The Importance of Financial Disclosure in Pre-Nuptial Agreements
The Court of Appeal has recently issued its decision in Helliwell v Entwistle [2025] EWCA Civ 1055, which highlights just how crucial financial disclosure is when entering into a pre-nuptial agreement.
Why does disclosure matter?
In divorce proceedings, full and frank financial disclosure — meaning clear, accurate, and complete information about income, assets, and liabilities — is essential. It ensures fairness and transparency, giving both spouses and the court a clear picture of the family’s financial situation. Without this openness, it is impossible to reach a settlement that is both fair and workable.
Its role in pre-nuptial agreements
The same principle applies to pre-nuptial agreements. Only through a genuine exchange of financial information can both parties properly assess what they may be giving up or gaining should the marriage break down.
How much disclosure is required?
The leading case on this issue, Radmacher v Granatino (2010), established that nuptial agreements should generally be upheld when entered into freely, with both parties fully understanding the consequences — unless enforcing the agreement would be unfair. Importantly, the court clarified that pre-nuptial agreements do not necessarily require the same level of disclosure as divorce proceedings. Instead, what matters is that each party has the information that is material to their decision to sign the agreement.
In practice, this means that while some couples may choose to provide full and detailed disclosure, others may be satisfied with less detail. However, what Helliwell v Entwistle makes clear is that a party cannot claim to have provided full disclosure if they knowingly conceal assets.
The consequences of non-disclosure
In Helliwell, both parties agreed in their pre-nuptial contract to provide full and frank disclosure. The wife, however, revealed only 23% of her wealth, deliberately concealing nearly £48 million. The court found this to be fraudulent and ruled that the non-disclosure invalidated the agreement. In addition, the wife was ordered to pay a significant costs award in the husband’s favour.
The key takeaway
When drafting pre-nuptial agreements, full and frank disclosure is strongly recommended. Not only does it protect both partners’ interests, but it also ensures that the agreement remains valid and enforceable if tested in court.
