Tees were instructed on a matter where the client’s former spouse had repeatedly failed to provide financial disclosure during proceedings, placing her in contempt of court and consequently requiring us to commence committal proceedings.
What are Financial Remedy Proceedings?
In Financial Remedy Proceedings, all parties have a duty to provide full and frank financial disclosure. This includes but is not limited to, completion of a Form E. The Form E is a standard financial disclosure document which sets out your income, assets, debts, and expenses. Its purpose is to ensure both parties and the court have a full and honest picture of the overall finances so that a fair financial settlement can be reached.
What happens when one party refuses to provide financial disclosure?
For context
Jenny* (our client) had separated from Sarah* for almost a year before she approached Tees to assist with the dissolution of their marriage and consequential financial arrangements. They initially attended mediation, but Sarah provided limited financial disclosure during this process and did not provide any clarity on how she envisaged matters to be resolved, so the court’s assistance was sought by way of a Form A (an application to begin Financial Remedy Proceedings).
Usually, the first thing that the court will ask you to do, is provide financial disclosure by way of a Form E, which should be exchanged with your former spouse in advance of the first hearing. Sarah did not do so.
At the hearing, Sarah was criticised for failing to provide her Form E. The Judge decided that she would have a further three weeks to complete her Form E, but that this order would be accompanied by a penal notice. This meant that if Sarah failed to comply with the order, she could be held in contempt of court, and may receive penalties such as fines, imprisonment or seizure of assets.
Sarah did not produce a Form E. Jenny had no option but to apply for Committal Proceedings to enforce the penal order. She was concerned that, without some form of formal reprimand, Sarah would continue to delay the proceedings and hinder the prospects of reaching a settlement.
What happened next?
Jenny’s committal application was listed for a hearing. At the hearing, the Judge was satisfied that Sarah was guilty of contempt of court by disobeying the orders. She was given a final opportunity to provide her Form E within the next seven days to dismiss the contempt and was ordered to pay Jenny’s costs in making the committal application.
Sarah’s Form E was received seven minutes prior to the deadline.
The parties were then able to fully consider the overall financial position, raise questions of each other’s disclosure and engage in meaningful settlement discussions. The parties were able to reach an agreement, through solicitor correspondence, without the assistance of the court.
Why Tees made a difference
Throughout the process, our team used their technical legal expertise to provide clear and strategic advice, taking decisive action when repeated failures to comply with court orders threatened to undermine the process. We were able to successfully guide the client through an extremely challenging period of her life, which is only intensified when one party refuses to engage with proceedings.
By identifying that committal proceedings were an appropriate and proportionate step, we ensured the court’s orders were taken seriously, secured compliance with the disclosure obligations, and helped move the case forwards towards a resolution.
Giving you the full picture
Our experienced family law team can guide you through the process, help you understand your position, and build a strategy tailored to your circumstances. Contact Tees today to arrange a confidential discussion and find out how we can support you.
Learn more about divorce financial settlements.
*Names have been changed to protect the privacy of those involved.
