Divorce is an emotional and financial process. For many separating spouses, a major concern is whether the other party is being honest about their finances. In some cases, one spouse may try to hide income, property, or other assets to avoid a fair division.
So, what happens if you suspect your spouse is hiding assets during a divorce? And what legal protections are in place? Here’s what you need to know.
- Financial Disclosure Is Not Optional
Under Ontario family law, full and frank financial disclosure is a fundamental obligation. Whether you’re negotiating a separation agreement, attending mediation, or going to court, both parties are legally required to disclose:
- All sources of income
- Bank accounts and investments
- Pensions and RRSPs
- Real estate holdings
- Debts and liabilities
- Business interests and more
This disclosure forms the basis for dividing net family property and determines important issues like equalization payments, spousal support, and child support.
- Common Ways Assets Are Hidden
Some of the ways spouses try to conceal assets include:
- Transferring property to a friend or relative
- Undervaluing business interests
- Failing to disclose offshore or joint accounts
- Underreporting income (especially for self-employed individuals)
- Delaying bonuses or commissions until after the separation
If any of these red flags seem familiar, it’s worth taking a closer look.
- What Can You Do If You Suspect Hidden Assets?
If you believe your spouse is not being honest, there are several legal tools available:
- Request Further Disclosure: Your lawyer can demand additional documentation or clarification.
- Court Orders for Disclosure: A judge can order one party to produce specific financial records, including tax returns, bank statements, or business ledgers.
- Forensic Accounting: In complex cases, a forensic accountant can trace hidden income or irregular transactions.
- Questioning (Discovery): During litigation, your lawyer can question your spouse under oath about their finances.
If the court finds that your spouse has willfully hidden assets, the judge may impose financial penalties or award a larger share of property to you as compensation.
- Consequences of Hiding Assets
Trying to hide assets in a divorce proceeding is a serious matter. If discovered, it can result in:
- A reopening of the financial settlement
- Costs orders (forcing the dishonest party to pay legal fees)
- Adjustments to equalization payments
- Damage to credibility, which can also impact parenting disputes
Ontario courts take a very strict view of non-disclosure.
- Protect Yourself Early
If you’re going through a separation, protect yourself by:
- Gathering all financial documents early (before or just after separation)
- Keeping records of major financial transactions
- Speaking with a family lawyer before signing any agreement
A proactive approach helps ensure a fair division and reduces the risk of financial manipulation.
Facing a Divorce? Don’t Let Hidden Assets Catch You Off Guard.
At Delaney’s Law Firm, we have experience uncovering and addressing hidden assets in separation and divorce cases. We work with financial experts where needed and take strong legal steps to ensure full financial transparency.
Contact us today for a confidential consultation to protect your financial rights.
The content on this post is for information purposes only and is not legal advice, which cannot be given without knowing the facts of a specific situation. You should never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. The use of the website does not establish a solicitor and client relationship.