Mr Young has failed to comply with his duty to provide full and frank disclosure of his financial circumstances and the court’s indication that he will face prison if he continues to disregard court orders is a warning to those embarking on ancillary relief proceedings.
It is essential that both parties to ancillary relief proceedings provide full and frank disclosure of all circumstances material to the proceedings. Potentially, an order can be set aside if it is determined that there has been non-disclosure of information material to the case.
Each party must set out details of their financial circumstances by way of a Form E. This document requires the disclosure of all documents relating to a party’s financial circumstances, including bank and building society accounts, savings accounts, their employment status, pensions and business interests. Following exchange of forms E further disclosure may be requested at the First Appointment. Only a relatively limited number of cases will require further applications for disclosure after the First Appointment.
If one party is not fulfilling his or her duty of disclosure, applications to compel disclosure can be costly. In recognition of this, however, there can be cost sanctions against the non-disclosing party as it is likely to be considered as litigation misconduct. The court can also make adverse inferences against any party that is refusing to disclose.
The court has the power to make an order for specific disclosure or attend an ‘inspection appointment’ or be cross examined at court if they refuse to provide information material to the proceedings.
A party that continues to flout court orders and fails to provide full and frank disclosure may face the ultimate sanction of a penal notice and be left to consider the consequences of his or her (non) action from prison!
Leah Snape