How Courts Use Financial Forensics in Divorce

The most contentious aspect of divorce is usually the division of marital assets. In some cases, the procedure can be relatively straightforward. However, for couples with complex financial portfolios, the process can be very intricate. 

Often in relationships, there is a financially stronger partner, with perhaps a higher income and who manages the finances of the family. While this set-up might work well during the marriage, it can become a problem when the marriage breaks down. At this point, the spouse with the higher income or more assets may not want to include certain things into the matrimonial pot for division, such as property or businesses. This can, as a result, deprive the other spouse of their fair share. 

What Is Financial Forensics in Divorce?

Financial forensics use a variety of tools and techniques to examine financial records and provide an up-to-date picture of the financial situation of the parties involved. They utilise forensic accounting procedures to thoroughly investigate the finances of an individual or business. For those who are embroiled in a financial dispute during a divorce and believe that further investigation into the finances of your spouse will ensure greater transparency, financial forensics can be used to help discover and value assets, as well as to trace hidden assets. 

Legal Context:
Under UK law, both parties are required to disclose all assets, income, and liabilities via Form E. Financial forensics helps verify this disclosure and uncover discrepancies.

Why Is Financial Forensics Important?

In complex divorces, one spouse may:

• Conceal assets in offshore accounts or trusts
• Undervalue business interests
• Transfer property to third parties
• Misrepresent income or liabilities

Financial forensics ensures transparency and fairness by:

• Tracing hidden assets
• Valuing complex holdings
• Identifying financial misconduct
• Supporting legal arguments with expert evidence

When Should You Use Financial Forensics?

Consider forensic support if:

• You suspect your spouse is hiding assets
• You’re dealing with international or corporate holdings
• There’s a history of financial control or secrecy
• You need expert valuation of a business or trust

Tip:
Early forensic involvement can strengthen your case and prevent asset dissipation.

Vardags’ In-House Financial Forensics Team

We are the only high net worth family law firm with an in-house Financial Forensics department. Our team specialises in identifying, tracing, valuing, and forensically reviewing assets, including businesses, property, and investments. 

If you are a high-net-worth individual going through or considering a divorce, it is crucial to have an accurate valuation of all your spouse’s assets. Whether these assets are held in complex international trusts, hidden within investment portfolios, or concealed through intricate share structures, they must be identified and considered for a fair settlement. 

This integrated approach ensures speed, accuracy, and strategic advantage.

Need Expert Help?

If you suspect financial non-disclosure or need help valuing complex assets, our elite team of divorce lawyers and forensic experts can help. We offer a free initial consultation to qualifying individuals.

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