When divorce involves significant wealth, one of the hardest questions is whether you can trust the financial picture being presented to you.

You may be worried that assets are being hidden, undervalued or moved out of reach. Or you may be a business owner, entrepreneur or someone with inherited wealth who is concerned about how to protect assets properly without being accused of concealment.

These are very different concerns, but they often meet at the same point: the need for clear, accurate financial disclosure and a strategy that protects your position from the outset.

In complex or high-value divorces, early advice can be critical. It can help identify whether concerns about non-disclosure have substance, what evidence may be needed, and how legitimate wealth-protection arrangements should be explained and presented to the court.

At JMW, we help clients cut through complex financial arrangements and focus on what matters: understanding the true financial picture, protecting their position and making informed decisions from the outset. Our family law specialists regularly advise HNW and UHNW individuals, business owners, professionals, trustees and financially dependent spouses in cases involving business interests, trusts, inherited wealth, international assets and concerns about non-disclosure. Our experience shows that early advice is often the difference between identifying a problem quickly and discovering it after significant damage has been done.

The duty of full and frank disclosure

In financial remedy proceedings following divorce, both parties are under a duty to provide full and frank disclosure of their financial circumstances. This includes details of their income, assets, liabilities, pensions and financial interests. The court's ability to achieve a fair outcome depends upon receiving an accurate picture of the parties' finances.

Importantly, this duty is ongoing. Disclosure obligations do not end once financial information has been exchanged. If circumstances change or further assets come to light, those matters must also be disclosed.

For most cases, disclosure takes place through Form E, which requires detailed information supported by documentary evidence such as bank statements, company accounts, tax returns and pension valuations.

What do people mean by "hidden assets"?

The term "hidden assets" covers a wide range of situations.

Sometimes there is deliberate concealment. In other cases, assets may not technically be hidden but have been undervalued, transferred, structured in a complicated way or inadequately disclosed.

In higher-value cases, we regularly see issues involving:

• Business interests and private companies
• Trust structures
• Offshore assets
• Investment portfolios
• Cryptocurrency holdings
• Deferred bonuses or incentive schemes
• Inherited wealth
• Family investment vehicles
• International property holdings

These structures are not inherently inappropriate. Many have legitimate commercial, tax or succession-planning purposes. However, their complexity can sometimes make it more difficult to establish the true financial picture.

Warning signs that may warrant investigation

Not every suspicion will be justified. Equally, some concerns should not be ignored.

Potential warning signs can include:

• Unexplained transfers of money before separation
• Sudden changes in spending patterns
• Missing financial documents
• Newly asserted debts
• Significant lifestyle expenditure that appears inconsistent with disclosed income
• Undervalued business interests
• Complex trust or corporate arrangements that are difficult to understand
• Large cash withdrawals
• Cryptocurrency transactions that have not previously been mentioned

Courts are generally more interested in evidence than speculation. Allegations of hidden assets should therefore be approached carefully and supported by objective evidence wherever possible.

What can be done if you suspect assets are being hidden?

The family court provides a number of tools designed to test financial disclosure. Depending on the circumstances, these may include detailed questionnaires, applications for specific disclosure, expert evidence and, in appropriate cases, forensic accounting investigations.

In many HNW cases, forensic accountants play an important role. They may analyse business accounts, identify unusual transactions, review corporate structures or assist in understanding complex financial arrangements.

The objective is not simply to uncover wrongdoing. It is to ensure that any settlement is based on reliable information and reflects the true financial position.

A word of caution about allegations

High-value cases often involve strong suspicions of hidden wealth. However, the existence of suspicion does not automatically mean that undisclosed assets exist.

The reported case of DH v RH (No3) (Final Hearing)-[2024] EWFC 79 demonstrates this point. The wife alleged that the husband had failed to disclose substantial cryptocurrency holdings and other assets potentially worth many millions of pounds. After reviewing the evidence, the court concluded that it was not satisfied there was a proper basis for finding that significant undisclosed assets existed beyond those disclosed.  

The lesson is an important one. Courts will investigate credible evidence of non-disclosure, but they will not make findings based on speculation alone.

What about protecting assets?

Many readers of this article will be on the other side of the discussion.

Entrepreneurs, business owners, professionals and individuals with inherited wealth are often less concerned about hidden assets and more concerned about protecting legitimate wealth.

Legitimate protection strategies may include:

• Prenuptial agreements
• Postnuptial agreements
• Appropriate trust structures
• Succession planning
• Shareholder agreements
• Family investment arrangements
• Careful record-keeping regarding inherited wealth and non-marital assets

For wealthy families, these measures often form part of a broader long-term wealth preservation strategy. They can provide clarity regarding how assets were acquired, how they are owned and how the family intends them to be treated in the future.

Practical steps you can take now

Whether you are concerned about hidden assets or looking to protect wealth appropriately, there are several sensible steps you can take:

Keep financial records organised. Clear documentation often becomes invaluable if questions later arise.

Seek advice early. Waiting until concerns have escalated can make matters significantly more complicated.

Do not make assumptions. Apparent inconsistencies may have legitimate explanations.

Consider the wider financial picture. Businesses, trusts and investment structures often require specialist analysis.

Take a strategic approach. Financial issues in divorce are rarely resolved through one document or one conversation.

How JMW can help

If you are worried that the financial picture in your divorce may be incomplete, or you want to protect significant wealth in a clear and lawful way, early specialist advice can make a real difference.

A confidential initial conversation can help you understand whether your concerns are likely to justify further investigation, what evidence may be needed, and which steps are available to protect your position.

JMW’s specialist family law team regularly advises clients in complex and high-value financial cases involving businesses, trusts, inherited wealth, international assets and concerns about non-disclosure. We can help you approach the process strategically, proportionately and with a clear understanding of the risks and options.