What to do if you suspect your spouse is concealing wealth in divorce

Hidden Assets in Divorce: What to Do if You Suspect Your Spouse Is Concealing Wealth

Reaching a financial settlement is often one of the most difficult parts of divorce. While most couples provide full financial disclosure, some individuals may try to conceal assets or understate their wealth, making it harder to achieve a fair outcome.

If you believe your spouse is concealing money, property or other valuable assets, it is important to seek legal advice as early as possible. At Jordans Solicitors, we can explain your legal options and help ensure all relevant financial matters are properly investigated.

Understanding Disclosure Obligations During Divorce

In England and Wales, both parties are legally required to provide full and honest details of their financial circumstances. This includes information about their income, savings, pensions, investments, property, business interests, debts and any other assets.

This is then supported by documented evidence such as bank statements, tax returns, mortgage details, pension valuations and business accounts where applicable. 

Both parties are required to sign a Statement of Truth. The duty to be honest continues throughout the proceedings, meaning any significant changes must also be disclosed.

Could Your Spouse Be Concealing Assets?

Although there is not always clear proof, certain warning signs may suggest financial information is being withheld, including:

• A lavish lifestyle which does not match the declared income.
• Sudden reductions in income.
• Unexplained withdrawals or transfers.
• Unusual debts or liabilities.
• Missing documents or incomplete disclosure.
• Reluctance to answer financial questions.
• Payments or loans to friends or family.
• Unexplained business losses or unusually low profits.

Commonly Hidden Assets 

• Secret bank accounts
• Complex business ownership structures 
• Overseas investments 
• Undisclosed property 
• Assets or trust funds held in another person’s name
• Luxury items, such as watches, bags, artwork 
• Cryptocurrency

In some cases, assets are simply undervalued or temporarily transferred. It is often important to review financial activity throughout the marriage, not just after separation.

How Hidden Assets Can Be Investigated

Your solicitor will carefully review the financial evidence for inconsistencies, comparing bank statements, tax returns, company accounts and spending patterns. Where information appears incomplete, further documents or explanations can be requested as part of the legal process.

What Can the Court do?

If a spouse fails to provide proper disclosure, the court can:

• Order further specific disclosure in relation to their finances. In some cases, the non-disclosing spouse can be bypassed, and information can be obtained directly from banks or other third parties. 
• Order the non-disclosing spouse to pay or contribute towards the other spouse’s legal costs. 
• Draw adverse inferences where appropriate. This means the court may conclude that the missing information would have been unfavourable to the non-disclosing spouse, which could result in a more favourable financial award for the other spouse.
• Set aside transfers of assets made to third parties where the court finds they were intended to conceal assets during the proceedings.

When Experts Are Needed

In higher net worth or more complex cases, forensic accountants may be instructed to investigate business finances, trace transactions and identify hidden assets. Specialists may also assist in tracing overseas assets or identifying cryptocurrency holdings, particularly where one spouse has managed the family's finances or owns a business.

Avoid Investigating Yourself

If you suspect assets are being hidden, avoid accessing your spouse's personal accounts, as this may have legal consequences. Instead, keep copies of any documents you already have lawful access to and discuss your concerns with your solicitor.

Can a Final Financial Order Still Be Challenged?

Yes. If previously undisclosed assets, including offshore assets, come to light after a financial order has been made, it may be possible to apply to the court to vary or set aside the order if the non-disclosure would have affected the financial settlement.

Why Early Legal Advice Matters

Suspected financial non-disclosure should never be ignored. Early legal advice means a family solicitor can help identify concerns, secure further disclosure where necessary and ensure that all relevant assets are considered before any financial settlement is reached.

If you are concerned that your spouse has not fully disclosed their finances during divorce proceedings, our family law team can advise you on the options available and the steps that may be taken to help protect your financial position and work towards a fair financial settlement.

Jordans Solicitors’ Family Law team – here to support you

At Jordans, we support you through every step of your matter.

If you wish to discuss your financial matters further, please contact our team of experts on 033 0300 1103 and ask to speak to a member of our Family Law team or request a call back here.