Financial Non-Disclosure in Divorce =================================== What Is Financial Non-Disclosure in Divorce? -------------------------------------------- Financial non-disclosure occurs when one party in divorce proceedings fails to fully and honestly disclose their financial circumstances. This includes hiding assets, understating income, or omitting liabilities. In the UK, both parties are legally required to provide [full and frank disclosure ](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/what-is-financial-disclosure-in-divorce)of their finances during financial remedy proceedings. > **Legal Requirement:** > Under[ Form E](https://vardags.com/law-guide/financial-proceedings/form-e), each party must disclose all assets, income, liabilities, and financial interests. Failure to do so can result in serious legal consequences. Why Is Disclosure So Important? ------------------------------- The court can only make a fair financial order if it has a complete picture of both parties' finances. Non-disclosure undermines the integrity of the process and can lead to: - Unfair settlements - Reopened cases - Adverse cost orders - Criminal sanctions in extreme cases Common Forms of Non-Disclosure ------------------------------ - Hiding assets in offshore accounts or trusts - Transferring property to third parties - Undervaluing businesses or investments - Failing to disclose bonuses, pensions, or crypto holdings - Misrepresenting debts or liabilities Key Case Law: Sharland, Gohil & Moher ----------------------------------------- - [**Sharland v Sharland \[2015\] UKSC 60**:](https://vardags.com/law-guide/important-divorce-cases/gohil-v-gohil-sharland-v-sharland) The husband failed to disclose plans for a company flotation. The Supreme Court set aside the original order. - [**Gohil v Gohil \[2015\] UKSC 61**:](https://vardags.com/law-guide/important-divorce-cases/gohil-v-gohil-sharland-v-sharland) The wife successfully reopened her case after discovering her husband had hidden assets. - [**Moher v Moher \[2019\] EWCA Civ 1482**:](https://www.bailii.org/ew/cases/EWCA/Civ/2019/1482.html) The Court of Appeal upheld a significant award despite the husband's refusal to disclose his wealth, stating the court would not become a "cheat's charter." How Courts Respond to Non-Disclosure ------------------------------------ If non-disclosure is proven, [the court may](https://vardags.com/law-guide/financial-proceedings/what-are-the-penalties-for-non-disclosure-in-divorce): - **Infer wealth** based on lifestyle and circumstantial evidence - the courts are likely to draw "adverse inferences" about the non-disclosing party - **Award a greater share** to the honest party - **Impose costs or sanctions** on the non-disclosing party If your divorce has finalised, but you believe that your partner hid assets, it may be possible to **reopen your case**. Following the decisions in *[Sharland v Sharland and Gohil v Gohil](https://vardags.com/law-guide/important-divorce-cases/gohil-v-gohil-sharland-v-sharland)*, the court can now reopen any case if there has been deliberate and fraudulent non-disclosure. This means that where assets have been deliberately hidden, the court can reconsider the case and review how the assets were divided - and it is important to note that there are no time limits on claims being re-opened. What happens when the case is reopened very much depends on the specific facts. If you believe that your settlement was tainted by non-disclosure, it is important to act quickly in trying to issue your [appeal](https://vardags.com/law-guide/financial-proceedings/appealing-an-order-non-disclosure). Generally, where the non-disclosure is material, then the settlement order may be [set aside](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/setting-aside-a-financial-order-due-to-non-disclosure) and costs may be recovered by the aggrieved party. In addition to this, failure to make proper disclosure can amount to contempt of court. If their contempt is deliberate, then they can be **fined** or even **sent to prison**. ### **Need Expert Help?** Indeed, there have been high profile divorce cases in which prison sentences have been handed down for one party's failure to provide disclosure. Most famously, in the divorce of [Scot and Michelle Young,](https://vardags.com/law-guide/important-divorce-cases/young-v-young)**Vardags took over the final hearing and acted for Michelle Young.** In this case, Scot Young - the billionaire entrepreneur who refused to provide disclosure or comply with the court - was sentenced to 6 months imprisonment. Vardags' team of top divorce lawyers delivers a bespoke legal service to HNW and UHNW individuals, their families, and businesses. We are the **only** HNW family law firm with an [in-house Financial Forensics department](https://vardags.com/financial-forensics). 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. **If you suspect your spouse is hiding assets or has failed to disclose their finances, our team of elite divorce lawyers and forensic experts can help. We offer a free initial consultation to qualifying individuals.** [BOOK FREE CONSULTATION](https://vardags.com/contact "BOOK FREE CONSULTATION") About Us -------- Ayesha VardagFounder & President "A DIVORCE LAWYER WIDELY REGARDED AS ONE OF THE WORLD'S BEST" The Metro Vardags offer a unique approach to the law, specially tailored to the needs of HNW individuals. We offer City-quality representation for your divorce and family law needs. Our lawyers come from the very best universities and receive the very best training - they are determined, diligent, and dedicated to getting the best outcome... [read more](https://vardags.com/about-us) [BOOK FREE CONSULTATION](https://vardags.com/contact) Related Reads ------------- ### Four ways non-disclosers hide their assets Non-disclosure in divorce cases has recently hit the headlines again with reports of asset hiding... [READ MORE](https://vardags.com/family-law/four-ways-non-disclosers-hide-their-assets "Four ways non-disclosers hide their assets") ### Three ways to overcome non-disclosure I have lost count of the number of times that a client has said to me "my spouse is very clever,... [READ MORE](https://vardags.com/family-law/three-ways-to-overcome-non-disclosure "Three ways to overcome non-disclosure") Related Guides -------------- [Asset Tracing in Divorce](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/asset-tracing-in-divorce "Asset Tracing in Divorce") [Discovering Financial Assets: Goddard-Watts v Goddard-Watts 2023 EWCA Civ 115](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/discovering-financial-assets-goddard-watts-v-goddard-watts "Discovering Financial Assets: Goddard-Watts v Goddard-Watts 2023 EWCA Civ 115") [Gohil v Gohil & Sharland v Sharland](https://vardags.com/law-guide/important-divorce-cases/gohil-v-gohil-sharland-v-sharland "Gohil v Gohil & Sharland v Sharland") [How Courts Use Financial Forensics in Divorce](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/using-financial-forensics-guide-to-disclosure "How Courts Use Financial Forensics in Divorce") [Kingdon v Kingdon: Non-Disclosure in Divorce](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/kingdon-v-kingdon-non-disclosure-in-divorce "Kingdon v Kingdon: Non-Disclosure in Divorce") [What Is Financial Disclosure in Divorce?](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/what-is-financial-disclosure-in-divorce "What Is Financial Disclosure in Divorce?") [Young v Young](https://vardags.com/law-guide/important-divorce-cases/young-v-young "Young v Young") [How do you uncover hidden assets during divorce proceedings?](https://vardags.com/faq/divorce/how-to-uncover-hidden-assets-during-divorce-proceedings "How do you uncover hidden assets during divorce proceedings?") [My spouse is hiding assets in offshore bank accounts and companies, what can I do?](https://vardags.com/faq/divorce/spouse-hiding-assets-offshore "My spouse is hiding assets in offshore bank accounts and companies, what can I do?") The information on this website is intended as a guide and does not constitute legal advice. Vardags do not accept liability for any errors in the information on this website, nor any losses stemming from reliance upon the statements made herein. All articles and pages aim to reflect the legal position at time they were published, and may have been rendered obsolete by subsequent developments in the law. Should you require specialist advice, tailored to your situation, please see how Vardags can help you.