Why disclosure is the cornerstone of a fair divorce settlement

Navigating divorce can be a complex process, especially when it comes to financial matters. One key step to ensure a fair and equitable outcome for both parties is to fully disclose all assets and liabilities.

Many people may feel hesitant to share their financial information, viewing it as a private matter. However, failing to disclose assets or liabilities can have significant consequences, potentially leading to legal issues and an unfair settlement.

The advisers at Sousa Law have guided countless individuals through the divorce process, so we understand the importance of open and honest communication regarding finances. In this article, we’ll discuss what financial disclosure involves, why it’s essential, and the potential consequences of non-disclosure.

What does disclosure involve?

Full disclosure involves both parties providing complete and accurate information about their financial affairs, including:

• Income: Salaries, wages, bonuses, commissions, and other forms of earnings.
• Assets: Property, investments, savings accounts, retirement funds, business assets, and other valuable possessions.
• Debts: Credit card balances, loans, mortgages, and other financial obligations.

Why is full disclosure important in divorce?

Disclosure is essential for a fair, equitable, and legally sound divorce process. Here’s why:

• Full disclosure provides a comprehensive view of both parties’ financial circumstances. This means that everyone involved in the divorce proceedings has a clear understanding of the assets, liabilities, and income of both parties.
• Full disclosure prevents one party from hiding assets or debts, allowing for fairer outcomes.
• By having a complete picture of both parties’ finances, the court can make a more equitable determination of how assets and debts should be divided.
• Being upfront about finances reduces the likelihood of post-divorce disputes.
• Full disclosure of financial information is often a legal requirement during divorce proceedings. Failure to comply with these requirements can result in penalties or other adverse consequences.

What happens if you don’t provide full disclosure?

Many clients are uncomfortable with the idea of full and transparent disclosure. They might see it as too costly, unnecessary, or an invasion of privacy. However, failing to disclose can lead to several issues:

• Without complete information, solicitors cannot provide thorough advice on the proposed settlement, which could result in agreements that are not in the client’s best interests.
• Even with a DIY settlement agreement, the court has the authority to review and approve it. If the agreement is considered unfair, the court may reject it.
• Even if the parties reach a settlement, the court may still require a Statement of Information, which involves disclosing assets.

Disclosure is more than a legal requirement; it’s a vital step towards a just divorce. By sharing everything openly, you can make informed choices, safeguard your rights, and increase the odds of a positive outcome.

Personalised family law solutions from Sousa Law

Divorce can be both emotionally and legally challenging, but you don’t have to go through it alone. At Sousa Law, we understand the emotional toll it can take. Our experienced attorneys are here to provide compassionate legal guidance every step of the way.

Whether you’re just starting to think about divorce, negotiating a settlement, or need help modifying an existing agreement, we’re ready to assist. We’ll work closely with you to understand your unique situation and protect your rights.

Our goal is to find solutions that work for everyone. Whenever possible, we’ll explore alternatives to court, like collaborative practice or mediation. But if going to court is necessary, we’ll be there to guide you through it.

Ready to take the next step? Book a consultation online or call us on 02380 713060. We’re here to help you navigate this challenging time.