One of the biggest mistakes you can make before or during a separation is transferring your assets to avoid your other half getting their hands on them.
Transfers of assets to family members or third parties before, or during, the process could be seen as a way to reduce the pot available for division in any financial settlement or court order.
Courts need marital/civil partnership property to be preserved until it reaches a final decision that is fair to both sides.
Lindsey Canning, head of family at Wake Smith looks at the issue.
“From a recent online poll, around a quarter of respondents thought you can do this, while others said it depended on who you were transferring it to. They were incorrect.
“You have a duty to the court to give a full, frank and clear disclosure of all your financial and other relevant circumstances.
“If you are intending on transferring an asset, such as a house, to someone else to deprive your spouse/civil partner of a claim on the asset, then the court has the ability to overturn the transfer and return the property into the marital/civil partnership estate.
“This is also the case where an asset has been sold to someone at an undervalue.
“The court will use its discretion and take into consideration the disposal, and may redress the loss by giving the other spouse/civil partner more of the assets in compensation for the disposal.
“Although tempting, to try and hide or dispose of assets before you consider separating, the court has the power to overturn such transfers and disposals made several years before the divorce/civil partnership proceedings themselves and, it can damage your credibility if there needs to be a final contested hearing.”
For further advice on all separation, divorce and family law matters contact Lindsey Canning at [email protected]
