Hidden Assets in Divorce: Know Your Rights Under Family Law

Divorce can be a challenging and emotionally taxing experience. One of the most critical aspects of a divorce settlement is the fair division of assets. Unfortunately, some partners may attempt to hide assets to secure a more favourable financial outcome. In Australia, the Family Law system ensures that both parties receive a just and equitable property settlement. But what happens when a partner hides assets? In this article, we explore your rights, the legal implications, and steps you can take to protect yourself if you suspect financial misconduct during a divorce.

Hidden assets refer to any property, income, or financial resource that one partner conceals to reduce their financial obligations during a divorce. These assets can take various forms, such as:

• Undisclosed bank accounts
• Cash kept outside joint accounts
• Properties not declared
• Investments or shares held in another person’s name
• Business revenue or interests
• Personal valuables like jewellery or artwork
• Offshore accounts

Under Australian Family Law, both parties are legally required to provide full and honest disclosure of all assets, liabilities, and financial resources during divorce proceedings. Failing to do so constitutes a breach of this obligation and can have serious legal consequences.

The Family Law Act 1975 governs property settlements in Australia. It mandates that all assets, debts, and financial resources be disclosed by both parties to ensure a fair and equitable division of property. If one partner is found to have hidden assets, the court can take various actions to rectify the situation.

Under Australian Family Law, both parties are entitled to full financial disclosure from each other. This includes providing bank statements, tax returns, property ownership documents, and any other financial records. Failure to provide full disclosure can lead to severe penalties.

Read More: What Is the Penalty for Hiding Assets in a Divorce in Australia?

If you suspect your partner is hiding assets, you have the right to investigate through legal means. This can include hiring forensic accountants or financial investigators to uncover hidden financial resources. You may also find this helpful guide on what to do if you think your spouse is hiding assets for practical next steps.

In cases where hidden assets are discovered after a property settlement has been finalised, you have the right to apply to the court to amend the settlement. The court has the discretion to alter previous orders if evidence of financial misconduct is presented.

Australian courts take financial disclosure obligations seriously. If a partner is found guilty of hiding assets, the court can impose several penalties, including:

The court may revise the property settlement to ensure a fair distribution of assets.

The offending party may be ordered to pay financial penalties or cover the legal costs incurred by the other party.

In extreme cases, hiding assets can result in criminal charges, especially if fraud or deceit is involved.

Additionally, the court may consider wastage in family law, where one partner deliberately wastes or mismanages assets to disadvantage the other party.

Identifying hidden assets can be difficult, but there are several warning signs that may indicate financial misconduct:

If your partner suddenly becomes secretive about finances, stops sharing bank statements, or opens new accounts without explanation, it may be a red flag.

If your partner owns a business, they may attempt to hide income or assets through complex business structures, such as trusts or offshore accounts.

If important financial documents, such as tax returns, property deeds, or investment statements, are missing or difficult to access, it could indicate an attempt to conceal assets.

Look for unusual financial transactions, such as large cash withdrawals, unexplained transfers, or sudden purchases of high-value items.

If you suspect your partner is hiding assets, it’s essential to act swiftly and seek legal advice. Here are some steps you can take:

A family lawyer experienced in property settlements can provide invaluable advice on how to handle suspected hidden assets. They can guide you through the legal process and help you gather evidence.

Your lawyer can request full financial disclosure from your partner. This is a legal requirement, and failure to comply can have serious consequences.

Forensic accountants specialise in identifying hidden assets. They can analyse financial records, track transactions, and uncover any undisclosed financial resources.

Collect any evidence that may support your claim of hidden assets. This could include bank statements, emails, property records, or witness testimonies.

If hidden assets are discovered, your lawyer can file a court application to amend the property settlement or impose penalties on the offending party.

In a recent Australian case, a spouse was found to have hidden significant business revenue in a separate account under a different name. The court ordered a revised property settlement, awarding the other spouse a larger share of the marital assets.

Another case involved a partner who concealed funds in an offshore account. The court imposed financial penalties and adjusted the property settlement to ensure the undisclosed assets were considered.

To minimise the risk of hidden assets during a divorce, consider the following preventative measures:

Consulting a lawyer early in the process can help ensure all assets are disclosed and properly accounted for.

Encourage open communication about finances during the marriage to reduce the likelihood of hidden assets.

Keep copies of bank statements, tax returns, and property ownership documents.

For more information on property settlements and financial disclosure, visit the following resources:

• Family Court of Australia – Official court information on property settlements and divorce processes.
• Relationships Australia – Support services for families going through separation or conflict.
• Financial Counselling Australia – Guidance on managing finances during and after divorce.

Divorce can be a complex and emotionally charged process, especially when hidden assets are involved. At New South Lawyers, we specialise in uncovering hidden assets to ensure you receive a fair property settlement. Our expert legal team can guide you through the process, protect your financial interests, and help you achieve the best possible outcome.

If you suspect your partner is hiding assets, don’t wait.