Preparing Your Financial Disclosure for Mediation

If your mediation involves money or property, financial disclosure is the foundation everything else rests on. Without a full and honest picture of both people’s finances, no agreement can be fair. This guide explains what financial disclosure is, what you will need to gather, and how to prepare so your mediation runs smoothly.

What is financial disclosure?

Financial disclosure is the process of both people setting out, openly and honestly, everything they own, owe, earn and are worth. It covers assets, income, debts and outgoings. The purpose is simple: you can only divide things fairly if you both know what there is to divide. In mediation, disclosure is made voluntarily but is expected to be full and transparent, and both of you are entitled to see the other’s.

Why it matters so much

An agreement built on incomplete or inaccurate disclosure is not a fair agreement, and it may not be safe. If a settlement is later found to have been based on hidden or misrepresented finances, it can be challenged and even set aside by a court. Being open from the start protects both of you and gives any agreement you reach a solid foundation. It also tends to build the trust that makes mediation work.

What you will need to gather

Pulling your paperwork together in advance makes disclosure far less stressful. As a general guide, it helps to have:

Property

• An estimate or valuation of the family home and any other property.
• Recent mortgage statements showing the outstanding balance.

Bank and savings

• Recent statements for current accounts, savings accounts and ISAs.
• Details of any investments, shares or premium bonds.

Pensions

• A recent statement for each pension, including the Cash Equivalent Transfer Value (CETV) where available.
• Pensions are often the most overlooked asset, so do not leave them out, even ones from years ago.

Income

• Recent payslips, or accounts if you are self-employed.
• Details of any benefits, tax credits or other income.

Debts and outgoings

• Balances on loans, credit cards and any other debts.
• An outline of your regular monthly outgoings.

Business interests

• If you own or have a share in a business, details of it. Business valuations can be complex and may need specialist input.

Being honest, even about awkward things

It can feel uncomfortable to lay out your entire financial life, especially if there are things you would rather not mention, such as a debt your partner did not know about, or savings you think of as your own. But disclosure only works if it is complete. Anything hidden that later emerges can unravel the whole agreement. The mediator is impartial and is not there to judge; they are there to help you both reach a fair outcome, and that depends on honesty.

What the mediator does with it

Once you have both disclosed, the mediator helps you build a shared, agreed picture of the finances. This becomes the basis for your discussions about how everything should be divided. If your agreement involves property or finances, the mediator can prepare an Open Financial Statement, which records the disclosure that was made, alongside the Memorandum of Understanding that records what you agreed.

A word on advice

Mediation is not a substitute for legal or financial advice, and for anything involving pensions, business interests or significant assets, it is wise to take independent advice alongside the process. The mediator remains impartial and cannot advise either of you, but can help you both understand what information you need and where advice might help.

How to make it easier

The single best thing you can do is start gathering documents early, before your sessions rather than during them. A tidy set of statements and figures means your time in mediation is spent on the discussion that matters, reaching a fair agreement, rather than chasing paperwork.

This article is general information about family mediation in England and Wales and is not legal or financial advice.