What Will Happen If My Ex Won’t Do a Financial Disclosure?

Brown vs Brown – The Serious Consequences of Failing to Disclose Financial Information

The case of Brown vs Brown is a good example of the court’s broad powers to enforce financial disclosure in family law cases. In this instance, Mr Brown failed to provide essential financial documentation, including his Form E (a form that details an individual’s finances in divorce proceedings) and the Cash Equivalent Transfer Value (CETV) of his pension. His refusal to comply with court orders ultimately resulted in a prison sentence.

District Judge Dodsworth, overseeing the case, made it clear that the court takes a firm stance on contempt in financial remedy cases. Despite multiple opportunities to correct his conduct, Mr Brown continued to flout the court’s orders, leading to a contempt finding. His persistent failure to disclose financial information led the judge to issue a custodial sentence of 19 days, divided between two counts of contempt. This case is an important reminder that the courts not only have the power to demand a full financial disclosure, but also to impose severe penalties when individuals fail to comply.

The breakdown of the 19 days was as follows:

• 14 days for the contempt of court (failing to apply with its directions)
• 7 days for the failure to promptly comply with the court’s order to file his disclosure
• Less 2 days that he had already spent locked up, following the warrant being issued for his arrest.

The Court’s Power to Make Inferences and Enforce Disclosure

One of the most important lessons from Brown vs Brown is that courts have far-reaching powers when it comes to enforcing financial disclosure. In family law cases, the court requires both parties to fully disclose their financial circumstances to ensure a fair division of assets. When a party fails to do so, the court can take serious actions, including:

• Issuing fines or confiscating assets: If the court believes that one party is deliberately hiding or failing to disclose assets, it can issue financial penalties or even confiscate assets.
• Imprisonment: In extreme cases like this one, where there is “contumacious” (wilful) disobedience of court orders, a custodial sentence can be imposed. This is a last resort but demonstrates the court’s commitment to ensuring compliance.

Moreover, the court can draw inferences from a party’s failure to disclose. This means that the court might assume the worst about the party’s undisclosed financial assets, effectively deciding on the division of assets without the complete picture. In such cases, it is unlikely that their decisions would favour the party not complying with the disclosure.

Bottom Line – there’s No Escaping Financial Disclosure

Mr Brown’s case illustrates that failing to engage with the court is not an option and extremely unwise. The court gave him multiple opportunities to rectify his contempt, even issuing a bench warrant to compel his attendance after he failed to appear at earlier hearings. His refusal to cooperate, provide documentation, or offer any valid explanation led to his loss of freedom. And whilst 19 days may not seem like a lot, for a non-criminal situation like this, it would seem like an eternity for the one in jail.

This case is a cautionary tale: the court will not tolerate attempts to evade financial disclosure. Whether through fines, confiscation of assets, or imprisonment, the judicial system has numerous tools at its disposal to enforce compliance and ensure that both parties in a divorce case are treated fairly.

How Mediate UK Can Help

While the consequences of failing to disclose financial information in court are severe, many individuals may find the court process intimidating and costly. This is where Mediate UK offers a valuable alternative.

At Mediate UK, we specialise in family mediation, which provides a more cost-effective and amicable approach to resolving financial disputes. Through mediation, couples can work together to disclose their finances transparently and reach an agreement without the need for lengthy and expensive court proceedings or solicitor letters. Family mediation not only saves time and money but also helps to reduce the emotional strain of a contested divorce.

By using mediation services, couples can exchange Form E or use our internal disclosure forms and other financial information in a less confrontational setting, making it easier to come to a fair agreement. Mediate UK ensures that both parties have the opportunity to engage with the process fully and we provide guidance to ensure that all necessary documentation is provided upfront. In doing so, we help avoid the stressful and often punitive consequences of failing to disclose, as seen in Brown vs Brown.

Summary

The case of Brown vs Brown serves as a stark reminder of the court’s power to enforce financial disclosure and punish those who fail to comply. For those seeking to avoid the serious consequences of non-compliance, Family mediation offers a much more cost-effective and less stressful alternative.