How Can I Protect My Assets In Divorce?

You cannot hide your assets during divorce. Doing so could result in penalties.

The best way to protect your assets from divorce proceedings is to sign a prenup before getting married, or a post-nup if you’ve already tied the knot.

Full and frank disclosure of assets

When you get divorced, you and your ex-spouse must sort out a financial settlement. The court requires that each person makes ‘full and frank disclosure’ of their financial situation. This means you have to provide details about all your assets, even if they’re located abroad. Negotiations regarding a financial settlement can then begin.

Some people try to hide assets during the disclosure process. They think that in keeping the assets secret, they will be protected from divorce proceedings. However, family lawyers are wise to these tactics. They can ask probing questions to determine what has happened to missing assets. They can also review the financial disclosure provided to look for anomalies.

If a family lawyer is concerned that someone is concealing assets during divorce, they can bring this to the court’s attention. The court will then investigate the matter. It is extremely difficult to hide assets from the court’s investigations.

Consequences of hiding assets during divorce

Penalties can be imposed if the court deems that someone has purposely hidden or transferred an asset in the hope of depriving their ex-spouse. The most likely penalty is a distribution to the other party to reflect the asset or earnt money that has been disposed of. The court may also order the payment of costs and legal fees as a penalty.

Hiding assets during divorce can also influence the court’s decision when it determines the financial settlement. Ultimately, the court will view the party who has transferred the assets/earnt money unfavourably. This may result in a more positive settlement in the other party’s favour.

All in all, it is extremely difficult to hide assets from the court’s scrutiny. Any attempt to do so will result in penalties and have far reaching consequences.

Prenups and post-nups

If you want to protect your assets from divorce, you must take action before your relationship deteriorates. This means putting a pre-nuptial or post-nuptial agreement in place. This is something our family law solicitors can help you with.

Alternatively, if you’re concerned that your ex-spouse is hiding assets during the divorce process, our divorce solicitors can investigate the matter further. If there is any indication that assets have been hidden or disposed of, we can bring this to the court’s attention.

Contact us now for a free initial enquiry with an experienced family law solicitor.