What to Do If Your Spouse Is Hiding Assets in Divorce
Both parties in divorce financial proceedings are under a duty of full and frank disclosure. A spouse who hides, transfers, or dissipates assets can face serious legal consequences — and you have effective tools to uncover and protect hidden wealth.
Quick Answer
If you suspect your spouse is hiding assets, there are several powerful tools available through the family court. You can apply for a freezing injunction to prevent dissipation, use Form E financial disclosure to compel disclosure under oath, seek third-party disclosure orders against banks and employers, instruct a forensic accountant, and bring the non-disclosure to the court's attention — which can lead to costs penalties and adverse inferences.
Full Explanation
In financial remedy proceedings following divorce (or civil partnership dissolution), both parties owe a duty of full and frank disclosure to the court and to each other. This duty is not merely procedural — it is a fundamental requirement of the financial remedy process. Failure to comply can result in the order being set aside, costs penalties, and referral for contempt of court proceedings.
All parties must complete Form E, a sworn financial statement covering all assets, income, liabilities, pensions, and interests in property worldwide. This form is exchanged simultaneously between the parties and forms the foundation for the First Appointment (FA) and Financial Dispute Resolution (FDR) hearings. Questions can be raised about any entry on Form E and the court can order further disclosure at the FA hearing.
If you suspect your spouse is hiding or dissipating assets before or during proceedings, the main tools available are: (a) a freezing injunction (formerly Mareva injunction) under FPR Practice Direction 20A, which prevents the disposal, transfer, or diminution of assets up to a specified value pending final order; (b) a third-party disclosure order against a bank, accountant, employer, or company requiring them to produce documents relevant to the proceedings (FPR r.21.2); (c) a search order (formerly Anton Piller order) in cases where there is a real risk of destruction of evidence; and (d) questionnaires and requests for further information at the FA stage, which are formulated specifically to target suspected areas of non-disclosure.
Forensic accountants can be invaluable in business-owning divorces where a spouse may be understating business income or inflating liabilities. They can also trace pension transfers, identify unusual capital movements in company accounts, and assess whether a business valuation is realistic. The court has power to direct the joint instruction of a single joint expert.
Where a party is found to have been dishonest in their disclosure, the court will draw adverse inferences against them. In serious cases, the court may re-open a concluded financial order on the grounds of non-disclosure (Sharland v Sharland [2015] UKSC 60; Gohil v Gohil [2015] UKSC 61). The non-disclosing party can also be ordered to pay all the costs of the proceedings.
Legal Basis
- §Matrimonial Causes Act 1973, section 25 (court's duty to consider all circumstances and resources)
- §Family Procedure Rules 2010, Part 9 and PD9A (financial remedy proceedings)
- §Sharland v Sharland [2015] UKSC 60 (fraudulent non-disclosure vitiates consent orders)
- §Gohil v Gohil [2015] UKSC 61 (court's inherent jurisdiction to set aside on non-disclosure)
What To Do
Instruct a Family Law Solicitor Immediately
Non-disclosure cases require specialist family law advice. A solicitor can apply for a freezing injunction on an urgent without-notice basis if there is an immediate risk of asset dissipation or transfer abroad.
Gather Evidence Before Proceedings
Before you or your solicitor send any letters or issue applications, gather what evidence you can legitimately access: bank statements, credit card statements, payslips, tax returns, Companies House filings, Land Registry entries. Do not access your spouse's private accounts without their consent — this could constitute a criminal offence.
Apply for a Freezing Injunction If Assets Are at Risk
If there is a real risk that your spouse will dissipate, transfer, or hide assets pending the final order, apply urgently to the family court for a freezing injunction. The application can be made without notice in urgent cases. You will need to demonstrate the real risk and identify the assets to be frozen.
Use the Form E Process and Questionnaires
On exchange of Form E, scrutinise your spouse's answers carefully with your solicitor. Identify gaps, inconsistencies, or suspicious entries. Draft a questionnaire specifically targeting areas of suspected non-disclosure, attaching documents you hold that contradict their Form E.
Apply for Third-Party Disclosure Orders
If banks, employers, or accountants hold documents that would reveal hidden assets, apply under FPR r.21.2 for a third-party disclosure order. This is particularly useful for bank account records, pension transfer documentation, and business financial records.
Instruct a Forensic Accountant
In business-owning cases, instruct a forensic accountant to review the business accounts, identify any artificial reduction of income or inflation of liabilities, and produce a report for the court. Apply for the court's permission to rely on this report as expert evidence.
Important Deadlines
Important Warnings
Do not access your spouse's email, phone, or computer accounts without their knowledge — intercepting private communications is a criminal offence under the Computer Misuse Act 1990 and the Regulation of Investigatory Powers Act 2000, and evidence obtained this way may be inadmissible.
Acting without legal advice in non-disclosure cases risks jeopardising your position. Courts take a dim view of self-help remedies.
A freezing injunction requires you to give a cross-undertaking in damages — if the injunction is wrongly granted and your spouse suffers loss, you may be liable.