Hiding assets during a divorce 

When getting divorced, it is illegal to hide assets including those acquired before the marriage. If it is later discovered that a financial settlement has been negotiated or ordered by the court and one or both parties were hiding assets, then the court could decide a new division of assets is required. 

If you suspect that your former spouse has hidden assets or is concealing their true value, then you should alert your solicitor. 

During a divorce full financial disclosure by both sides is needed so you will be able to see details of any bank accounts, savings, investments, pension pot and business / share valuations. If your spouse will not share information, then you can apply to court for a Freezing Order which prevents them from moving or disposing of assets along with an application for a Financial Remedy Order which also requires them to disclose financial information. 

Common ways that assets are hidden are: 

  • Transferring money, shares or assets to friends or family 
  1. Setting up a trust 
  1. Transferring funds to an international bank account 
  1. Secret savings or investment accounts 
  1. Hidden ownership of assets such as property 
  1. Cryptocurrency  
  1. High value purchases such as watches or jewellery 
  1. Deferring bonuses 
  1. Under declaring business assets 
  1. Keeping large amounts of cash 

Where a former spouse has been trying to hide money before the divorce then the court can also decide on the division of assets, so it is important to keep a note of everything you know of or suspect. 

Any money transfers made before a divorce need to be declared as part of the settlement proceedings. 

If you are seeking to protect finances or assets before marriage, then you can make a post-nuptial agreement. Whilst not currently legally binding, a court will consider a properly prepared pre-nup where both parties have taken independent legal advice and agreed to it in writing. 

A negotiated financial settlement which both parties agree to is always the best outcome in a divorce, for example if one person wants to keep the family home and the other wants to keep their pension pot. Try and reach an agreement with the support of your solicitor so that you don’t have to turn to the court and who may not decide as you would like. 

Sunita Chauhan can be contacted at s.chauhan@gullands.com