14 October 2015
Divorce Settlements Can be Renegotiated due to Non-Disclosure of Finances in Divorce Proceedings
Two businessmen have been found guilty of misleading their ex-wives in court by not fully disclosing their finances and may now have to pay extra money on top of their original divorce settlements.
The decision was made at the highest court in the UK. The Supreme Court heard the cases over three days in June this year and seven judges ruled in favour of the ex-wives who had been misled by their ex-husbands lies. The husbands in question, Charles Sharland and Bhadresh Gohil, were dishonest about their assets with the judges in their original divorce proceedings.
Internet Entrepreneur Mr Sharland lied about the value of his company Appsense. His ex-wife accepted £10m by way of financial settlement on divorce, believing this to be half of his fortune. But the virtualization technology company was valued at more than £600m by the financial press and Mr Sharland lied about the future floatation plans for the company.
Meanwhile during a criminal trial for money laundering in 2010, it emerged that Mr Gohil hid his true wealth during his divorce proceedings in 2002. As a result his ex-wife, who had accepted £270,000 and a car as financial settlement, can now renegotiate the settlement figure.
Slater and Gordon’s Head of Personal Legal Services Andrew Newbury said: “The judgment today is absolutely the right decision for the Supreme Court to have made. Divorce proceedings are based upon the well-established principle of giving full, frank and clear disclosure and laying cards on the table. For the court today to have taken a different approach would fly in the face of this principle.
“Going forward this will heighten the need for all parties to be completely transparent. I have several clients who have been awaiting this decision and we expect to see an influx of clients bring proceedings where there has been a failure to bring full disclosure.”
If you are going through a divorce, you have to provide a ‘full and frank’ financial disclosure that details all your financial assets. You must complete what is known as Form E with details that set out your financial position and provide supporting documents as evidence.
Learn more about financial disclosure upon divorce by reading What is Form E? and What documents do I need to provide by way of Financial Disclosure?
If you need advice about finances after a separation or on financial disclosure after your divorce call the Divorce Solicitors at Slater and Gordon Lawyers for an initial consultation on freephone 0800 916 9055 or contact us online.