Discovering that your spouse may be hiding assets during divorce proceedings can be both devastating and maddening. Beyond the emotional betrayal, financial deception can significantly impact your settlement and your financial future. If you believe your spouse is not being transparent about their finances, you need to act swiftly and strategically to protect your interests.

Document Review

Whether your case is before the Court or you are working to resolve it out of Court, financial strategy generally begins with a review of all relevant financial information. If your spouse is hiding assets or information, this is a strong indicator that you will need the assistance of a skilled Family Law lawyer, and likely Court involvement, to optimize your financial outcome.

You should begin by gathering all relevant financial information within your possession, for both yourself and your spouse, and sharing it with your Family Law lawyer. Your Family Law lawyer will guide you as to what documentation/information is relevant, and what should be given priority. If a Court process is commenced, the Family Law Rules [O. Reg. 114/99: FAMILY LAW RULES] compel both parties to exchange sworn, comprehensive financial statements with full supporting documentation.

Your Family Law lawyer will review tax returns, paystubs, bank statements, credit card statements, loan applications and other important financial disclosure to ensure you are fully informed and prepared to enter into financial negotiations. We recommend preserving any financial documents, emails, and other records that include this valuable information about your family’s assets. A good family law lawyer will look not only at the documents and expenses they can see, but at those they cannot see. A good analysis of your spouse’s financial situation includes looking at your spouse’s known assets, their lifestyle, their reported income, and any discrepancy between them.

Interrogation

When necessary, your divorce lawyer will require a formal questioning of your spouse to compel disclosure and receive information of hidden bank accounts, undisclosed income sources, transfers to third parties, or other assets that have not been voluntarily disclosed. This can be done in the Court process via Family Law Rules [O. Reg. 114/99: FAMILY LAW RULES] that allow for written questioning of your partner and /or oral questioning of your partner under oath. There are even Rules that allow for the questioning of third parties who have relevant information, if a case can be made for this before the Court.

Forensic Review

Other strategies can include hiring a forensic accountant that specializes in asset tracing, income evaluation and uncovering financial discrepancies. This expert will review the documentation and information within your possession and obtained through requests and interrogation, above, with tools and expertise beyond those that you or your divorce lawyer can bring to the table. This strategy is best suited for complex, high value tracing of assets.

Court Ordered Disclosure

In some cases, your divorce lawyer may need to request a Court Order to ensure your spouse’s compliance with mandatory financial disclosure requirements. While going to court involves legal costs, judges can impose significant financial, and other, penalties on parties who fail to disclose assets or obstruct the discovery process. The threat of these penalties, which can include paying a portion of your legal fees, often motivates uncooperative spouses to comply with disclosure obligations.

Preservation or Restraining Orders

Where you can provide evidence that your partner is hiding assets, moving assets outside of the jurisdiction or depleting assets, the Family Law Courts have authority to issue orders to preserve property, and restrain the sale, transfer or concealment of property. Similarly, bank accounts can be frozen. Gathering as much credible evidence of your partner’s efforts to hide or deplete assets as quickly as possible is key to successfully accessing these kinds of orders. Even the business operations of a spouse can be affected through Court ordered interventions to preserve the value and functioning of a business.  

The techniques described above are just some of the tools that a skilled divorce lawyer can apply to ensure that you are not short-changed by your partner’s failure to disclose all assets, income and relevant financial information. In cases where there is complexity as to financial circumstances, it is essential to work with a divorce lawyer who has both experience and expertise in managing these complexities.

At Bair Family Law, we are skilled in managing complex financial cases. Your family law lawyer will be able to guide you, review your finances, and recommend strategies to ensure that your finances are protected. 

Working with a knowledgeable family law lawyer can make all the difference in navigating this challenging life transition smoothly and protecting your interests for the future.​​​​​​​​​​​​​​​​

Perla Smith
Associate Lawyer

Perla Smith, a family lawyer at Bair Family Law, is known for her progressive, powerful and compassionate approach to surmounting family law challenges. She thrives on generating commonsense and calm in a space that is disrupted by conflict. She authentically connects with her clients, to understand their interests; devise their optimum strategy for success and support them on their family law journey. She is in ardent support of mediation and other non-Court options for resolution because she has seen firsthand how clients depart from these processes with a level of gratification, security and healing that is unparalleled in the Court process. However, where Court is required, she is the fierce advocate that a client needs, to optimize their outcome. In what can be an overwhelming time in a person’s life, Perla brings powerful, reasoned, rewarding solutions. Read More…

The information contained in this blog is provided solely for general interest; may not reflect current legal developments and should not be relied upon or construed as legal advice. Online readers should not act upon any information in this blog without first seeking professional advice. The sending or receipt of this information does not create a solicitor-client relationship between the reader and the content creator. For specific, comprehensive and up-to-date information, or for help with a particular factual situation, you should seek the advice of a family law lawyer.