Divorce is rarely straightforward. Financial disputes can be among the most stressful aspects of the separation process.
If you suspect your ex-partner is concealing money, property, or other assets, rest assured that others have experienced the same. There are a number of options available to you, and you can be confident that courts will take a very dim view of anyone seen to manipulate the financial disclosure process.
This article puts a spotlight on the consequences for someone who has been found to hide assets in a divorce.
Full financial disclosure a legal requirement
Both parties in a divorce are legally required to provide full and honest financial disclosure. If an ex-spouse is concealing assets deliberately, they are risking serious legal and financial penalties.
In some cases, the court may even draw what are known as adverse inferences – instead of a spouse accepting a lower and potentially false valuation, the court might adopt a higher valuation provided by them from an uncooperative spouse, the court may adopt a higher valuation provided by them. This can mean that the dishonest spouse often ends up worse off.
Consequences for hiding assets
Contempt of court – a serious offence that could result in fines or, in the most severe cases, imprisonment.
Adverse inferences – as we have already touched upon, a judge can assume hidden assets are worth more than they are and divide the remaining assets in the other party’s favour.
Reopening the case – if hidden assets come to light after a final order is made, the court is within its rights to disregard the initial settlement and renegotiate the entire agreement.
Financial penalties – it is common for the court to order the dishonest party to pay the other party’s legal costs related to uncovering the hidden assets.
‘Add back’ orders – if assets have been wasted or transferred elsewhere, the court may treat that value as still available to the spouse who has found to hide the assets.
If you are concerned that your ex-partner is hiding assets, don’t delay seeking early legal advice. Guidance from experts such as Bennett Smith, divorce solicitors in North Wales, can make a significant difference to the outcome of your settlement. Call us today on 01248 671994.
