Business Tricks in Divorce: 10 Sneaky Tactics to Watch Out For and Outsmart
📌 Legal Disclaimer: This episode and blog is for general information only and is not legal advice. Please seek your own legal support for your specific circumstances.
Divorce is rarely simple but when a business is involved, things can get very messy, very fast. If you’re divorcing a business owner, or you've run a business together with your ex, this episode is one you can’t afford to miss.
In this week's podcast, Mum and I uncover the top 10 tricks business owners use during divorce to manipulate the property settlement and what you can do to stay one step ahead. From undervaluing businesses to hiding income and manipulating shareholder structures, we walk you through the red flags to watch for, the court’s perspective, and what strategies you can use to protect yourself.
Whether you're heading into mediation, already deep in negotiations, or simply trying to make sense of financial disclosure, this episode will help you feel more confident and informed.
Why This Episode Matters
If you're feeling overwhelmed by how a business fits into your divorce, you're not alone. These are complex issues—especially when your ex is intentionally making things harder.
Some of the sneaky tactics we explore include:
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Making the business look worthless
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Setting up a clone company to hide profits
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Appointing extra shareholders to dilute your stake
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Avoiding business valuations to delay settlement
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Hiding cash income and cooking the books
And it doesn’t stop there. We also cover how these business moves can affect child support, superannuation (especially self-managed funds), and even lead to financial abuse through sudden job loss or unpaid wages.
Listen to This Episode If...
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You’re divorcing someone who owns or runs a business.
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You’re in a family business with your ex and it's getting complicated.
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You suspect your ex is hiding assets or reducing the business value.
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You’re struggling with financial disclosure and valuation issues.
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You’re preparing for mediation or court and want to be strategic.
What You’ll Learn
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How courts deal with sudden changes in business value
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Why valuations matter more than full disclosure
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When to push for spousal maintenance or raise financial abuse
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How tax debts can be used as weapons—and how courts respond
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Steps to uncover hidden business dealings or secret super funds
Mum also shares key cases like Shinohara & Shinohara and Shamon & Shamon, which show how courts are starting to push back against these tactics—often rewarding the person who’s done the right thing with a bigger share of the property pool.
Key Takeaways from the Episode
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Discovery matters more than disclosure.
Stop waiting for full transparency and start investigating what you can prove. -
Get a business valuation—even if disclosure is delayed.
Judges want numbers, not just complaints. A valuer can help move your case forward. -
Don’t ignore superannuation games.
SMSFs can be used to hide money—act early to protect your share. -
Understand your rights if you’re sacked or cut off financially.
It may be classified as financial abuse—and spousal maintenance could apply. -
Going to court might actually be the fastest way forward.
Especially if delays are costing you more in hidden losses than legal fees.
If your ex is playing dirty with the business, know this: the courts are aware of these tricks—and there are ways to fight back. It’s not easy, and yes, it’s extra work—but in the end, that effort can make a significant difference in your outcome.
Need more help? Listen to the full episode or check out our related episodes on disclosure, business valuation, and tax issues in divorce.
Resources
Central Practice Directions
https://www.fcfcoa.gov.au/fl/pd/fam-cpd
Free Disclosure Checklist
https://www.thedivorcecourse.com.au/disclosurechecklist
Shinohara & Shinohara [2025] FedCFamC1A 126 (23 July 2025)
https://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/FedCFamC1A/2025/126.html
Shamon & Shamon [2025] FedCFamC1A 150 (8 September 2025)
https://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/FedCFamC1A/2025/150.html
Episode Links
Your Business and Divorce (old episode)
https://open.spotify.com/episode/0CwIeW1ZHTphzvhPdlq2Bf?si=JCtAHG7NTom5YSceqdSJ2Q
Weapons of Tax Destruction
https://open.spotify.com/episode/1Bvc2JFmgcLMpIZLIXEwVR?si=KT3UdjZRQAWjDRp3EMXhiw
DIY Disclosure
https://open.spotify.com/episode/49yOIB1GLDmXgeZCXkfyJS?si=nhgq3QQlQge-CSYLkMGKBg
🚨 Support Services:
- 1800 RESPECT (Family Violence Support – Australia)
- Lifeline: 13 11 14 (Crisis Support – Australia)
📌 Legal Disclaimer: This episode is for general information only and is not legal advice. Please seek your own legal support for your specific circumstances.
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