Warning Signs and What You Can Do About Hidden Assets in Divorce

If you are going through a divorce, it is common to be worried about money  especially if you have never been in charge of the finances or you think your spouse may not be entirely honest. In England and Wales, each party should provide full and frank financial disclosure. Conversely, hiding assets from the court can significantly alter the equity of any settlement.

So how can we differentiate real red flags and how to go about it?

Red flags for hidden assets

A single sign is not evidence, but trends are important. Common red flags include:

Changes in ad hoc income (e.g. bonuses go away, or overtime goes down)

Strange transfers or ATM withdrawals

Recent debt, or loans that you did not read about

A great business that has stopped performing on paper.

Lose paperwork (Statements “lost”, post redirected, not having online access to the bank)

Strange activity nearing divorce (shopping spree, liquidating assets to close family members)

Assets that are in the name of another (a car, savings or securities owned by a relative)

What Can You Do Next (next steps)

If you are alarmed at this, concentrate on calm and informed steps to mitigate the situation;

Scrape what is legally accessible

Please keep copies of your bank statements, mortgage statements and payslips, P60s or tax returns for the past three years as well any pension documents if you have them.

Write down what you know

If you want disclosure, ask for it in the way that is supposed to be done.

Your solicitor will take you through the proper disclosure process together with what documentation needs to be disclosed. For Family Law Solicitors Gloucester, visit //deeandgriffin.co.uk/personal-legal-services/family-law-solicitors/gloucester/

Consider specialist support

A forensic accountant can be helpful in certain situations as well, especially if there is a business, investments or the numbers just do not add up.

If assets are found later

Should any hidden assets surface after an agreement has been reached, the court is likely to not view this favourably. Possible consequences can be revisiting the settlement, and in certain cases he/she may have costs implications against them for a failure to disclose.

The takeaway

While perhaps alarming, there is no need to automatically jump into the worst-case scenario but also do not dismiss your inner voice. Legal advice from the outset is crucial to understand what disclosure you are entitled to and how best to protect your position.

About Author