Mediation exists for people who can’t sit down and work out the financial split themselves. Courts exist for people who can work out the financial split even when facilitated to do so. All of these processes follow the same basis steps
- identify all assets and liabilities held by both parties.
- then identify the needs of both parties that will enable them to get on with life independently of each other.
- it’s a general principle that under point 2 both parties should minimise outgoings and maximise income (which isn’t just salary).
- Split the assets to ensure both parties needs are met
- if there aren’t enough assets then explore other options which may inhibit a clean break.
In relation to the question of whether someone can try to hide income or assets, the answer is yes they can try. Whether they are successful or not is another matter. Being self employed makes it easier to suppress earnings and because that will be a tax matter is probably long standing. The additional income is often taken in the form of dividends. Tax be Company accounts will be a starting point to establish this.
hidden assets can be uncovered though company and personal bank accounts. Regular or one off transfers out are a clue. As is a disparity between income and outgoings. If some has a regular surplus it has to go somewhere.
If you are concerned about him hiding stuff, then you will need to ask for disclosure of accounts and statements. He will either do this or not do it. That’s were your lawyer comes in. They can formally request this as part of process that could end up in court.
It might or might not be possible for you and your lawyer to establish he is hiding money or surpressing income. Sometimes you need an expert, a forensic accountant to do it. Forensic accountants are expensive and won’t be covered by legal aid.
There are some realities here that might be difficult to overcome. Self employed people manage their tax affairs tightly. If HMRC can’t find income neither will you. Assets can be hidden in companies as well but these will be in the company accounts. The company is a marital asset and you can ask for half but you need it valued. your lawyer can out the onus on him to do that.
At the end of the day you can have direct talks with him. Then take this back to your lawyer for advice. If you have concerns about hidden assets and income you are going to have to formulate or explain why. It helps if you know how material that will be. Because seeking it out is expensive and it might not be worth it.