If you are going through a separation or divorce and your partner earns part, or all, of their income in cash, the financial side can become particularly fraught. While earning cash isn’t unlawful in itself, hiding it during divorce proceedings or failing to declare it for tax absolutely is. In practice, the absence of a clean paper trail can make disclosure difficult, negotiations tense, and settlements slower.

This article explores why cash-based income creates problems in divorce, how a spouse can gather evidence of actual earnings, and how judges approach financial settlements when one party’s income is unclear or intentionally obscured.

Why cash income creates challenges during divorce

Most couples who separate have to go through the process of financial disclosure; this usually means completing a Form E which is a comprehensive document setting out each person’s income, assets, liabilities and future needs. The problem with cash earners is simple; if they have been paid partly in cash for years, and have declared only a portion of it, their official earnings often look far lower than the lifestyle the family has been living.

A few typical difficulties arise:

  • No reliable paper trail: A builder who takes cash for small weekend jobs, or a mobile hairdresser who accepts cash tips, may have bank statements that tell only half the story. Without invoices, receipts or bookkeeping records, it becomes difficult to pin down how much they truly earn.
  • Incentive to under-declare: Some spouses deliberately understate cash income, hoping to reduce maintenance obligations or retain a larger share of the assets. They may insist their cash work was occasional, or that they never kept records.
  • Variable and unpredictable earnings: Even when there is no dishonesty, cash-paid roles often lead to peaks and troughs in income. A decorator may be rushed off their feet in summer, then quiet in winter. A barber may be cash-rich in December but slow in January. This can make determining a stable figure for maintenance difficult.
  • Difficulty proving spending habits: If someone earns a lot in cash, they may spend a lot in cash too. That means fewer bank transactions and less evidence of actual living costs or financial behaviour.

Types of workers commonly paid in cash

Although cash-in-hand work has reduced over the years, many industries still involve regular cash payments. Each sector brings its own quirks:

  • Tradespeople: Builders, plumbers, electricians, plasterers, gardeners and decorators frequently take side jobs paid in cash. Many are self-employed, which gives them more freedom to manage income without strict oversight.
  • Hairdressers and beauty professionals: Mobile hairdressers, nail technicians, barbers and beauticians often receive cash tips or payment from clients who prefer to avoid card charges.
  • Hospitality and service workers: Waiters, bar staff and café workers may receive tips in cash. Some casual shifts may also be cash-paid, especially in small venues.
  • Retail market traders: Stall vendors at local markets often deal heavily in cash, particularly on busy weekends.
  • Private chauffeurs, taxi drivers and couriers: Some independent drivers are accustomed to receiving part of their income directly in cash from customers.

Even when the proportion of cash income is modest, the absence of documentation can cast doubt over the accuracy of financial disclosure during divorce.

How a spouse can determine true income

When cash earnings are a feature of the marriage, the non-earning or lower-earning spouse often worries that their partner will minimise income to reduce maintenance or avoid sharing assets fairly. Fortunately, the courts do not simply take their word for it, and there are several ways to build a picture of true earnings.

  • Evidence of lifestyle – the courts often look at how the family lived:
  • Holidays taken each year
  • Cars owned or leased
  • Regular spending on children’s activities
  • Household upgrades
  • Ability to save or pay off debts

If the declared income wouldn’t realistically support the lifestyle enjoyed during the marriage, the court may infer there is additional undeclared income.

  • Bank statements – even if cash is used, patterns often emerge:
  • Frequent small cash deposits
  • Transfers to savings or investment accounts
  • Regular card spending inconsistent with stated income

Tracing money in and out of accounts can reveal discrepancies.

  • Business records – if the spouse is self-employed, their business accounts, invoices, booking diaries, online reviews, job calendars, PayPal receipts or even social media posts showing completed jobs can help establish typical turnover.
  • Tax returns – self-assessment forms (SA302s) offer insight into declared income. While not always a complete picture, they can form a baseline.
  • Trading patterns – for example, a market trader who says they only earned £12,000 a year but has a stall at every major weekend event is unlikely to be believed at face value.
  • Messages and communications – text messages or emails arranging cash jobs, quotes, or discussions with clients can be relevant. These don’t have to prove the exact amount earned, but they help build a pattern.
  • Third-party or expert evidence – in some cases, a forensic accountant might be instructed to study bank activity, business patterns and expenditure to estimate true earnings.

What a spouse can do before separation to build a financial picture

Some people may suspect for years that their partner’s declared income doesn’t reflect reality, but don’t know what they can safely and lawfully do.

Here are practical steps that do not involve accessing private accounts or invading privacy:

  • Pay attention to the lifestyle

Note down:

  • How many jobs the partner normally takes
  • Whether weekends are usually busy
  • Typical client volumes during certain seasons
  • Cash spending habits

General observations can later help a solicitor or accountant estimate income patterns.

  • Keeping family financial documents – joint bank statements, mortgage applications, credit card statements and past tax returns often paints a clearer picture than the spouse expects.
  • Gather information about business schedules – if the partner keeps a diary on the kitchen table or uses a visible work calendar, it is lawful to take notes or photographs of information left openly in the home, although you must not break into locked devices or accounts.
  • Retain receipts and evidence of spending – if a partner routinely pays large expenses in cash, noting these down may help demonstrate the implausibility of their alleged income.
  • Keep copies of messages voluntarily shared – screenshots of messages arranging work, confirming cash jobs or booking appointments can later be used to show patterns, provided they were visible to you during the relationship.

Can a judge award higher maintenance without a paper trail?

Judges are not naïve about cash-based work. If a partner declares £18,000 a year but has historically supported a family of four, taken holidays abroad, paid the mortgage and run two cars, the court will almost certainly conclude that the income is understated and make a financial award on this basis.