Going through a divorce is a stressful time for all parties involved. However, this can be heightened when there are concerns that your partner could be hiding assets during the divorce process.
When going through a divorce, both parties are required to provide full disclosure of all assets and financial interests. They do this through bank statements and by listing all properties and investments that they have. This is needed to ensure a fair financial settlement during the divorce process.
If you suspect your partner is hiding assets, it is crucial to flag this early; in this blog, we’re breaking down everything you need to know about hidden assets in divorce.
The need for financial disclosure
Financial disclosure is needed in all divorce proceedings as it allows both parties to understand the other’s financial situation and leads to a fair settlement. This is done through full disclosure of all assets and financial interests and must be supported by documents such as bank statements.
Failing to disclose any financial information correctly will lead to delays, higher legal costs, and unfair outcomes. As the court relies on accurate and honest disclosures to make a fair decision, it is important that this is correct.
It is advised to seek legal advice early on in the process to ensure everything is disclosed and correctly accounted for to make the financial settlement fair and reasonable. Failure to do so could lead to future disputes.
Hidden assets in a divorce
When divorcing, you and your ex must agree on dividing any money, properties, investments, and even potentially inherited assets. However, some assets can be hidden in a divorce. Examples of assets that can be hidden include gold, savings accounts, digital assets, or properties.
Common tactics to hide assets include:
- Fake invoices
- Transferring money
- Undervaluing assets.
Common assets people look to hide are pensions, inheritance money, and bank accounts. The court does not take this lightly and views it as a form of deception, as it prevents a fair settlement from being reached.
How do I know if my spouse is hiding money before or during a divorce?
There are some signs you can look out for if you do suspect your spouse is hiding money before or during the divorce. This can include suspicious cash withdrawals, unexplained transfers, or a reluctance to provide financial documents.
Form E.
The first step to take if you suspect any of the above is to look at the financial disclosure ‘Form E.’ This document asks you and your ex to give as much information as possible about your bank accounts, savings, wages, mortgages, etc. The document is 28 pages long and needs to be filled in to ensure full financial disclosure.
When looking at this document and experienced Family Law expert will be able to spot if something doesn’t add up in regard to hidden assets. They could also use land registry searches and apply for court orders to uncover any undisclosed information.
Other things to look out for include your ex stopping receiving mail, which indicates documents are being sent to a different address; passwords to accounts are changed randomly; property is transferred into the names of family members, or your ex changes their mind about divorce until their financial affairs are in order.
What should I do if my ex is hiding assets before our divorce?
If you do suspect that your partner is hiding assets, it is crucial to tell your solicitor straight away. You should not attempt to prove this yourself by opening your ex’s mail, for example, as this is an illegal action.
Once your solicitor is aware, they will do several things to try and find the hidden assets. This can include applying for a third-party disclosure order, if needed, which allows the solicitor to obtain documents from HMRC and the bank.
They could also hire a forensic accountant to analyse all financial statements and look for any inconsistencies in them. They can also apply for a freezing order, which will stop your ex from dealing with assets, so they are protected in the divorce.
If properties are involved, a solicitor will be able to apply for a Homes Rights Notice to be placed on the home if the property is held in their sole name and apply for a Unilateral Notice or a Restriction to be placed on any properties held in your ex’s name.
What are the penalties for hiding assets in a divorce?
If your partner fails to disclose financial information in a divorce and has hidden assets, a few things could happen to them.
If the divorce is ongoing, the court will order that all finances and assets are now disclosed fully and can order that your ex pays your legal costs. The court could also make a financial order on the basis that a certain amount of money is available, based on what your ex has revealed.
If the divorce has already been proceeded, the court could reopen it and void the existing financial settlement. They will then renegotiate a new financial settlement from scratch through the courts or privately.
How Davisons Law can help
We have a team of dedicated family law experts who can discuss your divorce with you and advise you on Form E in language that you can understand.
We can also complete Form E on your behalf, ensuring your case is best represented in court. Get in touch today on 0808 3036 987 and a member of our team will be in touch.
