Hidden assets

What are the signs that assets may be hidden? 

There is rarely a single clear indicator, but common warning signs include: 

• unexplained transfers to family members, friends or new partners; 
• a sudden drop in business profits or income around the time of separation; 
• a lifestyle that does not match the income or assets disclosed; 
• accounts, investments or properties abroad that have not been mentioned; 
• large cash withdrawals or new holdings in cryptocurrency; and 
• reluctance to provide documents or delays in completing disclosure. 

How can hidden assets be uncovered? 

The starting point is careful scrutiny of the other spouse's Form E and supporting documents, particularly bank statements, which often reveal unexplained payments or accounts. Your solicitor can then raise targeted questions through a questionnaire, which the court can order to be answered. Where information is still missing, the court can order documents to be produced by third parties, such as banks, accountants or employers. In more complex cases, a forensic accountant can be instructed to trace funds or analyse business accounts for signs of manipulation, such as deferred income or inflated expenses. 

Can the court stop my spouse moving assets? 

Yes. Under section 37 of the Matrimonial Causes Act 1973, the court can grant a freezing injunction preventing a spouse from dealing with assets where it is satisfied they intend to defeat a financial claim. It can also set aside transactions that have already happened, such as a transfer to a relative, unless the recipient paid full value in good faith. If the transaction took place less than three years before the application, the court will presume it was made with the intention of defeating the claim, unless the spouse can show otherwise. Applications can be made urgently, and in some cases without notice to the other spouse. 

If you're concerned your spouse may be hiding or moving assets, click below to speak to one of our family solicitors in confidence. 

What happens if the court finds assets have been hidden? 

The court will not allow a spouse to benefit from concealment. Where it finds that a spouse has not given full disclosure, it can draw adverse inferences, meaning it may conclude that they have more resources than they have admitted and make its order on that basis. It can also make costs orders against them, and in serious cases, giving false information in a sworn financial statement can amount to contempt of court. 

What if hidden assets come to light after the settlement? 

A settlement is only as reliable as the disclosure it is based on. In 2015, in the joint cases of Sharland v Sharland and Gohil v Gohil, the Supreme Court confirmed that where a financial order was obtained through fraudulent non-disclosure, it will usually be set aside, unless the court is satisfied the outcome would have been the same. If you discover after your settlement that assets were concealed, take advice promptly, as delay can affect your position.