HIDDEN ASSETS IN A DIVORCE IN CYPRUS: WHAT CAN A SPOUSE DO?

When a marriage breaks down, it may be difficult to establish the full extent of each spouse’s property. Questions can arise about assets held in another person’s name, property transferred after separation, or interests that have not been disclosed.

Cyprus law provides a process through which a spouse may ask the Court to order disclosure of relevant property. This process forms part of a separate claim concerning a spouse’s contribution to the increase in the other spouse’s property.

Does separation mean that all property is divided equally?

Not automatically. Under the Regulation of Property Relations between Spouses Law of 1991, a spouse may bring a claim where the other spouse’s property has increased during the marriage and the claimant contributed in any way to that increase. The contribution is presumed to be one third of the increase, unless a greater or smaller contribution is proved.

The law recognises that contribution may take different forms, including caring for the family home and family members. The claim concerns the increase in property attributable to the spouse’s contribution; it does not automatically give either spouse half of every asset.

Can the Court require my spouse to disclose their assets?

Yes. On the application of either party, the Court may order a spouse to file a sworn statement describing the property in which they had a direct or indirect interest at the date of separation, or at another relevant date specified by the Court.

The Court may also examine whether the information provided is accurate ( P.S., Appeal No. 25/2021, dated 26 January 2023, the importance of identifying the relevant property at the time of separation).

What if an asset has been transferred or disposed of?

A transfer does not necessarily end the Court’s inquiry. On application, the spouse may be required to provide a further sworn statement with full and convincing evidence about the disposal. Where necessary, the Court may also direct the spouse to provide information concerning the movement, transfer or return of the property.

What if the information is incomplete or false?

The Court may require the spouse to attend for examination as a witness about the statements or other evidence concerning their financial position. Providing false, inaccurate or incomplete information may have legal consequences. Failure to comply with a disclosure order may amount to contempt of Court.

Can property be protected while the claim is pending?

In appropriate cases, the Court may make an order preventing a spouse from disposing of, transferring or charging property. In urgent cases, an interim order may be sought. The Court may also have power to set aside a transfer or other dealing made to defeat the disclosure provisions or a Court order.

These measures require an application and depend on the circumstances and evidence before the Court. They should not be treated as automatic.

What should I do if I am concerned about hidden assets?

Keep any available information about the property, financial interests or transfers that may be relevant. Documents, correspondence and details of dates can help clarify what information should be placed before the Court.

A spouse who suspects that property has been concealed or transferred should obtain advice about the available disclosure and protective measures as part of the property claim.

Phoebus, Christos Clerides & Associates LLC advises on divorce, matrimonial property claims and related family law proceedings. Contact our family law team to discuss your circumstances.