Hidden Assets in Divorce: do you know the red flags to look out for?

At Davidsons Forensic Accountants, we are regularly instructed by spouses or their solicitors who suspect their partner is hiding assets. They want to understand their partner’s finances and determine whether any accounts have been manipulated or assets hidden, which could affect their financial settlement upon divorce or separation. This article highlights some of the red flags to look out for.

How will a spouse know if their ex is hiding assets?

The obvious place to start is Form E, which summarises a spouse's assets, liabilities, and annual income. Form E is used when applying to the courts for a financial order as part of a divorce, dissolution, annulment or (judicial) separation. It will cover bank accounts, credit cards, savings, investments, pensions, and mortgages.

The beauty of a form E is not what is on it, but what may not be on it. Being a Chartered Accountant of many years, I can read between the lines and identify areas that require further investigation.

Another obvious place to start is the spouse’s bank and credit card statements. Unfortunately, Form E only requires the provision of 12 months of bank statements. Where possible, bank statements for longer periods should be requested.

Other red flags include:

1. Your ex stops receiving mail, which could indicate that important documents are being sent to a different address
2. Passwords to accounts or investments are suddenly changed
3. You are locked out from running a jointly owned or managed business
4. Assets are transferred into the names of family members, either temporarily or permanently
5. Your ex is investing in cryptocurrencies
6. Your ex suddenly changes their mind about the divorce and wants to ‘try again’ until their financial affairs are in order
7. High-value purchases are made with the intention of recouping the money post-settlement

Read more about the activity we look for in hidden assets cases in this article. Please contact Raymond Davidson on 07719 192257 or email us if you need assistance regarding potential hidden assets.