Hiding Assets During Divorce

The majority of divorce cases are dealt with by way of a Financial Order which specifies who gets what with regards to finances and assets in a relationship. It is hoped that both parties will, in the first instance, disclose their assets and finances in an open and honest way, known as full and frank disclosure, so that the finances of both parties can be considered collectively and subsequently split fairly and adequately.

However, this is not always the case and one of the parties (or potentially both) may look to hide assets, such as overseas bank accounts, company shareholdings, and potentially even secret families, and not disclose the details of them in the divorce proceedings. There is also the possibility that a person may attempt to dispose of any assets by transferring them into the name of another person (such as a family member or friend) or by reducing their equity ownership of a property and spending or transferring the earnings from it.

Hiding assets during divorce

What information should be disclosed during a divorce?

The following documentation should be provided to the Court during divorce proceedings:

• A year’s worth of bank statements for each bank account
• Details of properties owned, along with valuations
• Pension statements
• Documentation in relation to income, such as payslips and company financial records

I suspect my partner has not disclosed everything to the Court. What can I do?

You must raise your concerns with the Court with sound reasoning for thinking that your partner has not disclosed the details of all of their assets. If the Court believes you, then the other party may be subject to a Court order on the basis that it believes that a specified amount of money or assets are available, despite what the party has disclosed. The Court can also order that assets be “frozen” until the proceedings have ended.

It is worth noting that the Court would require a high level of proof to put in place any of these legal actions.

A doubtful partner may be tempted to adopt self-help methods in such instances, but these techniques are generally illegal and the person could be subject to civil and criminal penalties as a result of such actions.

What happens if my partner hides assets and the Court finds out?

If this happens, the Court will always look to ensure that these assets are included in the financial settlement between the divorcing parties. The Court also has the power to penalise the party that has tried to hide its assets, such penalties include making the party pay for the other side’s legal costs or ruling more favourably on the side of the other party.

If the Court finds out at a later date that a person has not disclosed all of their assets, they can reopen the financial case and make amends to the original Financial Order.