Financial Disclosure in Family matters and the Role of Forensic Accountants
When couples are resolving their finances after divorce (or the dissolution of a civil partnership), each party is required to disclose their financial circumstances and share this information with the other. The purpose of disclosure is to ensure openness and transparency so that constructive negotiations can take place—whether through mediation, solicitors, or, in some cases, with the court’s assistance. Learn more about financial disclosure from Resolution.
Evidence is required
Financial disclosure must be supported by evidence. This can include asset valuations, proof of income, explanations for expenditure, and other documentation. Solicitors carefully review this information to identify potential issues beyond those raised by the client. Where significant business interests are involved, expert input is often necessary. An accountant may be instructed not only to value the business but also to outline options for dealing with it within the financial settlement. Typically, a single joint expert is appointed, producing an independent report for the court, with costs shared between the parties.
However, disclosure can be far from straightforward. In more complex cases, or where trust between the parties is low, concerns or suspicions may arise—sometimes due to behaviour before separation, or after the disclosure process has begun.
Instructing a forensic accountant
In such circumstances, it may be necessary to instruct a forensic accountant. Acting as financial investigators, forensic accountants specialise in uncovering discrepancies, fraud, misrepresentation, or misconduct. They can help trace hidden assets, expose undisclosed wealth, and challenge misleading or false information. See how Lighthouse Consultants can help with forensic accounting in divorce cases.
When to instruct
A forensic accountant’s involvement can be requested at any stage of proceedings, but it is important to note that no evidence can be relied upon in court without the court’s permission. Ideally, any need for forensic expertise should be raised at the first hearing. If new issues emerge later, an application can still be made, though it may require a separate request to the court and the payment of additional fees. The UK Courts and Tribunals Service provides more guidance here
Is it justified?
Courts will only authorise the use of a forensic accountant where it is fully justified. They will not allow “fishing expeditions” based on suspicion alone. The expert’s role must be both necessary and proportionate—taking into account the value of the case, the costs involved, and any potential delays. Even then, the request may be opposed by the other party and is not guaranteed to succeed, particularly if made late in the process.
Forensic accounting fees
Forensic accountancy fees can be significant, depending on the scope and complexity of the work. If the court grants permission, it will also decide how the expert’s costs are to be allocated. Where a report is commissioned without prior court approval, however, the instructing party will be solely responsible for covering those costs at the outset. Get in touch with our forensic accounting team to discuss your situation.
