Family Law Experts
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What happens when a husband lies about his income or assets during divorce proceedings?
The court expects both spouses to provide complete and accurate financial information. If one person hides income, fails to declare assets, or provides misleading information, the court may investigate further and make financial orders based on the evidence available.
This could include an order requiring the higher-earning spouse to make monthly maintenance payments.
At southgate solicitors, our family law solicitors help clients deal with dishonest financial disclosure, hidden assets, and disputes concerning spousal maintenance.
An Illustrative Divorce Case Study
Consider a situation where a husband tells the court that his income has reduced significantly and claims that he cannot afford to support his wife after separation.
However, his bank statements, company accounts, and spending habits suggest that he continues to receive substantial income through his business.
The court may conclude that his financial disclosure is unreliable.
After considering the wife’s reasonable living costs, the husband’s true earning capacity, and the financial circumstances of both parties, the court could order him to make monthly spousal maintenance payments.
This is an illustrative example rather than a report of a specific court case. The outcome of every divorce depends on its individual circumstances.
What Is Financial Disclosure in Divorce?
Financial disclosure is the process through which both spouses provide information about their financial circumstances.
This may include:
In contested financial proceedings, each spouse may be required to complete Form E. The official guidance states that the information provided must represent full, frank, clear, and accurate disclosure of the person’s financial circumstances.
What Happens if a Husband Lies About His Finances?
The consequences will depend on the seriousness of the dishonesty and whether it affected the financial settlement.
The court may:
Section 25 of the Matrimonial Causes Act 1973 allows the court to consider conduct where it would be unfair to disregard it. However, ordinary marital behaviour will not normally affect the financial settlement.
A maintenance order is not usually made simply to punish someone for lying. The court will still consider income, needs, earning capacity, responsibilities, and the overall financial position.
Can the Court Order Monthly Payments?
Yes.
The court can require one former spouse to make regular payments towards the other person’s living costs. This is known as a spousal maintenance or periodical payments order.
A maintenance order may continue:
The amount may also be changed later if there is a significant change in financial circumstances.
Our spousal maintenance solicitors can advise whether maintenance may be appropriate and how payments could be calculated.
How Does the Court Calculate Spousal Maintenance?
There is no single formula for calculating spousal maintenance in England and Wales.
The court may consider:
The court will usually consider whether the person requesting maintenance has a genuine financial need and whether the other spouse has the ability to pay.
Can Business Income Be Hidden During Divorce?
Business income can sometimes be more difficult to assess than an ordinary salary.
A business owner may receive money through:
The court can examine company accounts, tax records, bank statements, and the financial benefits available to the business owner.
Claiming a low salary may not be enough if the wider evidence shows access to greater financial resources.
Our business and divorce solicitors can help where company ownership or business income makes financial disclosure more complicated.
Can a Financial Order Be Changed if Dishonesty Is Discovered Later?
Potentially.
A financial order is intended to provide certainty, but it may sometimes be challenged where serious fraud or material non-disclosure is discovered.
The undisclosed information must usually be significant enough that it could have affected the original outcome.
Anyone who suspects that a former spouse lied during financial proceedings should obtain advice promptly. The available evidence, the seriousness of the non-disclosure, and any delay may affect whether an application can be made.
Why Legal Advice Is Important
Financial dishonesty can make divorce proceedings longer and more difficult.
Legal advice can help you:
At southgate solicitors, we advise clients across England and Wales on divorce, financial disclosure, hidden assets, spousal maintenance, property, pensions, and financial settlements.
For more information or advice on family law matters, readers are encouraged to contact the legal team at southgate solicitors at 02080040065 or hello@southgate.co.uk. It’s important to note that the content of this article is general information and not legal advice, and readers should seek independent expert advice for their specific situations. Our experienced team at southgate solicitors is here to provide expert guidance and support.
Send your details to us and we will call you back to take further information about your matter, or you can click the number below.
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