Can my spouse hide assets in divorce?

Full Financial Disclosure

You and your former partner are under a strict legal duty to provide full and frank disclosure of all your assets, including bank accounts, property, investments, pensions and any other financial interests, so that they can be considered in any future settlement.

Occasionally one party might attempt to hide assets. If a party provides false information about their financial affairs like underreporting income, overpaying taxes to get a late refund, undervaluing businesses or assets, moving money into secret accounts, pretend to loan money to friends or family, delaying bonuses, commissions or contracts and/or hiding physical items like cash, jewellery and collectibles of significant value, thar party will face serious consequences.

What’s legal and what isn’t?

Hiding assets in a divorce can lead to a party having to pay the other spouse’s legal costs, receive a smaller share of the assets, or having the entire settlement reversed. Proceedings for contempt of court may be brought against that person. In addition, the court might potentially reopen the case to issue a new, often more punitive, financial order. The court can also set aside any previous settlement and re-evaluate the division of assets to account for the hidden ones, and the spouse who hid assets will likely lose credibility with the Judge.

However, if you believe that certain assets should not be included in the division of finances (e.g. because they were acquired before your marriage) then you should discuss this with your solicitor at your earliest opportunity. These assets should still be declared and it would be for the Judge to decide whether they should be considered in the financial settlement.

What are some of the signs that your spouse may be hiding assets?

If you have seen unusual bank activity, cash withdrawals, unexplained transfers, or your spouse is reluctant to provide financial documents, that can be an indication that all is not well. Other things to look out for are sudden changes to account passwords, you stop receiving important financial documents like bank statements, property is transferred to other named individuals, or your ex suddenly starts investing in cryptocurrencies, which can be hard to trace.

What happens if you suspect your spouse is hiding assets?

Jackie Lee, Head of Family at Alsters Kelley said. “If you suspect your spouse is trying to hide assets from you, the first thing you should do is to consult a Family Solicitor – they will then advise you on your next steps. Your Solicitor may be able to apply for a third-party disclosure order, enabling them to obtain documents from organisations, like banks and HMRC. Alternatively they may want to enlist the assistance of a forensic accountant. It’s their job to look at bank and credit card statements, tax returns and business records to investigate any potential financial discrepancies, fraud, or other areas of financial misconduct.”

Jackie continued. “Our experienced team of Family Solicitors can assist with any concerns you have over your spouse hiding assets during your divorce, or other issues you may be facing in relation to full financial disclosure”.

Fixed Fee Initial Consultation

For timely and quality advice and support from our team, we offer an Initial Consultation for a fixed fee of  £300 plus VAT, total £360. Please call 01926 356000 to arrange an Initial Consultation with a member of our team at one of our offices in Banbury, Coventry, Leamington, Nuneaton, Stratford-upon-Avon and Southam.