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During a divorce, a key aspect is the financial agreement that the two partners reach before the divorce is finalised. It is also one of the most challenging aspects which is why the law in the UK prioritises full disclosure, expected by both parties regarding their financial positions. Attempting to conceal assets does not only result in serious consequences but the UK is becoming much more efficient at finding them.
Hiding assets in a divorce
Reaching financial agreement during a divorce is dependent on the full disclosure of assets. The concealment of assets in divorce increases the likelihood of negotiations breaking down and makes it more likely that the legal process becomes hostile. If matters are taken to court, assets are detailed in a document which includes every single aspect of shared and individual finances including children, properties, income and businesses. This document is known as Form E and is the basis for the solutions reached when a case makes it to court. It could be considered as perjury if there is any attempt to conceal these assets as Form E is an official legal declaration. This could result in severe sanctions for those who are guilty of attempting to do this; despite this, however, some parties persist to attempt to remain with concealed assets as they see the reward as being worth the risk.
If you suspect your spouse is trying to hide assets from you, your first course of action should be to consult a solicitor. A solicitor will take the necessary steps to help reveal the truth and ensure that your divorce process can be completed in a fair and just manner.
Common ways of hiding assets
Concealment of assets is much more common by the party who makes much more money than the other party as the higher earner often has broader access to both finances while the other partner is left uncertain. There are common approaches that are often taken by partners who are attempting to conceal assets such as transferring money or shares to friends and relatives. If they aren’t transferring to friend, they may transfer their money offshore as it is harder to trace and value the assets. Three approaches that also share a similar method of concealment are: setting up trusts, cryptocurrency and high value purchases which takes advantage of the fact that they will be able to regain access to the money once the divorce has been finalised. Another common way of hiding assets is secret bank and savings accounts which allows partners who have an increased financial control to have bank accounts unknown to their spouse in which they bare able to keep a large sum of money that they can access after the divorce.
Consequences of concealing assets
The court regards non-disclosure of assets very seriously and has the ability to penalise the offending partner harshly. With proof being provided that a partner going through a divorce is concealing assets, the court can make powerful order sin order to ensure that a fair outcome is reached. If discovered, penalties can include payment of the other party’s legal costs, reopening the settlement even after it has been closed and contempt of court charges. Under extreme circumstances, it may even result in criminal charges and prison sentences. On top of these punishments, the discovery of non-disclosed assets can result in an offending party receiving a worse financial settlement as the court may deem the act of concealing assets as serious enough to take it into account, in regards to the eventual settlement. Even after a settlement has been reached, if it comes to light that there had been concealed assets throughout the process, the court is able to reopen the settlement and can even lead to a criminal record. The potential penalties for hidden assets can be severe and include financial consequences, a worse financial settlement, contempt of court, reopening of the settlement, criminal penalties and forfeiting rights to concealed assets
Signs that a partner may be hiding assets during a divorce
Financial concealment rarely appears out of the blue which is why behavioural changes that occur during a divorce, regarding finances, can be a clear sign that a partner is hiding assets. These patterns can often be identified, even without access to financial records and may convince an innocent party to seek legal advice. Behavioural patterns that stand out the most among guilty parties include pressure to settle quickly, inconsistencies between declared income and lifestyle, sudden debts to friends or families and disengagement to the legal process such as repeatedly failing to provide requested documentation or submitting incomplete responses to form.
If you require expert legal advice or support with any aspect of your matter, our experienced team of solicitors at Aston Bond are here to help. We are committed to providing clear, practical and tailored legal solutions to help you move forward with confidence. Contact our team today on 01753 486 777 or email info@astonbond.co.uk to discuss how we can assist you.
