If you’re going through divorce and entering mediation, one of the first things you’ll be asked to do is provide full financial disclosure. It might feel like a big ask, especially if you value your privacy or have concerns about how your information will be used. But in reality, it’s one of the most important steps in the process. Here’s why it matters, how it works and what happens if it’s not done properly.

What is financial disclosure?

Put simply, financial disclosure means being transparent about your money and assets. That includes everything from your salary and savings to your debts and pension pots. Both parties are expected to give a full and accurate picture of their finances before discussions move forward. You’ll usually be asked to complete a standard form and provide documents to back it up—things like:

• Payslips or income statements
• Bank and savings account statements
• Pension valuations
• Mortgage and property details
• Information about investments
• Credit card balances and outstanding loans

Your mediator will help make sure both parties are on the same page and that the information is exchanged fairly and clearly.

Why does it matter in mediation?

Mediation is built on cooperation. It only works if both people engage in good faith. You can’t negotiate a fair outcome if one side doesn’t have the full picture—or if one person is holding back crucial information. Here’s what proper disclosure does:

1. Builds trust from the start

Knowing that both parties are being open helps create a more balanced and respectful environment. That sets the tone for everything that follows.

2. Makes negotiations more grounded

Guesswork leads to bad decisions. Clear, honest information allows each person to think realistically about what they need and what’s possible.

3. Avoids problems later on

If you skip disclosure or gloss over key details, any agreement reached could fall apart. Worse, you might find yourself back in court. Full disclosure protects both parties and reduces the risk of future disputes.

4. Speeds things up

It might seem like paperwork at first but getting it done early avoids delays. You’ll waste far more time going back and forth later if the basics aren’t covered properly.

What happens if someone refuses?

Mediation can’t continue if one person refuses to be transparent. If the process breaks down because of a lack of disclosure, the other party might have no choice but to go to court, where disclosure is mandatory. The courts take this seriously. If it turns out someone tried to hide money or mislead the process, it could affect the final settlement and damage their credibility.

Is disclosure legally binding?

The act of disclosing information in mediation isn’t legally binding but the agreement that comes out of it can be. Once both sides have negotiated and agreed on the terms, a solicitor can help draft a consent order. If the court approves it, it becomes legally enforceable. That’s why it’s essential to get the details right from the beginning.

What if your finances are complicated?

They often are. Divorce doesn’t only affect people with a single income and a joint account. If there are business interests, multiple properties, overseas assets or trusts involved, it’s still possible to reach a fair agreement—but you may need some additional support.

Mediators can recommend involving:

• Financial advisers
• Pension experts
• Property valuers or accountants

This helps ensure the discussion is based on clear and reliable information, especially in more complex cases.

What if one person handled all the finances?

It’s not unusual for one partner to know less about the household finances. That’s why financial disclosure is so important—it gives both parties equal access to the same information. Your mediator can guide you in asking the right questions and requesting the documents you need. If the process feels unbalanced or one side is being obstructive, mediation might not be the right forum. But in most cases, a structured approach makes things much clearer for everyone involved.

How is the information used?

The point of financial disclosure isn’t to scrutinise every spending habit—it’s to put the facts on the table so that decisions can be made fairly. Once both sets of documents have been reviewed, your mediator will help you:

• Understand what’s available to divide
• Discuss needs, responsibilities and future plans
• Explore fair, workable solutions

You won’t be pressured into making decisions. But you will be better placed to make informed choices that both parties can live with.

Will disclosure slow things down?

No. It can take a few weeks to gather everything, especially if you need to contact pension providers or request property valuations. But skipping it—or doing it half-heartedly—only causes more issues later. By getting it done early, you keep the process moving and reduce the risk of misunderstandings or stalled sessions.

It’s not about giving up control—it’s about making smart decisions

You can’t agree on a fair split if one side doesn’t know what’s on the table. That’s why financial disclosure is a fundamental part of financial mediation. It’s not about opening up your life to judgment—it’s about laying the groundwork for a clear and lasting agreement. When handled properly, it leads to better outcomes, less conflict and a more efficient path forward.

At Family Law Mediation, we help clients through every step of the process, making sure disclosure is clear, manageable and focused on outcomes. If you’re starting divorce mediation and need guidance on how to handle your finances, we’re here to support you. Get in touch to learn how we can help with your divorce and financial disclosure needs.