Posted 21 Oct, 2024

Dividing assets in a divorce requires full financial disclosure from both parties. However, in some cases, one spouse may attempt to hide assets to avoid a fair settlement. Identifying and handling hidden assets is crucial to ensuring a just financial outcome. Here’s what you need to know if you suspect your spouse is concealing assets.

Signs That Assets May Be Hidden

Some common red flags that may indicate hidden assets include:

  • Unexplained Financial Transactions – Large transfers, cash withdrawals, or sudden changes in financial behaviour.
  • Undisclosed Bank Accounts – Secret accounts opened in the spouse’s name or under a business entity.
  • Undervaluing Property or Businesses – Claiming that assets, such as property or a business, are worth less than they truly are.
  • Unusual Debt Claims – Fabricating loans or debts to reduce the value of declared assets.
  • Transferring Assets to Friends or Family – Moving money or property to others temporarily to avoid disclosure.

If any of these signs appear, it’s important to act quickly and seek professional advice.

Steps to Identify Hidden Assets

Financial Disclosure Request

During divorce proceedings, both parties are required to provide full disclosure of their financial situation. This includes:

✔ Bank statements, tax returns, and credit card records.
✔ Pension and investment accounts.
✔ Business financial records, if applicable.

If a spouse refuses to provide full disclosure, further investigation may be necessary.

Investigating Financial Discrepancies

If you suspect assets are being hidden, a forensic accountant or financial investigator can help track transactions and uncover discrepancies. Common tactics include:

✔ Analysing tax returns for undisclosed income sources.
✔ Examining business financials for hidden revenue streams.
✔ Reviewing loan applications where higher asset values may have been declared.

Court Orders and Legal Intervention

If financial disclosure remains incomplete or suspicious, legal steps can be taken to ensure transparency:

✔ Form E Disclosure: This legal document requires both parties to list all assets and financial interests.
✔ Search and Freezing Orders: If there is evidence of asset concealment, courts can issue freezing orders to prevent further transfers.
✔ Third-Party Subpoenas: Banks, employers, or business partners may be required to provide financial records.

Consequences of Hiding Assets

The courts take asset concealment seriously. If a spouse is found to have deliberately hidden assets, the court may:

✔ Impose financial penalties or award a greater share of assets to the other spouse.
✔ Order legal costs to be paid by the non-compliant party.
✔ Reopen financial settlements if undisclosed assets are discovered later.

Why Legal Advice is Essential

If you suspect hidden assets in your divorce, seeking legal advice is crucial. A solicitor can:

✔ Guide you through financial disclosure requirements.
✔ Assist in obtaining forensic financial analysis.
✔ Represent your interests in court if necessary.

At Endeavour Law, we specialise in uncovering hidden assets and ensuring fair financial settlements. Our team can help you navigate complex financial disputes and protect your rights during divorce proceedings.

Uncovering hidden assets is vital to achieving a fair divorce settlement. By taking proactive steps and seeking expert legal guidance, you can ensure transparency and financial security for your future.