Separation and divorce are stressful enough without worrying that your former partner isn’t being upfront about money. Unfortunately, hiding assets in divorce happens more often than people realise.
Under Australian family law, both parties must provide full and honest financial disclosure during property settlement. But sometimes one person tries to hide assets, whether out of fear of losing property, resentment, or a desire to control the outcome.
If you’re concerned that your ex may not be telling the whole truth, this blog explains how hidden assets are uncovered, what the penalties are, and the steps you can take to protect yourself.
The Legal Duty of Disclosure
The law requires both parties to disclose all assets, liabilities, superannuation, and financial resources. This includes:
- Income and bank transactions
- Property (houses, cars, valuables)
- Liabilities (mortgages, loans, credit cards)
- Superannuation balances
- Business interests, trusts, or companies
- Shares, investments, or other financial resources
This duty of disclosure is ongoing. It applies from the start of negotiations through to final settlement. If your ex fails to provide full disclosure, it’s not only unfair, it can also have serious legal consequences.
Common Tactics for Hiding Assets in Divorce
Sadly, some people do try to conceal their true financial position. Common tactics include:
- Transferring money to family or friends temporarily
- Undervaluing businesses or property
- Failing to disclose bank accounts, shares, or superannuation funds
- Creating false debts to make their finances look worse than they are
If something doesn’t feel right with your ex’s financial disclosure, it may be worth digging deeper.
How Hidden Assets Are Uncovered
Even if your ex is hiding assets in divorce, there are many ways the truth comes out. Hidden assets are often discovered through:
- Financial investigations by forensic accountants
- Subpoenas to banks, employers, or accountants
- Cross-checking documents like tax returns, bank statements, and company records
- Sharp questioning by an experienced lawyer during proceedings
Even if your ex is trying to be clever, there are many ways the truth comes out.
Penalties for Hiding Assets in Divorce
If the Court discovers that a party has failed to disclose assets, it can:
- Set aside or vary existing financial orders
- Order full disclosure of all financial resources
- Make costs orders, requiring the dishonest party to pay the other’s legal costs
- In serious cases, impose fines or even imprisonment for contempt of court
Courts take financial honesty very seriously, and dishonesty almost always backfires.
Why hiding assets rarely pays off
If your ex thinks hiding assets will give them an advantage, they’re wrong. It usually results in:
- A longer, more expensive legal process
- Damaged credibility in front of the Court
- Harsher outcomes once the dishonesty is uncovered
The safest path forward is always full transparency, and the Court will look favourably upon honesty over deception.
What To Do If You Suspect Hidden Assets
If you suspect your former partner isn’t being honest, you need to act quickly. Signs may include:
- Sudden changes in spending or unexplained withdrawals
- Money being moved between accounts or to family members
- Assets being undervalued or left off disclosure documents
Steps you can take:
Seek advice from a family lawyer immediately. A family lawyer can help you identify what information is missing and guide the next steps. We will formally request documents and financial records from the other party. If your ex doesn’t cooperate, we can apply to the court to obtain the necessary documents by way of subpoenas to banks, employers, or accountants.
Conclusion
Discovering that your former partner may be hiding assets is stressful, but you don’t have to face it alone. The law is on your side, and there are processes in place to uncover the truth and ensure fairness.
We have represented many parties where disclosure has presented challenges. The Orman Solicitors team will leave no stone unturned in order to uncover the truth. We will advocate for your rights and ensure you receive a fair outcome.
If you’re going through separation and are worried your ex might be hiding assets, reach out for a free and confidential conversation. We’ll give you clear, practical advice and help you take the right steps to protect your future.
Read next: What are my rights during a separation?
Disclaimer: The content presented in this article is offered for informational purposes and should not be construed as legal advice or a substitute for professional guidance. If you have questions or require legal assistance, we strongly recommend consulting with a Solicitor to address your individual circumstances.