Assets which have been moved or hidden before divorce

If you suspect your ex-partner is hiding assets during financial proceedings, a skilled family law solicitor can help you navigate the complexities of uncovering hidden wealth.

Challenging Incomplete Financial Disclosures

If your ex-partner's financial disclosure seems incomplete or inaccurate, your solicitor can:

• Review Financial Documents - request and scrutinise bank statements, tax returns, and other financial records to identify discrepancies.

• Request Additional Information - seek specific information, such as business accounts, property valuations, or investment portfolios.

• Consult with Forensic Accountants - engage experts to investigate complex financial transactions and identify potential hidden assets.

• Seek Court Orders - apply for court orders to compel your ex-partner to provide more detailed financial information.

Common Scenarios Where Hidden Assets May Occur

• Self-Employed Individuals - if your ex-partner's income and expenses are not accurately reported.

• Family Businesses - when assets are transferred or hidden within the business structure.

• Offshore Assets - if assets are held in offshore accounts or investments.

• Cryptocurrency Holdings - if your ex-partner has invested in cryptocurrency.

By working closely with an experienced family law solicitor, you can increase your chances of uncovering hidden assets and ensuring a fair financial settlement.

These types of matters often need specialist urgent legal advice and are usually very complex both factually and legally. It is important you take legal advice if you suspect your husband or wife is going to get rid of or has already got rid of assets.

Get evidence - suspicion alone is not enough

While suspicion of hidden assets can be a valid concern during divorce proceedings, mere suspicion is not enough to compel a court to take action. The legal system operates on a principle of evidence-based decision-making.

Engaging in unauthorised snooping, such as hacking into email accounts or accessing financial records without permission, will very often backfire and can have serious legal consequences, including civil liability for breach of privacy and/or criminal liability under the Computer Misuse Act. Unlawfully obtained evidence is also certainly inadmissible which means it will simply be ignored by the court.  

A powerful legal option for uncovering hidden assets is to consider applying for a third-party disclosure order. This legal order compels financial institutions, such as banks, investment firms, or pension providers, to disclose information about an individual's financial holdings.

However, obtaining a third-party disclosure order isn't straightforward. It requires a strong foundation of evidence to convince the court that there are reasonable grounds to suspect that assets are being concealed. Applications are high risk.

Application to prevent a disposal/removal of property 

If the court is satisfied that the other party is about to make any disposition or transfer out of the jurisdiction or otherwise deal with any property, they have the power to make such order as it thinks fit for restraining the other party from doing so.

This is a type of injunction, and it must be emphasised that it is a form of prohibitory injunction. This means that its effect is to prevent somebody from doing something. This type of injunction is not limited to a disposal to a third-party, it can restrain a party from mortgaging or charging land. The Order can only be made against the other party to the proceedings and not against a third-party.

For the Court to make an Order there must be a relevant claim for financial relief e.g. lump sum order, property adjustment order. The Court must be satisfied that a disposal is about to take place. Raising suspicion alone will not suffice. The Applicant must prove the matter on the balance of probabilities. It must also be shown that the disposal is about to be made with the intention of defeating a claim for financial relief.

Applying to set aside a transaction that has already taken place

If the other party has already disposed of the asset, then the Court have the power to set aside the transaction/(s). It must be shown that the disposition was made with the intention to defeat the other party’s claim for financial relief. Applications under this section also carry with it a statutory presumption. If the disposal was made within 3-years of the financial relief application, it will be presumed the transaction was made with the intention to defeat the applicant’s claim for financial relief. (Section 37(5) of the Matrimonial Causes Act 1973).

This a powerful tool because it has the effect of reversing the burden of proof and means the party who has disposed of the property must prove the disposal wasn’t made with intention to defeat your claim.

It is essential you consult with a specialist financial remedy lawyer if you are faced with either of these situations.