Finding matrimonial wealth is as challenging as dividing it, as family disputes draw practitioners into asset tracing, offshore structures and insolvency
Writing in NLJ this week, Sarah Everington, family associate at Penningtons Manches Cooper, urges scrutiny of hidden assets and competing creditor claims.
Warning signs include corporate restructuring around separation, unexplained debts, offshore arrangements and lifestyles inconsistent with declared income. Prompt proceedings, disclosure applications and freezing injunctions can help preserve assets, while forensic accountants can uncover patterns in ordinary financial records.
Courts may draw adverse inferences from non-disclosure and look behind ownership. Everington examines litigation involving a trust holding approximately £38m in assets, which was found to be a sham.
Bankruptcy can also derail implementation of financial remedy orders, placing assets within creditors’ reach. Practitioners must assess insolvency risks throughout proceedings and plan enforcement.
As Everington observes, ‘obtaining the order is merely the beginning’. Ensuring assets remain available is crucial.
