Divorce is often a complicated and emotionally charged process. However, once the dust settles, questions about financial fairness can linger. One common concern is whether you can carry out post-divorce asset tracing.
Whether you’re wondering about hidden assets, ensuring an equitable settlement, or seeking clarity on what is legally allowed, it’s crucial to understand the boundaries of asset tracing. We look at the legalities, methods, and potential challenges in investigating your ex’s financial dealings after divorce.
Is It Legal to Trace Assets After Divorce?
The short answer is yes. However, this comes with legal and ethical conditions. This is what you need to know:
Legal Methods Only
racing assets is allowed, but it must be done legally. Hacking or other illegal activities are not an option.
Professional Assistance
It’s best to get help from professionals like divorce solicitors, forensic accountants, or licensed private investigators. These experts ensure everything is done correctly.
Financial Disclosure Obligations
During the divorce process, both parties must fully disclose their financial situation. This includes assets, liabilities, and income.
Continuing Duty of Disclosure
Even after the divorce is finalised, you must still disclose any major financial changes that could impact the settlement.
Why Might You Need to Trace Assets Post-Divorce?
If you suspect your ex-spouse hid assets during the divorce, asset tracing can help uncover those. It’s also useful if your ex isn’t following the financial settlement, as tracing can identify resources to enforce it.
If you think your ex’s financial situation has improved since the divorce, tracing can support a request to adjust the divorce settlement. Additionally, if there are concerns about child maintenance payments, asset tracing can help if your ex is underreporting income to avoid paying a fair amount.
What Are the Signs That Your Ex Might Be Hiding Assets?
Before starting asset tracing, look for signs that your ex might be hiding assets. Sudden changes in spending habits or lifestyle or unexplained transfers and withdrawals from bank accounts can be red flags. If your ex is slow to share financial details or avoids giving necessary information during divorce proceedings, something could be hidden.
Other signs include claims of sudden business losses or finding unknown bank accounts or investments. Purchases made in someone else’s name or overpaying taxes or creditors with plans to get the money back later are also signs that assets may be hidden.
How Can You Legally Trace Assets After the Divorce?
There are several legal methods to trace assets after divorce:
Review Financial Records
Carefully examine bank statements, tax returns, and other financial documents for inconsistencies or unexplained transactions. This can help you spot signs of hidden assets. Consult a qualified financial expert or attorney for further guidance if you suspect discrepancies.
Conduct Public Records Searches
Check property deeds, business registrations, and other public records to uncover undisclosed assets that may be tied to your ex. Keep in mind that access to public records varies by jurisdiction. You may need professional assistance to navigate this process effectively.
Use Online Resources
Use social media and internet searches to gather information that could reveal hidden assets or inconsistencies in your ex’s lifestyle. For example, posts about expensive purchases or vacations could indicate undisclosed income or property. However, you must respect privacy laws and avoid any actions that could be deemed illegal or intrusive.
Engage a Forensic Accountant
A forensic accountant analyses complex financial records to find hidden assets, income, or fraudulent activity. They can trace transactions and offer expert testimony in legal proceedings. This is especially helpful for cases involving businesses or investments.
Hire a Private Investigator
Licensed private investigators can legally gather evidence of undisclosed assets using surveillance and other investigative methods. Make sure the investigator follows the law. Any illegal evidence may be rejected in court and could cause legal problems.
Seek Court Orders
If needed, you can apply for court orders to force your ex or third parties (like banks or employers) to disclose financial information. This legal step can ensure fairness and transparency in asset division. However, it may require strong legal support depending on your location.
What Legal Steps Can You Take If You Uncover Hidden Assets?
You might be able to ask the court to set aside the original financial order and get a new settlement if the non-disclosure is serious. You can also start enforcement proceedings to ensure your ex-spouse follows the existing financial order.
If there has been significant non-disclosure, you can apply to change the financial order to match the true assets. If your ex deliberately failed to disclose assets, they could be held in contempt of court. This can lead to serious legal consequences.
What Are the Challenges in Post-Divorce Asset Tracing?
Asset tracing can take a lot of time and money. There may also be legal limits on what financial information you can access.
Some people use complex methods, like offshore accounts or cryptocurrency, to hide assets. This makes it difficult to track the assets. If your ex is uncooperative, gathering the information you need can be even harder.
While there’s no strict time limit for financial claims in divorce cases in the UK, waiting too long may make the court less willing to revisit financial matters.
Protect Your Financial Interests Even After Divorce Proceedings
Tracing assets after a divorce can be complex, but it may be necessary to ensure a fair division of assets. If you suspect your ex-spouse has hidden assets, it’s important to get legal advice to explore your options and make sure any asset tracing is done legally and ethically.
Partner with Global Investigations
Global Investigations specialises in asset tracing. We can help uncover hidden assets during and after divorce. Our experienced investigators work with legal professionals to ensure everything is done according to UK law, helping you secure a fair financial settlement. Contact us today for a confidential consultation.