When it comes to divorce in Massachusetts, everything related to finances must be fully disclosed. This includes every single asset, purchased together or otherwise, as well as all accumulated debts. Each spouse is instructed to report known findings through a financial affidavit. It is against the law to purposely hide, understate, or overstate assets, as well as any marital property, debt, income, or expense. In extreme cases, this can potentially lead to the withholding party being sentenced to serve time in jail. If you suspect your spouse of attempting to hide assets, it’s imperative to retain a divorce lawyer who has significant experience discovering hidden or undervalued assets. A top-notch Massachusetts divorce lawyer will know the tricks used to hide assets and work with forensic accountants, investigators, and other experts to uncover these attempts to mislead the system. Some common methods of hiding assets are outlined below. Overpaying the IRS Spouses who anticipate that their divorces will be finalized during the next tax season have been caught intentionally overpaying the IRS. If undetected, this gives them a way to shelter money and provide them with a head start on the following year’s taxes once the divorce becomes final. Selling Assets to Friends Be wary of transactions made between a spouse and a close friend or confidante. This is a tactic commonly used to hide assets whereby an arrangement is made to return or ‘sell back’ assets following divorce finalization. Delaying Financial Gains It is not uncommon for a spouse expecting
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