If you are considering divorce in Massachusetts, and if you also suspect that your spouse is not disclosing their true financial picture, you are not alone. Financial infidelity is when one partner has hidden income, debt, or assets, and it occurs far too often. As disruptive as this is to trust in a marriage, it can also seriously affect the legal and financial outcome of your divorce as well. From concealed business accounts to undisclosed credit card debt, these deceptions can jeopardize your rightful share and make negotiations far more challenging. At Miller Law Group, P.C., we help clients across Massachusetts understand their options and take meaningful steps to protect their financial future when facing financial infidelity in a divorce.
What Does Financial Infidelity Mean for Divorce in Massachusetts?
If one spouse deceives the other about money matters, often by hiding assets, income, or debts, this behavior can have significant consequences for property division, alimony, and even child support. State law requires both parties to fully disclose all assets and liabilities during divorce proceedings to ensure that marital property and debts are divided fairly. Any attempt to obscure income, undervalue property, or leave out debts is a breach of this duty of disclosure.
The courts in Massachusetts require both spouses to submit sworn financial statements at the outset of a divorce and again before trial or settlement. Because of this, if one spouse submits inaccurate or incomplete information, this gives a court the power to impose sanctions or award a more substantial portion of the marital estate to the honest party. This expectation of honesty and transparency safeguards both spouses' financial rights and supports the court’s goal of equitable division, which means fair, not necessarily equal distribution.
Signs That a Spouse May Be Hiding Assets or Income
Whether it's spouse who is resentful, feels financial insecurity, or who misguidedly tries to gain an advantage in the divorce, a spouse who commits financial infidelity will often give away subtle clues. These spouses may become secretive about bank statements, change passwords, or restrict access to accounts in order to conceal assets. Unexplained withdrawals, new debts, or changes in employment income may also be signs that vital financial information is being withheld from you.
If you are unsure whether your spouse is being completely transparent about their finances, it is important to pay close attention to any unusual changes in income deposits or spending patterns. These might include funneling extra income through a business, transferring money to relatives, or opening bank or investment accounts you don't have access to. In some cases, spouses underreport earnings by delaying bonuses or commissions or claim financial setbacks that cannot be substantiated with documentation. The complexity of such schemes ranges from straightforward to highly sophisticated, especially if your spouse has business interests or substantial investments.
If you suspect financial infidelity, watch for warning signs such as:
- Large, unexplained cash withdrawals and inconsistent account activity
- Sudden new debts, credit cards, or “loans” to friends or family members
- Missing or altered tax documents, W-2s, or 1099s
- Unexplained changes in lifestyle that do not match reported income
- Secretive or restrictive behavior around shared financial records
If possible before separation, you'll want to quickly gather your own copies of account statements, pay stubs, and tax returns.
What Are Common Tactics Used to Hide Assets During Massachusetts Divorces?
Financial infidelity during divorce is rarely a one-time event. A person may open accounts in other names, transfer property to trusted friends or relatives, or through business manipulation reduce their personal income for a time. For example, business owners or the self-employed can postpone client payments, inflate business expenses, or create fake debts. These tactics do leave a paper trail, but it takes a thorough investigation to reach them.
Even if a spouse doesn't run their own company, they can still overpay the IRS or creditors, stash gifts or “loans” with third parties, or purchase valuables such as art or collectibles that can easily be understated or overlooked in disclosure forms. Then there are tactics that involve undisclosed offshore accounts, cryptocurrency wallets, hidden real estate, or unreported cash income. Each scheme in turn is designed to unfairly limit what's included in the marital estate.
While some signs of these tactics are possible to pick up on your own, in some cases, forensic accountants may need to help you. As soon as financial infidelity is suspected, legal intervention and careful forensic review become even more crucial to ensure every asset is properly valued and included in the division process.
What Steps Should You Take If You Suspect Financial Infidelity?
If you believe your spouse is hiding assets or income, act quickly and deliberately.
Begin by gathering as much documentation as possible, including:
- Recent statements for all bank, investment, and retirement accounts
- Pay stubs, W-2s, 1099s, and tax returns for the last several years
- Records of major purchases and debts taken out during the marriage
- Business or partnership documents, if applicable
Keep these records in a secure location that your spouse cannot access or alter.
Monitor your accounts for unauthorized withdrawals, unusual transfers, or changes to account access that seem suspicious. Set up email or text alerts when possible to provide immediate warnings of large transactions or account changes. Secure your login credentials for any personal banking, email, or investment platforms, as Massachusetts divorces commonly include an automatic restraining order that limits asset movement, but early action can stop issues before they escalate.
Avoid direct confrontation about your suspicions before speaking with your attorney. Alerting your spouse prematurely may lead them to destroy documents, transfer assets, or further obscure their financial trail. Instead, share your concerns privately with your legal counsel and consider requesting a forensic review to identify inconsistencies or unreported resources.
Work closely with your family law team to develop a plan for discovery, subpoenas, and targeted questions for depositions when needed.
What Are Your Legal Options If You Discover Financial Infidelity in Divorce?
Identifying hidden assets in a Massachusetts divorce relies on multiple legal tools. Attorneys can file formal “discovery” requests, which force both parties to produce bank records, tax returns, business ledgers, and other documentation. If initial disclosures suggest concealment, the court can authorize subpoenas to directly obtain information from third parties like banks or employers.
Forensic accountants add another layer of scrutiny by reviewing transactions, contracts, and financial statements for signs of manipulation. They can identify unusual deposits, trace money transfers, and find gaps that may indicate undisclosed accounts or off-the-books income. Their findings are often used as evidence in court, supporting claims of financial infidelity or proving the actual value of marital property.
Massachusetts courts expect full cooperation during this process. If a spouse destroys, withholds, or falsifies documents, judges can apply adverse inferences, that is, assuming the truth would harm the deceptive party’s position. This encourages honest participation and speeds up the resolution of contested divorce cases.
What Can a Divorce Judge Do If They Uncover Financial Infidelity?
Courts can impose sanctions on the deceptive party, which might include ordering them to pay the innocent spouse’s legal fees, awarding a greater share of property, or “reconstituting” the marital estate to reflect the assets that should have been divided.
If intentional misrepresentation rises to the level of perjury, that is, lying under oath on financial documents, the court has the authority to hold the offending spouse in contempt. This can result in monetary penalties and, in rare but serious cases, incarceration. Massachusetts law allows judges to order the return of transferred assets or require repayment of funds that were purposefully moved to avoid equitable division.
How Financial Infidelity Affects Asset Division in Massachusetts
Factors that affect asset division include:
- The length of the marriage
- Each spouse’s contributions (financial and non-financial)
- Current and future economic circumstances
- Any evidence of fraud or improper conduct
Massachusetts uses the principle of equitable distribution to divide marital assets, which means the court seeks a fair allocation rather than an automatic 50/50 split. When a spouse is found to have engaged in financial deception, the scales tip in favor of the honest spouse. Judges may respond by awarding a higher percentage of assets to the wronged party, recapturing the value of hidden property, or reversing transfers made to third parties intended to cheat the marital estate. Judges consider not just the monetary value but the intent and pattern of the behavior. When you provide clear evidence and proactively address suspicious activity through legal processes, you increase the likelihood that the outcome will reflect the true value of your marital estate.
How Hidden Assets Influence Alimony & Child Support
Financial infidelity can significantly affect alimony and child support calculations in Massachusetts. Both forms of support depend on the accurate reporting of income and financial obligations. Misreporting wages, hiding bonuses, or manipulating business revenue leads to support orders based on incorrect financial information, often to the disadvantage of dependent spouses or children.
To address this issue, judges in Massachusetts frequently use “imputed income”, that is, they assign an income amount the court believes the spouse truly earns, based on evidence of their financial circumstances. This tool prevents dishonest parties from escaping their support obligations through creative accounting or willful underreporting, especially among self-employed individuals or business owners.
Massachusetts law also allows for the modification of existing orders when new information about concealed accounts or income streams comes to light. This ability to adjust support ensures both parties and their children receive fair and accurate financial support, even after a divorce is finalized.
What Happens If You Discover Financial Infidelity After Your Divorce Is Final?
Sometimes hidden assets or income come to light only after a divorce decree has been finalized. In Massachusetts, you may be able to seek a post-judgment modification or move to reopen the asset division if you can show your spouse deliberately concealed information during the original proceedings, especially if it led to an unjust property division or an improper support order.
To proceed, you must present clear documentation of what was hidden and evidence that discovery was not possible earlier with reasonable efforts. Court options may include redistributing assets, adjusting alimony or child support, or requiring the deceitful spouse to pay legal fees. Swift action and comprehensive documentation are key. Don't wait to speak with a divorce attorney about your concerns or findings of financial infidelity.
Help to Address Financial Infidelity & Divorce in Massachusetts
Divorce becomes even more complex when trust has been broken by financial secrecy. Support and clarity are available statewide. At Miller Law Group, P.C., our team-driven approach ensures that your case receives personalized attention informed by knowledge of local courts and collaborative strategizing each week. We work closely with forensic professionals and leverage our in-depth familiarity with Massachusetts law to help address the impact of financial infidelity on divorce settlements.
When you work with Miller Law Group, P.C., you benefit from a team dedicated to your success and ready to engage the latest tools and strategies for uncovering hidden assets and securing your financial future. If you are concerned about financial infidelity in your Massachusetts divorce, taking informed, swift action will help protect your interests and peace of mind.
Reach out to our legal team at Miller Law Group, P.C. by calling (888) 874-2142 to discuss your situation and learn how we can support you through every step of the process.