Hidden assets

There are a variety of methods to identify hidden assets held by a party. Sometimes these can be as simply as reviewing bank statements that have been provided as part of the disclosure process and noticing transfers to or from an account that has not yet been disclosed. Other times our client will have a working knowledge of the relationship’s finances and know that certain assets haven’t been disclosed.

In some circumstances, it may be necessary to seek the assistance of an expert such as a forensic accountant to review documentation to understand whether there is something hidden. There are also applications to court, such as for a disclosure order, that you can make to obtain further information about hidden assets. Our lawyers will be able to talk to you about concerns you may have and the most proportionate response to dealing with them within your case.

The courts can employ a range of powers when dealing with hidden assets. These include:

• Disclosure order – the court can make a disclosure order to a third party, such as a bank, in order to obtain information about an asset that the party themselves are not disclosing.
• Add back– if a party has hidden an asset, the court can make the decision as if that asset were disclosed.
• Adverse inferences – the court can draw adverse inferences where a party does not provide full and frank disclosure which could lead to a higher settlement to their partner.
• Contempt of court – within court proceedings, parties will sign a statement of truth declaring that they have provided full and frank disclosure. If it turns out that they have not, contempt of court proceedings could be brought against them.
• Set aside – if it is found that a settlement has been reached but that full and frank disclosure was not given, then the order could be set aside completely if the court would have made a different order but for the lack of disclosure.
• Costs order – where a party continually fails to disclose, then the court may consider this litigation misconduct and make a costs order against them in favour of the other party.
• Adjournment – if the court considers that it would be unfair to finalise the claim at this stage due to one party being dishonest about their assets, then they could adjourn the case.
• Lack of privacy – if a party wilfully gives false information to the court, the court may suspend the implied duty of confidentiality in relation to that conduct.

   

You should speak to your lawyer if you believe your ex-partner is hiding assets within settlement negotiations or court proceedings. They will be able to advise you on how best to deal with it. You should not undertake investigations yourself or look through your ex-partner’s personal items for evidence. This is called ‘self-help’ and is looked on poorly by the family courts and in some circumstances, it is a crime.

Once a final financial settlement has been reached, whether directly between you and your partner or through the courts, that would usually be the end of the matter. It will likely contain a clean break clause, preventing you from making any further claims against your partner’s assets.

However, if your partner did not disclose all of their assets when that settlement was reached, you may have grounds to re-open and re-negotiate the settlement. You would need to make an application to set aside the order. You would need to prove to the court that your partner did not give full and frank disclosure and that if they had, a different financial settlement would have been reached. If your application is successful, you could claim the costs associated with your application against your partner so they would need to pay your legal fees. There is also a risk that your partner could be held in contempt of court, which is punishable by committal. 

No, this is legally privileged material. Legal privilege refers to the protection afforded to communications between a lawyer and their client, including any legal advice that may be given. This means that material between you and your lawyer doesn't need to be disclosed in court.