Divorce requires complete financial transparency from both parties to ensure that you are making informed decisions, and assets are divided fairly and equitably. When one spouse attempts to conceal, transfer, or undervalue assets, it undermines the integrity of the process and can result in an unjust settlement. Such behaviour not only damages trust but can also prolong proceedings and increase legal costs.
The courts treat the concealment of assets very seriously. Any attempt to hide, disguise, or misrepresent financial information can lead to significant legal and financial consequences, including the reopening of settlements, adverse cost orders, and even criminal penalties in severe cases.
What Does Hiding Assets Mean?
Hiding assets can involve a range of behaviours, from failing to disclose bank accounts or property to transferring funds to friends or relatives. Some individuals may attempt to undervalue business interests, delay bonuses, fail to provide full transparency of crypto and other digital assets or dispose of assets to reduce the apparent value of the marital pot.
Such conduct breaches the duty of full, frank and honest disclosure required in all divorce proceedings. The court depends on accurate financial information from both parties to ensure that any settlement reached is fair, transparent, and based on the true value of the assets involved.
How Are Hidden Assets Discovered?
The process of financial disclosure requires both parties to provide a full and accurate statement of their income, assets, debts, and liabilities. Where one person suspects dishonesty or concealment, a solicitor can take steps to investigate and verify the information provided. This may include reviewing bank statements and cross referencing across accounts, crypto walletscompany accounts, property records, and other financial documents.
In more complex cases, forensic accountants may be instructed to trace transactions, identify concealed funds, or uncover assets held through third parties or offshore accounts. The court also has the authority to order further disclosure and compel individuals or organisations to produce relevant financial information where necessary.
What Action Can the Court Take?
If it is proven that one party has failed to disclose assets or has deliberately misled the court, the court can impose serious penalties. These may include:
- Drawing inferences about what assets exist, and the honesty of the partie/s
- Reopening or varying the financial settlement
- Awarding a larger share of assets to the innocent party
- Ordering payment of the other party’s legal costs
- In extreme cases, imposing fines or imprisonment for contempt of court
The court’s primary objective is to uphold fairness and transparency. Any attempt to conceal assets or provide false information is treated as a breach of trust and can lead to a significantly less favourable outcome for the party at fault.
How to Protect Yourself
If you suspect your former partner is concealing assets, it is important to act quickly and seek specialist legal advice. Avoid making direct accusations without evidence, as this can increase tension and hinder resolution. Instead, your solicitor can advise on the correct legal steps to obtain disclosure and ensure a full and fair investigation.
Collecting relevant information early, such as bank statements, company accounts, and property records, can help strengthen your position and reduce the risk of assets being hidden, transferred, or depleted before a settlement is reached.
Key Considerations
Transparency and honesty are fundamental to achieving a fair financial settlement. Any attempt to conceal assets can have serious legal and financial consequences. Providing full and accurate disclosure not only protects your interests but also enables the court to reach a fair, balanced, and lasting resolution.
We Can Help
Discovering that your former partner may be hiding assets can be distressing and complex to resolve. Our family law specialists have extensive experience in financial disclosure and asset tracing. We can help you take swift and effective action to uncover hidden assets and secure a fair settlement.
If you believe your ex-partner is concealing assets in your divorce, contact us to discuss your situation and explore the next steps.
