The practicalities and the law
‘I need a financial settlement in divorce. I am having trouble with agreeing everything because I am suspicious that my Husband is concealing assets. He’s always been secretive. How can I prove my suspicions and get him to disclose them?
This is an important question and one that occupies the minds of all solicitors representing clients in financial relief cases such as yours.
It was considered most recently by the courts in the much-publicised case that you may have seen in the media, involving (I mean) a very rich couple indeed.
The legal practicalities required
Having solid evidence is essential. ‘He’s always been slippery’ isn’t enough.
Financial disclosure
Understand from the outset that you are each obliged to disclose your own financial circumstances as to all property that you hold together or separately, so that either a fair financial settlement can be reached between you or in the absence of agreement that a Court can hear the evidence and order how the assets (capital, income, pensions) will be divided.
Frank (honest) disclosure
The difficulty is determining the honesty of such disclosure. If you are suspicious that your Husband is concealing assets from you so that you cannot claim against them, then it is for you to prove (on the balance of probabilities) that these assets exist. That may be a property, investments, or undisclosed source of income, perhaps.
You must persuade a court that your Husband is concealing assets. You then must persuade a court why it is relevant that these assets are frustrating your legitimate needs flowing from the breakdown of your marriage or, beyond need, your fair share of remaining assets.
Paper trail
There are numerous examples of attempts to ‘trace’ these missing assets. Would there be any paper trail leading to the asset that you identify as missing? Any deeds accessible in the public domain? Receipts? Any existing financial connections of his who can be called as a witness? Any listed or previous directorships? Any offshore assets that you believe may be held and why do you think this may be the case?
The legal principles applied
A court, faced with matters of non-disclosure of assets, has the power to make an inference (a conclusion, based on evidence and reasoning), upon the nature and extent of your Husband’s failure to disclose an asset. The court can then include this within the overall asset schedule of the marriage, so that a share for you can be considered.
The court also has the power to order what is called a ‘third party order’, if we can establish the necessary accounts that we need to have checked and disclosed by, for example, the banks concerned.
Court powers
This court power is tempered by the requirement to examining the evidence supplied critically and determining facts from this evidence. They then must be considered as relevant to your case. In other words, a finding cannot be made speculatively, it can’t be made disproportionately, and it can’t be made unreasonably.
Conclusion
The best thing to do is to come and see us with your concerns, because it is our job to determine and apply current legal principles like these (which, as you can see, can be complex), to the individual circumstances of your case and look at the cost of pursuing this and the likelihood or otherwise of any benefit to be gained by it.
If you suspect hidden assets in your divorce settlement, it’s crucial to act quickly and gather the necessary evidence. Our experienced legal team can help you navigate financial disclosure, court procedures, and asset tracing to ensure a fair outcome. We offer a free 30-minute consultation to discuss your case and explore the best legal options for you. Contact us today for expert guidance on uncovering hidden assets in divorce settlements and securing your financial future.