Family Solicitors

Divorce proceedings are often emotionally and financially taxing, especially when one spouse suspects the other of concealing assets. Ensuring full and frank disclosure is therefore not only essential but paramount. This principle requires all parties involved in a legal dispute to provide complete and accurate information about their financial circumstances. Full and frank disclosure is critical for assessing and dividing assets, determining maintenance payments, and reaching a fair settlement, particularly in high-net-worth divorce cases in England.

Misleading the court or withholding relevant information undermines this process, resulting in an inequitable division of marital property and leaving one party unfairly disadvantaged. It is also considered contempt of court and may result in significant penalties. As emphasised in AB v CD, Robert J stated: "It is not for a litigant to judge the ambit of the duty to disclose or the consequences of disclosure; any information which is relevant to the outcome must be disclosed" (para [165]).

If you suspect your spouse of hiding assets during your divorce, it is vital to approach the situation with diligence and legal expertise to protect your interests.

Collating Financial Records

One of the first steps in addressing hidden assets is compiling all available evidence of financial records. Documents such as bank statements, tax returns, credit card bills, and investment account summaries form the foundation of any inquiry into financial irregularities. Discrepancies within these documents, such as unexplained withdrawals, unusual transactions, or significant changes in account balances, may indicate concealed wealth. Comprehensive and well-organised financial records are invaluable in identifying irregularities and providing critical evidence for legal proceedings.

Consulting a Solicitor

Consulting an experienced solicitor is critical in cases involving hidden assets. Duncan Lewis High Net Worth Divorce Solicitors offers clients going through High Net Worth Divorce a highly professional and objective service and will appoint experts to give specialist advice on financial planning for High Net Worth Divorces, including:

Forensic Accountants

Forensic accountants are useful for locating hidden assets and additional income. Whether someone has an income producing stock portfolio, or makes additional income, a forensic accountant can be beneficial in determining the situation. Any hidden assets, or additional income is then included when dividing assets and determining spousal maintenance where appropriate.

Industry Experts who can help with the valuation of property and businesses

Property experts can offer valuable advice about the value of property and businesses. This includes the family home and properties situated globally. Additionally, they can determine the value of income producing rental property where one of the parties wishes to retain the rental property as part of the divorce settlement. Forensic Accountants can also be used to value business assets if there are problems in attaining an accurate valuation due to the business records.

Tax professionals

As specialists in the field of High Net Worth Divorce, we have the necessary information and knowledge to make sure that major issues are considered alongside divorce, including:

• Tax considerations such as Capital Gains Tax (CGT) upon the transfer of assets after the permanent year of separation;
• The remit of company valuations and where appropriate discounts are to be applied for factors such as illiquidity, minority shareholdings and risk;
• Enforcing orders overseas and whether foreign lawyers will need to be appointed;
• Capitalisation of maintenance and whether Duxbury applies;

Consequences of Asset Concealment

The deliberate concealment of assets during a divorce carries significant consequences. Courts take financial dishonesty seriously, and a spouse caught hiding assets may face severe penalties. These can include the reallocation of a larger share of the marital estate to the disadvantaged spouse, payment of legal fees for the aggrieved party, or even criminal sanctions in extreme cases. Such penalties serve as a deterrent and reinforce the importance of financial transparency throughout the divorce process.

The suspicion of hidden assets during a divorce can introduce uncertainty and complexity, but proactive measures and professional guidance can help safeguard your financial interests. By gathering evidence, consulting a solicitor, and leveraging financial and forensic expertise, you can ensure that all marital property is identified, accurately valued, and fairly divided.

Duncan Lewis Family Law

At Duncan Lewis, our family law solicitors are well-equipped to handle high-net-worth divorce cases involving hidden assets. We provide a comprehensive, objective service, appointing experts as needed to address financial complexities and ensure equitable outcomes.

If you suspect that hidden assets may affect your divorce, contact our team via telephone at 033 3772 0409

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Our High Net worth Divorce Solicitors are committed to uncovering the truth and securing a fair settlement, protecting your rights every step of the way.

About the Author

Julie McNamara is a Director in the Family department at Duncan Lewis Solicitors, based in our Birmingham office. She is experienced in divorce and civil partnership dissolution, as well as financial disputes arising from divorce or dissolution, including high net worth financial and property matters.

If you require guidance or support in navigating the complexities of separation and divorce, contact Julie McNamara via email at JulieMc@duncanlewis.com or by telephone on 020 7275 2670