What to Do If You Think Your Spouse Is Hiding Assets in Divorce

A financial settlement is often one of the most complex aspects of a divorce and ensuring you receive what you’re entitled to is key to securing your financial future. In England and Wales, both parties must provide full and frank disclosure of assets, including income, property, investments, pensions, cryptocurrency, bank accounts and savings. This financial disclosure is usually presented in a document called Form E.

If you suspect your spouse is hiding wealth, it can add additional stress and complexity to the process at an already challenging time. Beyond the legal ramifications, failing to disclose assets can cause delays, impact negotiations, increase costs and lead to unfair settlements.

What are the signs that your spouse might be hiding assets?

Sometimes, spouses might hide or misrepresent the value of assets because they believe it will lead to a more favourable settlement, reduce child maintenance obligations or protect wealth they feel their partner is not entitled to a share in.

There are several signs that your spouse could be concealing assets, including:

• Delaying disclosure: one of the earliest signs is a reluctance to engage in the disclosure process or delays in completing and exchanging Form E, implying they may be trying to buy time
• Unexplained bank transactions: large withdrawals or big transfers to other accounts without a valid explanation can suggest that your spouse is trying to hide money
• Big purchases or lifestyle changes: out-of-character expensive purchases or lavish spending can be an indicator that someone is attempting to conceal wealth in other forms
• A sudden interest in cryptocurrency: digital assets are difficult to trace and value, making them a popular investment choice for those seeking to conceal wealth
• Increased secrecy: changing passwords, restricting access to information and being secretive when asked about finances are other red flags that your spouse could be trying to influence the settlement
• New bank accounts or income streams: opening a new bank account without your knowledge or a change in income reporting, for those who are business owners or self-employed, can also suggest an attempt to hide funds or reduce value
• Property transfer: transferring property into the names of family members may be a tactic used to hide assets or reduce net worth

What steps should you take if you suspect hidden assets?

If you suspect that your spouse is concealing wealth, you should inform your family lawyer at the earliest possible opportunity. There are steps they can take to prevent further action.

Section 37 of the Matrimonial Causes Act 1973 provides the court with significant powers to safeguard people against the sale, concealment or transfer of matrimonial assets.

Freezing injunction

A freezing order can be used to prevent your spouse from disposing of or moving assets if you can prove their intention to deliberately deplete them. It’s important to act quickly in this instance to ensure your solicitor can secure the injunction as soon as possible.

Third-party disclosure order

Family lawyers can also apply for a third-party disclosure order to enable them to obtain documents from organisations such as banks, employers, accountants or HMRC if your spouse is not willing to supply this information.

Home Rights Notice

If you are concerned that the family home, if owned by your spouse solely, may be sold or transferred, a Home Rights Notice can be submitted to the Land Registry to protect your right to live in the home and prevent the sale or transfer of the property until financial matters are settled. The Land Registry can also place other types of restrictions on properties that are owned by one spouse even if they are not being used as the family home.

Setting aside transactions

The family court also has the power to unwind transactions that have already taken place if there is evidence that these were made to conceal or misinterpret wealth.

Forensic accountants

An alternative route to the family court would be seeking advice from a forensic accountant who can analyse statements and flag discrepancies and inaccuracies, help trace offshore accounts and advise on the value of assets which may have been misrepresented.

What you shouldn’t do

If you believe that wealth is being concealed or undervalued, it’s important not to take matters into your own hands. For example, trying to gain access to devices or accounts or opening mail not addressed to you, as this is against the law.

What are the consequences of concealing wealth?

There are significant repercussions for those who hide or dispose of assets during divorce proceedings. In some instances, the court may penalise this behaviour by awarding a more favourable settlement to the other spouse or ‘add back’ the value of any assets which have been disposed of to ensure a fair split. There may also be financial penalties for the spouse who did not abide by their legal duty to provide full disclosure or, in some cases, contempt of court charges or criminal prosecution.

How Maguire Family Law can help

Financial settlements can be complex at the best of times, but when you suspect concealed assets are involved, it can make matters more time-sensitive and stressful. At Maguire Family Law, we understand the need to act quickly in these circumstances and recognise the importance of securing a fair financial settlement that accurately takes into account all of your combined wealth.

If you are navigating a separation and suspect your spouse is hiding assets, get in touch with our expert team to find out how we can help you ensure your financial security.