps?  Be open and transparent during disclosure – or face the risk of your settlement being set aside for rehearing with less favourable terms imposed, costs sanctions being made against you, perjury or even prison!

For further advice and information about disclosure and divorce, please contact Nicola Cancellara (pictured) on 01246 508413 or email nicola.cancellara@graysons.co.uk