Hiding assets in divorce a common concern of many family law clients.
It is not unusual for people to have been married or in a de facto relationship for many years , and for one person to have all the information about money and finances of the relationship and the other to trust that the finances are being taken care of.
It’s only at the time of divorce or separation that the trusting person loses confidence and starts to question the financial dealings of their their former partner. When parties separate there is a legal duty that both parties exchange financial information to each other in a comprehensive and transparent way and that as their financial position changes, they continue to update their ex spouse of their financial situation.
So what happens when your ex hide’s assets in divorce or separation ?
The recent case of Lynch v Kershaw & Ors [2015] is such a case where the husband, Mr Kershaw, after eight months of separation from his wife of 14 years, transferred the amount of $100,000 to his new wife Ms Kershaw. This money was used to buy a property, which was later sold to buy another property in the name of Ms Kershaw solely.
The Judge said that
“Almost immediately after separation the husband with the assistance of Ms Kershaw embarked on a deliberate scheme to remove money from the businesses and acquire properties which he hoped could be put beyond the reach of the wife in the property settlement proceedings.”
The Judge in this case, made a finding that the property owned by Ms Kershaw was held under a resulting trust for Mr Kershaw and therefore should be included in the pool of assets.
The above information is general information and does not constitute legal advice. For more information contact us.