Form E Divorce Solicitors

Including a current valuation of any properties owned is good practice but not obligatory unless one has been obtained within the last six months. Ideally, an up-to-date valuation is provided for all properties owned unless both parties fully agree on its current market value. 

A further common omission is an up-to-date mortgage redemption statement, showing the amounts outstanding for any mortgages secured against the properties. These should always be obtained and should be current.

All bank accounts, building society accounts, and National Savings accounts held by either party over the previous 12 months, including joint accounts, must be fully detailed in Form E. 

You will need to set out the name of the bank or building society, the type of account, the account number, the names of the account holders, the current balance, and that party’s share of that balance.

It is surprisingly common to find that bank accounts have not been disclosed, only revealed after questions have been raised later. Often bank statements are not provided for the necessary period – i.e. a full 12 months – or they are illegible, or certain periods are missing, or one statement merges into another statement, making it impossible to clarify what accounts are held and what the balances are.

To avoid this problem, draw up your bank details with professional help if possible. A family law firm can help you with this.

This includes PEPs, ISAs, TESSAs, National Savings, bonds, stocks, unit trusts, investment trusts, gilts, and other quoted securities. 

These must be disclosed, giving the full name of the investment, the type of investment, the size of the holding, its current value, the names of all parties with an interest, and the current value of that party’s interest.

The key documentation required in support will be the last statement or dividend counterfoil for each investment.

All life assurance (endowment) policies must be disclosed even if they have no surrender value and payout on death only. If they do have a surrender value, that should be included.

Insurance and similar financial instruments can be more difficult to understand than regular income. As such, we recommend talking with family law solicitors and similar third-party professionals when filling in these sections of Form E.

Details of all monies owed to a party must be included, as well as all cash sums held more than £500. Similarly, all personal belongings individually worth more than £500 must be included too. Often valuable items of jewellery or family heirlooms are excluded when they should be disclosed.

All liabilities should be disclosed, with details of who the debt is owed to and the amount.

Interestingly, Form E does not require supporting documents to be provided for this. Ideally, these should be included to save time, as the other side is likely to request up-to-date statements for verification.

If capital gains tax might be payable, then it is good practice and expected that a calculation should be included in Form E, as clearly this affects the net value of the assets. 

As Justin Law has a forensic accountancy team, these calculations can be undertaken in-house; contact our family solicitors for more information today.

There are detailed sections of Form E for any business assets or directorships. These need to be completed with supporting documentation, including business accounts for the last two financial years and any documentation that values a party’s interest: either a formal valuation or otherwise, with all directorships held or having been held in the last 12 months detailed.

As the parties’ pensions are often valuable items in the pool of matrimonial assets, the court can consider these, so full details of all pensions need to be provided in Form E, together with an up-to-date cash equivalent (CE).

The CE is an important document that the court requires for the initial valuation of all pensions held. As they can take quite a long time to obtain from the pension provider, it is good to ask for these at a very early stage to avoid any delay in the proceedings.

Pension providers are obliged by law to provide this information and documentation to the pension scheme member, free of charge, annually. In certain cases, the cash equivalent may not be an adequate valuation.

In those cases, it may be necessary to obtain an actuarial report on the pensions held, but this would have to be ordered by the court at the first appointment hearing.

Parties to divorce must also fully declare their income from all sources, whether from employment, self-employment, a partnership, or investments – i.e. dividends, interest, rental income, state benefits, pensions, or any other source.

Supporting documentation must be provided for each type of income. So, for example, for PAYE employment, the P60 for the last financial year will be needed, along with the last three wage slips they received and the last form P11D if this is relevant.

Each party will also be required in their Form E to set out a schedule of their monthly or annual income needs, both for themselves and for any children, as well as their ‘capital needs’ – i.e. the funds they may require to purchase a property or replace a motor vehicle or undertake essential repairs on their home.  

It is good practice to obtain details of several suitable properties similar to the former matrimonial home to assist the Court in establishing the costs related to that party’s housing needs. This is often not dealt with at an early stage, but it is preferable to do at the outset to establish housing needs.

Other sections towards the end of Form E require details of any significant changes in assets or income over the preceding 12 months or in the following 12 months. 

Further sections allow comments upon relevant factors such as contributions or inheritance prospects or conduct. 

It should be remembered that in the case of the latter, only the most serious misconduct should be detailed and only if it is relevant to the financial issues at hand.