Duty of Disclosure
Both parties have a legal duty to provide full and frank disclosure of their financial position. This includes:
All assets (even if overseas)All liabilitiesAll financial resourcesIncome and earning capacityWarning Signs
Red Flags
- Unexplained cash withdrawals
New business venturesSuddenly "failing" businessGifts to family membersOverseas transfersCryptocurrency interestsLifestyle doesn't match declared incomeCommon Hiding Spots
- Offshore accounts
Cash businesses (underreporting income)Assets in company or trust namesCryptocurrencyValuable items (art, gold, collectibles)Overpaying tax (refund later)Delaying income (bonuses, invoices)How to Investigate
Document Requests
In court proceedings, you can compel disclosure:
Subpoenas to banksSubpoenas to employersNotices to produce documentsFinancial Records
Review available records for anomalies:
Bank statementsTax returnsBusiness recordsCredit card statementsExpert Help
- Forensic accountant: Traces money flows, values businesses
Private investigator: Locates hidden assetsAsset search services: Checks property records, company registersCourt Powers
Drawing Inferences
If evidence suggests hiding, the court can:
Assume assets existAdd estimated value to the poolGive the non-hiding party a larger shareCost Orders
A party who fails to disclose may:
Pay the other party's investigation costsPay higher legal costsSetting Aside Orders
If hidden assets are discovered after orders are made, the orders can potentially be set aside.
Prevention
- Request full disclosure early
Don't sign agreements until satisfiedGet independent legal adviceConsider forensic accounting if suspicious
