About the Author
Sarah Walker
Partner, Edwards Family Law

Legal 500 Recommended Lawyer 2026
University of Cambridge
Formerly Clifford Chance & Hughes Fowler Carruthers

Sarah Walker trained as a corporate lawyer at Clifford Chance before moving to family law in 2017. She worked at Hughes Fowler Carruthers under Frances Hughes, where she acted on the landmark case of Potanina v Potanin in the Court of Appeal and Supreme Court – one of the most significant international financial remedy cases in recent years. Sarah advises high-net-worth clients in the UK and abroad on complex financial disputes involving offshore trusts, business interests, and inherited wealth, as well as private law children matters.

Q: Can offshore trusts protect assets in a divorce?

A: Not as effectively as many people assume. English courts have wide powers to look through trust structures where there is evidence that assets have been placed in trust to defeat a spouse’s claims, or where the settlor retains effective control. A trust is not a shield – it is a factor the court will examine carefully.

My background is in commercial law before family law, and it shapes how I approach cases involving complex asset structures.

This article explains how English courts approach offshore trusts and hidden assets in financial remedy proceedings, and what clients on either side of these disputes need to understand before proceedings begin.

How do English courts treat offshore trusts?

The starting point is that assets held in a trust are not automatically excluded from the matrimonial pot. The court will look at the substance of the arrangement rather than its form. Key questions include: who created the trust and when it was created? Who are the beneficiaries? Does the settlor retain any control or benefit? Have assets been moved into the trust recently – particularly after separation or the commencement of proceedings?

What tools does the court have to investigate hidden assets?

The court has a comprehensive toolkit. A party can be ordered to provide a detailed financial disclosure, including documentation from overseas entities. Third-party disclosure orders can compel banks, accountants, and corporate entities to provide records directly to the court. Freezing injunctions can prevent assets from being moved or dissipated during proceedings.

In serious cases, the court can appoint a receiver to take control of assets where there is a real risk they will be removed from the jurisdiction or otherwise made unavailable. This happened in Michael v Michael, where the husband’s refusal to comply with disclosure led the court to take that unusual step.

Forensic accountants are frequently instructed in complex cases to trace assets, analyse financial structures, and provide expert evidence on the value of business interests or the true extent of a party’s wealth.

What happens if hidden assets are discovered after the order is made?

An order can be set aside on grounds of material non-disclosure. The threshold is high – the concealed asset must be of a nature that would have made a substantial difference to the outcome. But where that threshold is met, the court can reopen the case entirely, which means the concealing party faces both a revised order and the costs of the further proceedings.

In MK v SK [2026] EWFC 28, a case that attracted comment from senior practitioners, the court found the husband’s assets ran to several million pounds despite his having claimed near-nil wealth throughout the proceedings. The case drew criticism that the outcome did not adequately reflect the extent of the non-disclosure, and the judgment prompted discussion about whether the courts’ existing powers are being used to their full extent.

What about assets held through companies rather than trusts?

The same principles apply. A spouse who owns a business outright, or who holds shares in a company through which they receive income or benefits, cannot simply present the company as a third-party asset unconnected to the marriage. The court will look at the reality of the situation.

Business valuations in financial remedy proceedings are a specialist area. The methodology used to value a company – whether on an earnings basis, net asset basis, or some combination – can make an enormous difference to the outcome. Expert evidence from a forensic accountant is almost always required in complex cases.

What should you do if you suspect your spouse is hiding assets?

Get advice early. The earlier a solicitor is instructed, the more options are available. Freezing injunctions, for instance, need to be applied for urgently – once assets have been moved, the position becomes significantly harder to remedy. A forensic accountant can also begin tracing work before proceedings formally commence.

Be methodical about what you already know. Bank statements, company accounts, property records, and lifestyle observations can all be relevant. A good family solicitor will help you identify what information you have and what questions need to be asked.

If you are dealing with a divorce involving complex assets, trusts, or concerns about financial disclosure, Edwards Family Law can advise you. Contact us at edwardsfamilylaw.co.uk.

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