In divorce proceedings involving wealth, financial disclosure forms the basis for every decision the court makes.

If one party chooses to conceal assets or mislead the other about their financial position, the outcome can alter dramatically, and not in their favour.

The costly penalty for misleading the court over assets

In the recent case of VTY v GDB, the husband disregarded court orders, withheld documents, and attempted to mislead the court about his financial circumstances.

The result was a substantial award to the wife, including over £1.2 million in assets, a mortgage-free property, and private school fees, while the husband received considerably less and was ordered to pay legal costs.

The court drew clear conclusions from his conduct and adjusted the financial outcome accordingly.

The obligation to disclose

Every party to financial remedy proceedings is required to provide a complete and accurate account of their financial position.

That includes income, assets, pensions, liabilities, and interests in trusts or businesses.

This information is given through Form E and forms the foundation of the case.

For all clients and especially those with complex financial arrangements such as family businesses, offshore structures, or legacy wealth, the disclosure process requires care and precision.

Any gaps, inconsistencies, or omissions may be treated as deliberate and carry consequences.

How the court responds to dishonesty

The courts are experienced in identifying when information is being withheld.

If there is reason to believe that one party is concealing assets, the court may:

• Infer the presence of undisclosed wealth based on available evidence
• Reduce the dishonest party’s share of the assets
• Reopen previous financial orders if new evidence comes to light
• Award costs against the party who failed to disclose

In serious cases, financial misconduct may also affect decisions around maintenance, housing, and the treatment of family needs.

Acting where non-disclosure is suspected

If there is reason to believe that a spouse is not being forthcoming, it is important to address this early.

Our team can:

• Apply to the court for specific disclosure (e.g. company accounts, trust documents, or bank statements)
• Seek third-party disclosure where appropriate
• Advise on whether the court is likely to draw inferences or make adverse findings

Taking a clear position

When wealth is at stake, the court expects precision and honesty.

Attempts to obscure the truth rarely succeed and often backfire.

If disclosure is incomplete, we act quickly to expose it and protect your position.

Concerned about the accuracy of financial disclosure in your divorce? Our team can provide clarity and direction from the outset.

For further advice, please contact the Head of our Family & Relationship Team, Alison Green, at alison.green@mackrell.com or on 0207 240 0521.