Disclosure, Disclosure, Disclosure!

As Family Law Solicitors advising clients in relation to their financial settlements upon divorce we are very much aware that our frequent reminders to clients of their obligation to be open and honest about the extent of their financial interests can seem rather tiresome.

However, the importance placed by the Courts upon parties’ honesty about their finances was exemplified in the High Court last week when Scot Young, a former property magnate, was sentenced to six months’ imprisonment for failing to disclose his assets in his divorce case. Specifically, Mr Young refused to disclose what had happened to £400 million of his wealth which he claimed was lost following a failed property transaction in Moscow. In proceedings brought by his former wife for his breach of a 2009 Court Order to pay her £27,500 per month maintenance, Mr Young was described by Mr Justice Moor as having “flagrantly” breached the Court’s orders to disclose what had happened to his fortune. Consequently, he was imprisoned for contempt of court.

Sentences of imprisonment are unusual in divorce cases for non-disclosure of assets. We have been involved in a case where the other party has received a suspended sentence of imprisonment for failing to disclose credit card statements as ordered by the court. This case involved modest finances and a rather stubborn former spouse who did not want to co-operate. As a result they now have a criminal record.

The case of Scot Young is a reminder to us all of the importance of honesty throughout the Court process. ‘Disclosure’ is not simply an excuse for your solicitor to nag you (!) or an exercise to run up costs. Whilst in the majority of cases the Court may simply draw adverse inferences upon one party’s refusal to provide the court with information about their financial position, in others it can result in significantly greater consequences.

Should you require any further advice from our Family Law Team then please feel free to contact Amy Walpole, Partner, or Sophie Key, Solicitor, on 01603 675648 or email matrimonial@rogers-norton.co.uk.