Could your ex be hiding financial information during divorce proceedings?

The process of divorce can be highly stressful. Dividing up childcare, property and finances is both practically challenging and emotionally difficult. This is compounded if you believe your ex-partner is hiding financial information and assets from the process, ultimately leading to an unjust division of the matrimonial pot.

When finances are being settled, each party must complete and exchange a Form E under English and Welsh Law. This represents a full and frank disclosure of each person’s income, assets, liabilities and future financial needs. This must all be supported by documentary evidence including salary, bank, investment and pension statements.

Methods of hiding financial information and assets

Owing to recent money laundering protocols, it is now difficult to hide or dispose of assets without leaving a digital or paper trail. However, it is not impossible.

The main ways in which financial information can be hidden include the following:

• Moving money into an account which is not declared on the Form E.
• Moving money into the accounts of other family members and friends
• Moving money into offshore accounts.
• Hiding money in cryptocurrency or PayPal accounts.
• Creating false invoices/statements to indicate debt and loans.
• Underestimating the value of a business or assets such as jewellery, artwork, cars and antiques.

For any money transferred up to three years before the divorce, there must be proof that it was a legitimate transfer. Without this, a judge can order the amount involved to be included in the matrimonial pot.

What to do if you suspect your ex is hiding financial assets

It is possible to research information held at both Companies House and the Land Registry to see if your ex has additional directorships or owns other property. This is publicly held information that anyone can consult.

Beyond this, we do not advise starting your own investigation into an ex’s finances and assets, as it could lead to civil or criminal proceedings against you.

Instead, appoint an experienced family lawyer who understands the legal process for extracting a full financial disclosure.

How a family lawyer can help

Firstly, when you start the divorce process a family lawyer can initiate financial remedy proceedings, which is the exchange of financial information via Form E.

If you then suspect that your ex is hiding assets, a family lawyer can:

• Apply for court ordered disclosure, making it a criminal offence to hide information.
• Apply for third party court disclosure orders from people such as accountants, colleagues, employers and employees.
• Hire a professional asset tracer and/or a forensic accountant to assist in conducting a full financial investigation.
• Request a freezing order to prevent the risk of any assets being sold or transferred.
• Ensure the costs for these can be sought from the defaulting party.
• If additional assets are exposed after a financial settlement has been made, a family solicitor can have the settlement reopened, and an adjustment made.

If you are struggling with issues arising from separation and divorce, we offer a no obligation initial consultation for a fixed fee of £100 (incl. VAT), for up to one hour. At this meeting, we can advise you on all the issues relating to your personal circumstances, allowing you to make informed decisions moving forward.

To book an appointment please call 01444 472700, email us at info@tisshawssolicitors.co.uk or complete the form below.