A common concern we hear from clients after separation and during a property settlement, is: “I’m sure my ex is hiding money and assets.”
When you are negotiating a property settlement, it is important that you have confidence that all assets, liabilities, income and financial resources have been properly disclosed.
The family law system is built on the principle of full and frank disclosure. Each party is required to be transparent and provide complete and accurate information about their financial circumstances. You cannot negotiate a fair settlement if you do not know what is in the asset pool.
What Does “Hiding Assets” Actually Mean?
When clients say their ex is hiding assets or money, they are usually referring to one of the following situations:
- Bank accounts that have not been disclosed
- Large cash withdrawals shortly before or after separation
- Undisclosed cryptocurrency holdings
- Income being diverted through a business
- Money being transferred to family members or friends
- Assets held in the name of another person
- Undisclosed trusts or companies
- Valuable collections, investments or overseas assets
- Unexplained debts that appear after separation
In some cases, concerns arise because one party managed the finances throughout the relationship and the other simply does not know what assets, liabilities,or financial resouces exist. This can create significant anxiety at separation, particularly where a person feels they are being asked to make important decisions without a clear understanding of the financial position. Some clients even express regret that they were not more involved with the finances during the relationship.
It is important to recognise however, that this is a common dynamic in many relationships. It is not unusual for one party to take primary responsibility for financial management while the other focuses on other responsibilities within the family. A lack of detailed financial knowledge at the time of separation is something we encounter regularly.
What Can Be Done?
The first step is usually to obtain full and proper financial disclosure. Many concerns can be resolved simply by reviewing bank statements, tax returns, company records and other financial documents. Sometimes a person may be reluctant or refuse to provide their ex with all of their financial disclosure documents or information. We can assist in making sure that full disclosure is provided so that you can make an informed decision on dividing the asset pool, knowing what the pool exists of. There are a number of ways this can be achieved (from a simple request detailing all documents and information required, to carrying out searches and investations or issuing subpoenaes).
The Family Court takes non disclosure seriously. If a Court finds that a party has deliberately failed to disclose assets or financial resources, the consequences can be significant.
The Importance of Early Advice
If you believe your ex may be hiding money, obtaining advice early can make a significant difference. Whilst it may be tempting to start “digging around” yourself, accessing your former partner’s private accounts, intercepting communications or obtaining information unlawfully can create significant legal issues and may ultimately harm your own case.
If you have concerns about missing assets or undisclosed income, it is recommended that you obtain legal advice about the appropriate and lawful avenues available. The longer financial issues remain unexplored, the more difficult it can become to trace transactions, locate documents and obtain reliable evidence. Further, there may be a risk of your ex depeleting or reducing the asset pool.
At Doolan Callaghan Family Lawyers, we regularly assist clients in matters involving complex financial structures, family businesses, trusts, inheritances and concerns regarding incomplete disclosure and non-disclosure. Not every concern turns out to involve hidden assets. However, where questions exist, it is important that they are properly investigated so that any property settlement is based on accurate and complete financial information. Our team of experienced family lawyers can help you understand your options and guide you through the disclosure process.
