How do you uncover hidden assets during divorce proceedings?

Hidden assets 

During the process of divorce, one of the elements is the exchange of information relating to finances, known as disclosure. This is done in order to determine what a fair division of the assets will be. However, there are instances where one or both of the parties conceal or misrepresent deliberately the value of their assets. Should it be the case that certain assets are not included during disclosure, it cannot be divided, even if it’s the case that it is later discovered it is likely already be disposed of. These kinds of assets are known as hidden assets and should either party be discovered to be hiding assets, the court will take serious action against them. 

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The Form E 

Where there has been an application for a financial order in divorce proceedings, each party must go through the process of completing a document called a ‘Form E’. This is a comprehensive document, similar to a questionnaire in which each party sets out full details about their finances. Documents to evidence this are attached along with the form, these include bank statements, evidence of your investments, property valuations and pension statements, along with documentary evidence such as P60s, payslips, tax returns and company accounts.  

What to do if there is a suspicion of hidden assets 

If there is any doubt that either party is hiding any assets or income, and this can be demonstrated, the courts have a wide range of powers in which they can assist to investigate the finances of the party concerned in order to determine the true value of the assets. An example of this can be the court ordering to provide extensive documentation and persistent refusal to comply can result in the defaulter being in contempt of court.  Alternatively, third parties such as bank representatives, new spouses, employers, accountants etc., can be ordered to come to court with relevant information and documentation. 

As an extreme example, the court is within its power to make a ‘search and seize’ order, or for the assets in question to preserved pending the outcome of the financial application. However, as a downside, it’s difficult to obtain these orders, and they can be quite costly too. In such circumstances it would be important to keep the costs of investigating such assets against the benefits of any action involving the court. 

If there is a danger that assets may be dissipated or removed from the jurisdiction, and you have proof sufficient to convince a court, an application can be made for a “freezing” order or where assets have already been disposed of for an “unscrambling” order. Freezing orders can extend to assets held overseas and in exceptional circumstances foreign courts can be requested to assist by making a “mirror order” freezing assets within their jurisdiction in support of the English proceedings. 

An alternative route would also be seeking the help of a forensic accountant. Forensic accountants can aid in the investigation of any accounting discrepancies, financial inaccuracies and both business and personal finances. Having such skills can help when it comes to uncovering hidden income, to investigate any claims of non-disclosure, to help trace offshore assets and advise on the likely value of assets including businesses which may have been artificially deflated.