Divorce is stressful under the best circumstances, and financial dishonesty can make it far worse. Both spouses in a Massachusetts divorce are legally required to fully disclose their assets and income. When one spouse tries to hide what they own to gain an unfair advantage, there are serious legal consequences. To learn more, call a Massachusetts divorce attorney directly.
Ways People Hide Assets During Divorce
Asset concealment takes many forms. Common tactics include underreporting income on financial disclosure forms, transferring money or property to a trusted friend or family member with plans to reclaim it after the divorce, overpaying taxes to receive a refund later, and deliberately delaying business contracts or bonuses until the divorce is finalized. Some spouses create fake debts to reduce the appearance of net worth.
Business owners have additional opportunities to obscure assets, such as inflating expenses, paying fictitious employees, or undervaluing their ownership stake. Digital assets like cryptocurrency have also become a newer avenue for concealment that is easy to overlook without the right expertise.
Consequences of Hiding Assets
Hiding assets in a Massachusetts divorce is not just dishonest, it is illegal. Both spouses must sign financial disclosure statements under the penalties of perjury. If a court discovers that one spouse deliberately concealed assets, the consequences can be severe. A judge may award the wronged spouse a greater share of the marital estate, modify support or property division orders, and hold the offending spouse in contempt of court. In serious cases, criminal charges for fraud or perjury are possible. The damage from being caught far outweighs any short-term advantage a spouse might hope to gain.
Signs that Your Spouse Could Be Hiding Assets
You do not need proof to start asking questions. Common warning signs include sudden changes in spending habits, unexplained withdrawals from joint accounts, a business that appears to be performing poorly for no obvious reason, and reluctance to share financial documents. A spouse who insists on handling all finances, refuses to discuss money, or becomes secretive around tax time may also be cause for concern. If something feels off, it is worth investigating.
Actions to Take if You Suspect Hidden Assets in Your Divorce
Start documenting everything you have access to. Pull together bank statements, tax returns, and credit card records. Avoid accessing accounts or devices without authorization, as that can create legal problems of its own. Your attorney can file formal discovery requests, including interrogatories and depositions, to compel your spouse to produce financial information. In complex cases, a forensic accountant can trace missing funds, analyze business records, and identify inconsistencies that might otherwise go unnoticed.
How a Massachusetts Divorce and Family Law Attorney Can Help
If you suspect your spouse is hiding assets, acting quickly is critical. Evidence can disappear, and the longer you wait, the harder it becomes to reconstruct a complete financial picture. At the Law Office of Heather M. Ward, our Massachusetts divorce and family law attorney is experienced in uncovering financial dishonesty and fighting for fair outcomes. We will work with financial experts and use every legal tool available to make sure the full picture comes to light. Contact us today at (617) 903-8955 or visit heatherwardlaw.com to schedule your free consultation.