Financial remedy proceedings in the UK rely on one key principle: both parties must provide full and honest financial disclosure.

This means sharing details of:

• income
• property
• savings and investments
• property or assets abroad
• business interests
• trusts or assets held through other structures

When that information is incomplete or misleading, it is known as non-disclosure — and it can significantly affect the outcome of a case.

This issue is increasingly common in financial remedy proceedings in England & Wales, particularly where assets are held through businesses, trusts or complex financial arrangements.

A recent High Court decision, MK v SK [2026] EWFC 28, highlights exactly how.

What Is Non-Disclosure in Divorce?

Non-disclosure occurs where one party does not fully reveal their financial position.

This can include:

• failing to disclose assets
• providing incomplete or unclear information
• using complex structures to obscure ownership
• presenting finances in a way that makes them difficult to assess

In some cases, it may be deliberate.

In others, it arises from informal arrangements or a lack of clear documentation.

Either way, it creates a challenge for the court.

What Happened in MK v SK?

In MK v SK, the court was dealing with a long marriage involving:

• significant historic wealth
• business interests held through corporate structures
• trust arrangements
• and a lifestyle supported through complex financial arrangements

The husband maintained that his wealth was limited.

The wife argued that he had access to substantially greater resources.

However, the financial picture presented to the court was unclear. There were:

• gaps in documentation
• no reliable valuation of the business
• limited transparency around trust arrangements
• informal financial practices, including undocumented loans

The judge ultimately found that the husband had not provided full financial disclosure, and was likely to have access to assets that had not been properly revealed.

How Do Courts Deal With Hidden Assets in Divorce?

Even where non-disclosure is identified, the court must still reach a decision.

In this case, without clear evidence of the full extent of wealth, the court could not reliably apply a straightforward division of assets.

Instead, it focused on what could be established with confidence — the wife’s financial needs.

The outcome included:

• the wife retaining the former matrimonial home
• a lump sum to meet her income needs
• interim maintenance
• provision for liabilities

Where the financial picture is unclear, the court may prioritise a fair and practical outcome based on need.

Can You Be Penalised for Non-Disclosure in Divorce?

Yes — but the impact is not always straightforward.

The court can:

• draw adverse inferences
• question credibility
• adjust the outcome where appropriate

However, as this case demonstrates, where the court cannot clearly establish the extent of undisclosed wealth, it may still need to proceed based on the available evidence.

Zharna Sutaria, Head of Family Law at Vyman Solicitors, explains:

“Where there is uncertainty around the financial position, the court is often required to make decisions based on incomplete information.

In practice, this can mean that the outcome does not fully reflect the underlying reality of the parties’ wealth.”

What Evidence Is Needed to Prove Hidden Assets?

Proving non-disclosure can be complex, particularly where assets are held through layered structures or informal arrangements.

Relevant evidence may include:

• financial records and transaction histories
• inconsistencies in disclosure
• business documentation
• trust structures and ownership links
• patterns of expenditure

In some cases, the absence of documentation can itself raise concerns.

Why Non-Disclosure Creates Risk for Both Parties

Non-disclosure is often assumed to benefit the person withholding information.

In reality, it creates risk for both sides.

For the person not disclosing:

• credibility may be damaged
• the court may draw adverse conclusions
• the outcome may be less favourable

For the other party:

• it may be difficult to establish the full extent of wealth
• key assets may not be properly accounted for
• the final outcome may fall short of expectations

Zharna adds:

“These cases can become less about precision and more about practicality.

Where the court cannot establish the full picture, it will focus on achieving a fair and workable outcome based on what is known.”

What Can You Do If You Suspect Hidden Assets in Divorce?

The most important step is early financial clarity.

This involves:

• understanding how assets are held and structured
• identifying gaps or inconsistencies in disclosure
• assessing where further information may be required
• forming a clear strategy before positions become entrenched

A structured early assessment can help:

• identify risks at the outset
• strengthen your position in negotiations
• reduce unnecessary escalation
• ensure decisions are made with a clear understanding of the financial position

MK v SK highlights a key reality of financial remedy proceedings: where financial clarity is lacking, outcomes may be shaped by what can be proven – not necessarily what exists

For clients, this reinforces the importance of understanding the financial position early and approaching matters with a clear and structured strategy.

If you are concerned about financial disclosure or would like to understand your position at an early stage, our Family Law team can provide a structured and considered assessment to help guide next steps.

Frequently Asked Questions About Hidden Assets in Divorce

What is financial disclosure in divorce?

Financial disclosure is the process where both parties provide full details of their income, assets, liabilities and financial interests so that a fair financial settlement can be reached.

What happens if someone hides assets in divorce?

The court can draw adverse inferences, adjust the financial award, or order further investigation if assets are suspected to be hidden.

Can a divorce settlement be challenged later if assets were hidden?

Yes. If non-disclosure is discovered after a settlement, it may be possible to reopen the case.

About Vyman Solicitors

Located in North West London, Vyman Solicitors provides a comprehensive range of legal services, including Corporate & Commercial Property Law, Litigation, Residential and Conveyancing Law, Family Law, Private Client and Immigration. Known for its commitment to personalised client support and legal excellence, Vyman is a trusted partner for businesses and individuals alike.

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Disclaimer: This article is for informational purposes only and does not constitute legal advice.