Hide and seek: how to find hidden assets in a divorce

It’s no secret that high-value Divorces can be very complicated, but it becomes significantly more complicated when one spouse attempts to hide matrimonial assets from the other.

In Scotland, divorce law is rooted in fairness and requires a full financial disclosure to be made by both parties. This means that hiding assets isn’t just unethical, it can also have serious legal consequences. In this article, we explore how hidden assets are handled under Scottish law, signs you may wish to look for which suggest that your spouse might be concealing wealth, and what tools are available to uncover assets which have been hidden.

Divorce and Financial Disclosure in Scotland

Under Scottish law, the financial picture of both parties must be disclosed fully and honestly. Everything which has been earned or obtained by the parties (whether in sole or joint names) during the period of the marriage is known as “matrimonial property”, which is due to be divided between the parties fairly – which means equally unless justified by special circumstances.

When a Divorce case goes to court, each party is required to submit a statement of their assets and liabilities. Unfortunately, not everyone plays by the rules, and it often comes to light that one party has hidden or failed to disclose some of their wealth.

Common Ways Assets Are Hidden

Some common tactics used to conceal wealth include:

• Undisclosed bank accounts – particularly offshore or held under a business name.
• Transferring assets to family or friends, or taking out fake loans due to family or friends
• Deliberately undervaluing property or business interests
• Withdrawing and hiding large amounts of cash
• Purchasing items like art, jewellery, or cryptocurrency to convert back into cash later
• Making their financial picture too difficult to understand, by transferring assets and cash between numerous bank accounts, corporate entities and property.

What Tools do we have for Uncovering Hidden Assets?

If you believe your spouse has hidden wealth from the divorce, the law provides various tools which can help to find them and bring them before the court, including:

Commission and Diligence – Sometimes also referred to as a “specification of documents” procedure, this is a legal procedure allowing you to request documents directly from banks, accountants, or other third parties who may be able to provide the information required.

Expert Forensic Accountants – These specialists analyse financial records for inconsistencies, which can be particularly useful in cases involving businesses or investments. They can also assist you with ensuring that corporate interests have been properly valued for the purposes of divorce and provide expert evidence on the nature of the company’s business dealings.

Interdicts – If you fear assets are being moved or sold, we can apply to the court for an interdict to freeze their ability to transact with the property they own.

What Happens if They’re Caught?

If it is found that assets have been concealed, dissipated or hidden, the court has many options available to them to redress the balance in your favour. They can award you a larger share of the assets which are available. They can also find the person who hid the assets in contempt of court, especially if they knowingly lied to the court in the giving of their evidence. If this is the case, you may also have a stronger case to be awarded the expenses of the action, meaning that the other party would need to pay a portion of your legal costs as well as their own.

Are you worried about hidden assets and need guidance?

If you’re going through a divorce and you are worried about concealed assets, we have a team of solicitors who are experienced in complex financial investigations, and have solid links with expert Forensic Accountants who can help to uncover them. The sooner you act, the better your chances are of finding and preserving those assets for fair division.