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Hidden or Undisclosed Assets

Hidden or Undisclosed Assets in Family Law: What You Need to Know

When you’re going through separation or divorce, the last thing you need is financial uncertainty—especially if you suspect your ex-partner isn’t playing fair. In family law, both parties have a legal duty to disclose all assets, liabilities, income, and financial resources. But unfortunately, it’s not uncommon for one party to hide or fail to disclose assets in an attempt to tip the scales in their favour.

If you’re worried that your former partner is concealing property, hiding money, or manipulating business records to reduce the asset pool, you’re not alone—and you’re not without options. At Melbourne Family Lawyers, we help clients uncover the truth and secure fair outcomes under Australian law.

What Are Hidden or Undisclosed Assets?

Secret bank accounts or cash holdings
Shares or investments in another name
Assets transferred to family or business associates
Trusts or companies used to obscure ownership
Underreported income or deliberately delayed payments
False liabilities (e.g., fake debts or loans to friends)

Why Full Disclosure Matters in Family Law

Under Section 75 of the Family Law Act 1975, both parties are required to provide full and frank disclosure of all financial circumstances. This obligation is ongoing and applies from the beginning of your property settlement negotiations until the final order or agreement is made.

Failing to disclose assets isn’t just unethical—it’s a breach of the law. Courts take non-disclosure seriously, and they have the power to impose penalties, reverse settlements, and even refer parties for prosecution if the deception is egregious.

Hidden or Undisclosed Assets

Common Methods Used to Conceal Assets

There’s no single method used to hide assets. Here are some of the tactics we frequently encounter:

Transferring assets to others: A partner may transfer property or bank funds to a friend, family member, or associate before separation—sometimes under the pretence of debt repayment or gifting.
Creating sham liabilities: Fake debts or inflated liabilities are often used to reduce the net asset pool. For example, a spouse may claim they owe large sums to relatives or shell companies.
Underreporting income: Self-employed individuals or business owners may manipulate their income by delaying invoices, funnelling funds through third parties, or misclassifying personal expenses as business-related.
International movement of funds: In Chang v Su [2020], a spouse was found to have transferred substantial amounts offshore to evade disclosure. The court ruled that the funds formed part of the asset pool regardless of location.

Using complex business structures

Family trusts, holding companies, and layered entities can make it difficult to trace ownership. However, the court can look beyond legal structures to determine the real beneficial interest.

Red Flags That Suggest Assets May Be Hidden

It’s not always obvious when your ex is concealing assets—but here are some red flags to watch for:

Unexplained reduction in income or sudden job changes
Missing or incomplete financial documents
Resistance to providing bank statements or tax returns
Frequent cash withdrawals or unaccounted-for spending
Unfamiliar business entities or trust accounts
Discrepancies between lifestyle and declared income
Changes to ownership of property, vehicles, or investments
If you notice one or more of these signs, it’s essential to raise them with your lawyer as early as possible.

Our Family Lawyers

Our lawyers have vast experience in Family Law. Whether your case involves a 50 million dollar business or a suburban house, a relocation with children to Preston or Paris, or a Divorce Application in Melbourne or Mumbai, rest assured that we know how to deal with it in the best possible way and obtain the best possible result for you.

How Forensic Accountants Can Help

In complex property settlements, especially those involving businesses, overseas accounts, or trusts, a forensic accountant can play a critical role. These experts analyse financial records, trace transactions, and uncover inconsistencies that may point to hidden assets.

At Melbourne Family Lawyers, we work closely with forensic accountants to build a robust case. Their reports can be used in court as evidence to demonstrate deception or uncover the true value of the asset pool.

Legal Remedies for Non-Disclosure

The court has wide-ranging powers to deal with non-disclosure. If hidden assets are uncovered, the following remedies may be available:

1. Reopening Final Orders: Under Rule 13.01 of the Family Law Rules 2004, a party can apply to set aside a property settlement if the other party failed to disclose relevant financial information. This was demonstrated in Black v Kellner [1992], where a wife successfully reopened a consent order due to the husband's concealment of business assets.
2. Cost Orders: The court may order the non-disclosing party to pay legal costs, especially if the deception causes unnecessary delays or requires forensic investigation.
3. Adverse Inference: If it’s found that a party deliberately withheld information, the court may draw an adverse inference and adjust the property division in your favour—even if the exact value of the hidden asset can’t be quantified.
4. Contempt of Court or Criminal Charges: In rare but serious cases, hiding assets can result in contempt of court or fraud charges.

Steps You Can Take If You Suspect Hidden Assets

If you believe your former partner may be hiding assets in your family law matter, it’s important to take immediate, strategic steps. Uncovering hidden or undisclosed property can be complex, but with the right guidance and evidence, it is absolutely possible. Here’s what you should do:

Stay calm and avoid direct confrontation. It might feel instinctive to confront your ex-partner the moment you suspect something is off. However, doing so could backfire. Confrontation can lead them to double down on concealment or move assets quickly to cover their tracks. Instead, remain composed and start building a clear picture of the financial landscape.
Begin collecting financial records. Start compiling any documentation you have access to—bank statements, credit card records, superannuation details, tax returns, business financials, trust deeds, loan applications, and even relevant emails or texts. If they’ve ever completed a financial disclosure for a mortgage or loan, those can also be useful in identifying inconsistencies or undeclared interests.
Track inconsistencies and red flags. Maintain a written log of suspicious behaviour or unusual financial activity. This might include cash withdrawals, extravagant purchases, sudden changes in income, transfers to relatives or business partners, or claims that certain assets "don’t exist" or "aren’t worth anything." These red flags, even if seemingly minor, can help build a pattern.
Talk to your lawyer as soon as possible. Legal support is essential in suspected hidden asset cases. At Melbourne Family Lawyers, we can assess the situation, issue subpoenas for bank and business records, apply to the court for disclosure orders, and, when necessary, engage forensic accountants. These specialists are trained to trace assets through complex structures such as trusts, companies, or overseas accounts.
Consider the use of subpoenas and court powers. If initial disclosures don’t add up, your legal team can apply to the Family Court for orders requiring third parties—like banks, accountants, or business partners—to provide information. These powers are especially useful when one party controls the financial documents and the other is kept in the dark.
Be proactive but strategic. The longer hidden assets go undiscovered, the harder they can be to trace. You don’t need to have all the answers straight away, but early action gives your legal team a better chance of preserving evidence and protecting your entitlements. Trust your instincts—but act based on advice, not emotion.

Remember, the Family Law Act 1975 places a duty on both parties to provide full and frank financial disclosure. If your ex-partner breaches this duty, the court has discretion to make serious adjustments to the final property division or even set aside earlier agreements.

You deserve a fair and transparent outcome. With the right help, you can uncover the truth and protect your financial future.

Case Study: A Business Owner’s Attempt to Conceal Property

Scenario: Martin ran a successful design business in Melbourne. When separating from his wife, he claimed the business had little value and provided minimal financial records. But inconsistencies in his declared income and business activity raised concerns.
Action Taken: Our team worked with a forensic accountant to review Martin’s bank records, supplier invoices, and asset register. It was discovered that Martin had transferred several high-value contracts to a “new” company registered in his brother’s name—effectively hiding business income.
Outcome: The court ruled that the new entity was a sham designed to obscure marital assets. The hidden value was added back into the asset pool, and Martin’s share was reduced accordingly.

Prevention: Protecting Yourself from Day One

While not all cases of non-disclosure are preventable, you can take steps to safeguard your financial future:
Keep your own copies of financial documents during the relationship
Avoid signing documents you don’t understand, especially those involving trusts or company changes
Consider a Binding Financial Agreement (BFA) if you’re entering a relationship with significant assets
Talk to a family lawyer early—even before separation—if you suspect financial irregularities
Early legal advice can make a major difference in the outcome of your settlement.

The Melbourne Family Lawyers Advantage

We’ve handled countless property settlements involving hidden or undisclosed assets. Whether it’s a complex business structure, an evasive former spouse, or unclear financials, our team has the experience and resources to fight for your rightful share.

Our approach is strategic, discreet, and focused on results. We work with leading forensic accountants, issue subpoenas where necessary, and use court powers to obtain full disclosure. You don’t need to navigate this alone—and you shouldn’t have to settle for less than what you’re entitled to.

Melbourne Family Lawyers

You Deserve a Fair Settlement

Dealing with dishonesty in divorce is incredibly stressful. But under Australian family law, you have a right to full and honest disclosure—and legal mechanisms exist to protect you.

If you suspect your former partner is hiding assets or misrepresenting their financial position, don’t delay. Reach out to Melbourne Family Lawyers today for expert advice tailored to your situation.

Need help uncovering hidden assets?

Get in touch with Melbourne Family Lawyers. We’ll help you secure what’s rightfully yours.

Hidden or Undisclosed Assets

Get in Touch Today

Embarking on a divorce journey doesn’t have to be overwhelming. With Melbourne Family Lawyers by your side, you’ll have the support and expertise you need to move forward with confidence.

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