Non-Disclosure in Financial Proceedings: Why Full Transparency Matters

Non-Disclosure in Financial Proceedings: Why Full Transparency Matters and How Courts Respond

Non-disclosure can undermine the entire financial remedy process. When a spouse refuses to provide honest and complete financial information, it causes delay, increases costs, and can lead to unfair outcomes.

The Family Court takes non-disclosure extremely seriously because it prevents the court from achieving a fair settlement.

As a solicitor specialising in financial remedy cases, I regularly advise clients who are facing incomplete, misleading, or deliberately concealed financial disclosure.

Understanding how non-disclosure is treated — and the consequences — is essential for anyone going through a financial settlement on divorce.

What Is Non-Disclosure?

Non-disclosure occurs when a party:

• Fails to provide full and accurate information about their finances
• Hides or undervalues assets
• Refuses to disclose income, property, business or pension information
• Delays or obstructs the process to avoid scrutiny

Financial disclosure must be full, frank and honest. Anything less can amount to non-disclosure.

Why Full Disclosure Is a Legal Duty

The financial remedy process is built on fairness. The court can only reach a fair decision if both parties provide complete and truthful financial information.

This duty applies whether you settle by consent or through the court.

Disclosure normally includes:

• Property and land (UK and overseas)
• Bank accounts, savings and investments
• Business interests, shares and trusts
• Pensions
• Debts and liabilities
• Income, bonuses and benefits

Hiding or manipulating information is viewed as a breach of trust and of legal duty.

Common Forms of Non-Disclosure

Non-disclosure can be deliberate or subtle. Common tactics include:

• Transferring money to relatives or third parties
• Under-reporting income or business profits
• Claiming assets “no longer exist”
• Sudden changes in earnings or company dividends
• Delaying disclosure to pressure the other party
• Cryptocurrencies or offshore assets not declared

Even partial or selective disclosure can significantly distort a financial outcome.

How the Court Deals With Non-Disclosure

The court has wide powers to investigate and respond to non-disclosure, including:

• Ordering further disclosure and documentation
• Drawing adverse inferences
• Appointing forensic accountants or experts
• Making cost orders against the non-compliant party
• Imposing penal notices or, in extreme cases, committal to prison

If the court believes assets are being hidden, it may adjust the settlement in favour of the compliant party.

Consequences of Non-Disclosure

Non-disclosure can have serious consequences, including:

• A less favourable financial outcome
• Payment of the other party’s legal costs
• Re-opening of a final order, even years later
• Damage to credibility before the court
• Enforcement action or penalties

The Supreme Court decision in Sharland v Sharland [2015] UKSC 60 confirmed that settlements can be set aside where non-disclosure undermines fairness.

What If You Suspect Your Spouse Is Hiding Assets?

If you suspect non-disclosure, early legal advice is critical. A solicitor can:

• Identify inconsistencies or gaps in disclosure
• Request further information and evidence
• Raise concerns formally with the court
• Instruct forensic or financial experts
• Protect you from accepting an unfair settlement

Once a settlement is reached, reversing it becomes more difficult — though possible where dishonesty is later discovered.

How to Protect Yourself Against Non-Disclosure

• Do not settle without full disclosure and evidence
• Question anything unclear or incomplete
• Ensure overseas assets and pensions are verified
• Use experts in complex or high-value cases
• Formalise any agreement with a Financial Consent Order

A rushed settlement can put your long-term financial security at risk.

Key Points to Remember

• Full disclosure is a legal duty
• Non-disclosure carries serious financial consequences
• The court has strong investigative powers
• Hidden assets can lead to orders being overturned
• Early legal advice protects against unfair outcomes

Final Thoughts

Non-disclosure damages trust, prolongs disputes and risks long-term financial loss. Professional advice is essential where transparency is in doubt.

Contact Prime Legal Solicitors

We specialise in complex financial remedy cases, including non-disclosure and hidden assets.

Call 0330 341 4757 or use our online enquiry form to book an Initial Consultation.