What Can You Do If Your Spouse Is Hiding Assets?

Signs your spouse may be hiding assets

Spotting the signs early can change the outcome. Watch for:

• large cash withdrawals or new bank accounts
• income going to accounts you do not recognise
• business income suddenly reported lower, or claims that assets have lost value
• property transferred to relatives or friends
• new loans taken against jointly owned assets
• unusually high expenses run through their business
• sudden secrecy about money, or your access to joint accounts being removed

How the court can force disclosure

Under Order 24 of the Rules of Court 2012, the court can order discovery and inspection. Your spouse must then produce bank statements, property records, company accounts, tax returns and other financial documents.

Your lawyer can also apply for interrogatories: written questions your spouse must answer under oath.

Ignoring a discovery order can lead to contempt of court proceedings, with penalties that include fines and prison.

Can the court freeze assets?

Yes. If there is a real risk your spouse will get rid of assets before the divorce ends, the court can grant a Mareva injunction. This freezing order stops them selling, transferring or dealing with named assets in Malaysia and, in some cases, overseas.

You must show a real risk that assets will be moved or spent, and that your own claim has a sound basis. These applications are often urgent. The order can cover bank accounts, property, vehicles and business assets.

Section 102 of Act 164 also lets the court set aside a disposal of property made in the last three years to defeat your rights, or stop one that is planned.

How a forensic accountant helps

A forensic accountant examines financial records to trace hidden money. They analyse bank transactions, spot wealth that cannot be explained and uncover patterns of concealment. They are often needed where business interests or complex finances are involved.

Their report can go before the court as evidence. Courts give it real weight, especially when one spouse has not cooperated with financial disclosure.

If hidden assets turn up after the divorce

You may still have options. The court can reopen the matrimonial property division if one spouse failed to disclose important assets.

You will need evidence of the non-disclosure. The court asks whether the hidden assets would have changed the original division, and if so, can adjust its orders.

What to do now

• Do not delay, and do not confront your spouse. That may give them time to hide more.
• Keep copies of financial documents you can lawfully access.
• Note details of joint accounts, property, investments and business interests.
• Write down any unusual money behaviour you have seen, with dates.

Looking to engage a divorce lawyer? If you think your spouse is hiding accounts or moving assets before the divorce, request independent lawyer contact via WhatsApp: Request Lawyer Contact. For general information, use our guides and tools.