What is a ‘Form E’ and how should I prepare it?

When separating, whether you are attending mediation, negotiating through solicitors or involved in court proceedings or arbitration, the Form E is an important document that allows for detailed insight into an individual’s financial position.

Since the information in the Form E becomes the basis for negotiations and offers within divorce and separation proceedings, it is crucial that it is carefully drafted, so that your position is put forward in the clearest and most helpful way possible.

What exactly is a Form E?

The Form E is a comprehensive financial statement. It provides information and documentary evidence relating to an individual’s assets, liabilities, and income, including:

• Property – the family home and any other properties
• Bank and building society accounts
• Investment
• Personal belongings
• Liabilities, such as monies owed on credit cards and loans
• Business interests
• Pensions
• Current and future income from all types of employment
• Current and future estimated expenditure.

Alongside this information, the Form E also asks important questions, such as whether any changes to the financial position are expected, or whether significant changes have already occurred. It is also necessary to estimate future outgoings, for yourself and any children.

The Form E, therefore, allows both individuals the opportunity to clearly set out the extent of their assets. This information can then be used to either formulate a settlement proposal or assist the Court in determining what a fair division of the assets looks like.

Do I need to prepare a Form E?

If a Court application has been made, the exchange of Forms E is a mandatory step that must be taken before the first hearing (named the ‘First Appointment’). Due to the usefulness of the Form E, however, a voluntary exchange may be suggested by either individual, or by their mediator or lawyer.

Tips for completing the Form E

Although the Form E is relatively user-friendly, there are a number of useful tips to bear in mind.

1. Transparency is essential
In family law, there is a strict requirement to provide ‘full and frank’ disclosure. Where there is a failure to act in accordance with this duty, there is a danger that any agreement reached could be reopened or set aside, risking a reassessment of the entire settlement as well as a potential costs order made against those who fall foul.

Because of this, it is essential that the Form E includes, for example, details of all bank accounts (even where the balance is £0) and details for each pension (even if one plan is small in value). Importantly, this duty continues throughout the entire process and so, if there are changes to an individual’s financial position, this must be disclosed.

2. You might need more information before clarifying your position
When approaching the end of the Form E, there are a number of questions which ask what kind of order the individual would like the court to make. Often it is not possible to complete this section until financial information has been exchanged.

It is important to bear in mind that you can confirm your position after exchange. Following exchange of Form Es, you will be much better placed to review the total assets available and what kind of order this supports.

3. You can ask questions!
The Form E is not conclusive and is often the first step in understanding someone’s financial position. As such, it is important to remember that, once Forms E have been exchanged, further questions can be asked about its contents by way of a document named a ‘Questionnaire’. Here, a range of enquiries can be made relating to, for example:

• The value of an asset
• Any missing assets, pension provisions, interests or sources of income
• Explanations for estimated income or expenditure
• Any discrepancies within the documents provided.

The purpose of any question, however, should be to obtain necessary information in a way that is focused on what information will enable productive negotiations and provide key context.

4. Help is out there
If at any point you are unsure, you should not be afraid to seek support. We can ensure that you have fully completed your Form E and have appropriately addressed anything particular to the circumstances of your family.

If you have any questions about how best to complete your Form E, or require support with your separation or divorce, please do not hesitate to contact a member of the Family team at Thomson Snell and Passmore LLP by telephone on 01892 510000 or info@ts-p.co.uk.