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Acrimonious Divorce - How to ensure suitable Financial Disclosure?
TL;DR: In a particularly messy divorce where there is a big financial disparity between ex-partners, how do you ensure that the other side have disclosed all financial records? How do you know/prove they have disclosed everything?
Background:
- Close family member (who is not financially-savvy) is going through a nasty divorce - two children involved, arguing via solicitors over every detail, legal fees racking up reaching 6 figures per side and counting…
- My parents are footing the legal bill out of their retirement savings - they can ill-afford it, and the other side knows this and seems to be dragging out proceedings in an effort to exhaust their resources. I am posting on their behalf (at their request) as they are getting exasperated at the rising cost of eye-watering legal bills, and are worried for their daughter and her financial future.
- Other side (he) has a successful career - earns approx. £300k per year.
- She worked initially when they were together, before giving up work to have children, now working again following separation 18 months ago but on low income.
- Reason for divorce is controlling behaviour and financial abuse - police were involved and he exerted an unusual/alarming level of control. She purportedly had little to no knowledge of the household financials, was paid an "allowance" each month to cover day-to-day household expenditure (bills, looking after the children etc.).
- He has been sparodic/erratic in disclosure - drip-feed of random statements/information and sent large number of queries over lots of items which are virtually immaterial in their divorce proceedings, which is seemingly designed to confuse/frustrate and delay.
- FDR has already been postponed multiple times due to outstanding questions.
- It is not his first rodeo in terms of divorce (third times' the charm) but is her first.
Despite high-earnings and a home worth 7 figures, on paper from the information disclosed to date and with mortgage balance outstanding she would end up owing him money. Statements provided show nil savings and do not account for a monthly spend of £14-15k/month.
Obviously there are two sides to every story, but I'm surprised (having been lucky enough never to have go through this myself!) that there is not more of a compulsion to provide a full and frank disclosure about finances, so that the courts can make their decision. As a discerning MSEr, I often whip out the spreadsheet with the wife to walk through the latest financial debate (despite her eye-rolling!), so I don't think I'd get away with hiding anything!
I am presuming it would be unethical and illegal to perform a credit search on the other side. What other avenues are open to people to ensure their partner has disclosed all of their information? Obviously, in an ideal world, divorcing partners would (should?) have an idea what to expect from the other side's financial disclosure, but in this scenario she was very much in the dark and he is presenting a very dim picture of his finances which is off-kilter with his salary (which has belatedly been evidenced via payslips), which has been at a similar level for 15+ years.
Thank you in advance!
Comments
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This is what the solicitor who is charging '6 figures and counting should be assisting with.
The reason you don't want to deliberately omit or misrepresent your financial situation is because it is a serious breach of the legal requirements and it significantly hamstrings credibility in divorce proceedings. Failure to provide accurate information can lead to things like fines, but potentially worse would be court-ordered non-favourable decisions.
Really the solicitor and your family friend should be working to challenge the disclosures, if they have real reason to believe they are false.
In terms of equity - it should be relatively simple to compare an estate agent valuation of the property to a mortgage statement (though appreciate easier said than done).
Have pensions been disclosed?Know what you don't0
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