Non-Disclosure in Divorce UK | Hidden Assets & Legal Consequences

Non-Disclosure in Divorce UK: Hidden Assets and Legal Consequences

Non-disclosure in divorce UK proceedings is treated as a serious issue by the family courts. When one party fails to provide full and accurate financial information, it undermines the fairness of the process and can lead to significant legal consequences.

Financial settlements following divorce are based on transparency. Both parties are under a legal duty to provide honest disclosure so that the court can reach a fair outcome.

This guide explains what non-disclosure means, why full financial transparency is required, and how the court responds when assets are concealed.

What Is Financial Disclosure in Divorce?

Financial disclosure is the process by which both parties set out their full financial position during divorce proceedings. This includes assets, income, liabilities and future financial expectations.

In non-disclosure in divorce UK cases, one party fails to comply with this duty, either deliberately or through omission.

• Property and land, both in the UK and overseas
• Bank accounts, savings and investments
• Pensions and retirement provision
• Business interests and company shares
• Debts and liabilities
• Income, bonuses and benefits

Disclosure must be full, frank and ongoing throughout the proceedings.

Common Forms of Non-Disclosure

Non-disclosure can take many forms, ranging from obvious concealment to more subtle tactics that distort the true financial position.

Examples commonly seen in non-disclosure in divorce UK cases include:

• Failing to declare bank accounts or investments
• Undervaluing property or business assets
• Transferring funds to third parties
• Delaying disclosure to obstruct proceedings
• Omitting pensions or overseas assets

Even partial disclosure can result in an unfair settlement.

Why Full Disclosure Is a Legal Requirement

The family court can only reach a fair decision if it has a complete picture of each party’s financial circumstances.

In non-disclosure in divorce UK matters, the court treats dishonesty as a breach of legal duty rather than a negotiating tactic.

The legal framework for financial settlements is set out in the Matrimonial Causes Act 1973, which requires the court to assess all relevant financial factors.

Further information on financial settlements is available via UK Government divorce guidance.

How the Court Responds to Non-Disclosure

The court has wide powers to address dishonesty and protect the integrity of the financial remedy process.

In non-disclosure in divorce UK proceedings, the court may:

• Order further disclosure or documentation
• Draw adverse inferences about hidden assets
• Appoint forensic accountants or experts
• Make costs orders against the non-compliant party
• Set aside existing financial orders

Courts may also adjust settlements to reflect suspected concealment.

Setting Aside Financial Orders

Financial orders can be challenged after they are made if significant non-disclosure later comes to light.

The Supreme Court confirmed in Sharland v Sharland [2015] UKSC 60 that settlements can be reopened where dishonesty undermines fairness.

This principle is central to addressing non-disclosure in divorce UK cases and protecting the integrity of the court process.

What to Do If You Suspect Hidden Assets

Suspicion of hidden assets should never be ignored. Early legal advice allows concerns to be addressed before settlements are finalised.

A solicitor can identify inconsistencies, request further disclosure and raise concerns formally with the court.

Independent guidance on the court’s approach to children and families can also be found through CAFCASS, where proceedings involve child-related issues.

Why Legal Advice Is Essential

Financial settlements have long-term consequences. Accepting an agreement based on incomplete information can place financial security at risk.

By addressing non-disclosure in divorce UK concerns early, individuals protect themselves from unfair outcomes and future disputes.

Contact Prime Legal Solicitors

If you are concerned about financial disclosure or suspect assets are being concealed, our family law team can provide expert advice.

Call 0330 341 4757 or complete our online enquiry form to speak with a family law solicitor today.