My Ex Is Hiding Money or Assets. How Do I Find Out What They Really Own?

You know what your former partner earns.

You know how you lived during the relationship.

But after separation, the numbers suddenly do not make sense.

The bank balances are lower than expected. Money has been transferred between accounts. There is a company you know very little about. A trust appears on a tax return.

Or your ex simply tells you:

“There is nothing else.”

You do not necessarily have to take their word for it.

Do both parties have to disclose their finances?

Yes.

Parties to family law financial proceedings have significant duties of financial disclosure.

The obligation is one of full and frank disclosure and continues throughout the proceedings.

Depending on the circumstances, disclosure can extend to interests in property, income, companies, trusts and other financial resources.

How do you find hidden bank accounts?

Sometimes the best evidence of an undisclosed account comes from the accounts that have been disclosed.

Look at transfers.

If money is regularly being transferred to an unfamiliar account number, where is it going?

Tax returns, loan applications, business records and other financial documents can also identify financial institutions or interests requiring further investigation.

Where appropriate, legal processes such as subpoenas can be used to obtain documents from third parties.

What if money is hidden in a company?

Companies need to be treated as separate legal entities, but a person’s ownership and control of a company can be highly relevant.

The investigation may involve examining:

• shareholdings
• directorships
• company financial statements
• tax returns
• loan accounts
• payments to related entities
• wages and director fees
• retained profits
• transactions involving shareholders or family members

The question is not simply how much cash is sitting in the company bank account.

What about family trusts?

Trusts can be particularly complex.

Simply being described as a beneficiary does not automatically mean somebody personally owns every asset of a trust.

But the structure and practical control of the trust can be highly relevant.

Questions may include: Who is the trustee? Who appoints or removes the trustee? Who are the beneficiaries? Who has historically received distributions? Who makes the decisions? What assets does the trust hold?

This is an area where obtaining the trust deed and financial records can be critical.

Can cryptocurrency be included?

Cryptocurrency and other digital assets can form part of the financial landscape that needs to be disclosed and considered.

They can create additional tracing challenges because assets may be held across exchanges or private wallets.

If you have evidence suggesting cryptocurrency exists, tell your lawyer.

What if assets have been transferred to relatives?

Transfers to parents, siblings, new partners or related companies do not automatically mean the asset is permanently beyond consideration.

The transaction needs to be investigated.

When did it occur? Was anything paid for the asset? Was it genuinely sold? Was it repayment of a legitimate debt? Who now controls it? What documentation exists?

The answers matter.

Can a forensic accountant find hidden assets?

Forensic accountants can be extremely useful in appropriate cases.

They may analyse complicated financial records, trace transactions, examine company and trust structures and identify inconsistencies requiring further investigation.

But not every property matter needs one.

The cost needs to be proportionate to the size and complexity of the asset pool.

What happens if my ex lies about their assets?

Non-disclosure can have significant consequences in family law proceedings.

Depending on the circumstances, it may affect how the Court deals with the proceedings, costs and ultimately the property dispute.

The obligation to disclose should be taken seriously.

Start with what doesn’t make sense

You do not need to arrive at your first appointment knowing where every dollar is.

Often the starting point is much simpler:

“This doesn’t add up.”

Bring the documents you have.

Explain what you know about the family’s finances, businesses and investments.

Identify anything unusual.

From there, we can work out what information should exist, what has already been disclosed and what still needs to be obtained.

Melmark Law regularly acts in complex family law property matters involving businesses, trusts, companies, disputed disclosure and allegations of hidden assets.

You should not agree to a property settlement until you have sufficient information to understand what you are actually dividing.

This article provides general information only and does not constitute legal advice. You should obtain advice about your individual circumstances.