In the recent judgement of VTY v GDB, a wife has been awarded more than £1.2 million after a judge harshly criticised the husband for failing to be open in the financial information he provided to the Court. Describing his disclosure as “woeful”, the judge said he had “done himself absolutely no favours at all”. In this article, the head of our matrimonial department, Fay Rothery, examines why honesty really is the best policy.
Let’s face it: divorce is tough enough without money secrets making things messier. That’s why financial disclosure is such a big deal in the English courts. Both sides have to be open about what they’ve got, what they earn, and what they owe. It’s not just about ticking boxes—it’s about making sure things are fair.
What’s Financial Disclosure?
It’s basically showing your hand. You fill out Form E, attach your bank statements, payslips, property details, and so on. The idea is that both parties (and the court) know exactly what’s in the pot before anyone starts divvying it up.
Why Bother?
- It’s About Fairness
If you want a fair split, you both need to know what’s actually there. Hiding things or “forgetting” to mention an account can totally throw things off. The court can’t make a fair decision if it doesn’t have the full picture.
- It Makes Settling Up Easier
When everyone’s honest, it’s way easier to reach an agreement—sometimes without even going to court. No one likes surprises, especially when it comes to money.
- It’s the Law
You’re actually required to be honest about your finances. If you fudge the numbers or leave things out, you could get into serious trouble- you may have to pay the other side’s legal costs, and will potentially commit perjury, a criminal offence, which could leave you facing a fine or even imprisonment.
What Happens If You Don’t Disclose Everything?
Short answer: nothing good.
The Court will mistrust you and can make assumptions about what assets you really hold and what income you have and adjust awards accordingly, as happened in the case of NG v SG [2011] EWHC 3270 (Fam)
If the court finds out you’ve hidden something, they can rip up the agreement and start over. There are some big cases where this has happened, like:
And now, the recent case of VTY v GDB has reinforced this principle. The court made it clear: if you don’t play fair with disclosure, you risk having any financial order set aside. The judge in that case didn’t mince words—full and frank disclosure isn’t optional, and the consequences for non-compliance can be severe, including costs penalties and the reopening of settled matters.
It’s Not a One-Time Thing
You can’t just fill out the form and forget about it. If your situation changes—maybe you get a bonus or pay rise, or you inherit some money—you need to update the info. Keeping things current is part of the deal.
Summary of Practical Advice
- Disclose all assets, income, debts, and liabilities, regardless of perceived relevance.
- Ensure all information provided is accurate and up to date.
- Understand that non-disclosure can lead to significant legal and financial consequences, including the risk of perjury.
Bottom Line
Being open about your finances isn’t just about following the rules—it’s about making sure you both get a fair shot at moving on. It saves time, money, and a lot of hassle in the long run. So, as tempting as it might be to keep that secret savings account under wraps, its likely to come out in the wash anyway and when it does, you will be penalised for not being open about it in the first place.
If you need advice and assistance in providing financial disclosure, or securing the same from your spouse, Fay, or our other specialist matrimonial finance solicitors can help. Call our office on 01785 336617 or email family@sflsolicitors.co.uk to arrange a free initial consultation.