The Consequences of Failing to Provide Financial Disclosure in Massachusetts Divorce Proceedings
Divorce can feel overwhelming, both emotionally and practically. One of the most important, yet often overlooked responsibilities during this process is providing complete and accurate financial disclosure.
Failing to do so in Massachusetts can lead to serious consequences that ripple through every part of a divorce settlement, from property division to child support and alimony. Let’s break it down.
What is Financial Disclosure in Divorce?
Financial disclosure involves sharing a full and accurate account of all your assets, debts, income, and expenses with the court and your spouse. In Massachusetts, this is not just a courtesy—it’s a legal requirement.
You’ll typically need to provide:
- Tax returns for several years
- W-2s, 1099s, and pay stubs
- Bank account statements (checking, savings, and investments)
- Retirement account summaries
- Credit card statements
- Mortgage documents and loan applications
- Real estate deeds
- Insurance policy details
- Business valuations (if you own a business)
These documents allow the court to make fair decisions about property division, alimony, and child support. Without them, the process can stall—or worse, you could face severe penalties.
Legal Requirements in Massachusetts
Massachusetts courts take financial disclosure seriously. Under Massachusetts General Laws Chapter 208, Section 34, and Rule 411 of the Massachusetts Rules of Domestic Relations Procedure, both parties must complete and exchange a financial statement. This document serves as the foundation for the court’s decisions regarding assets and liabilities.
Failing to meet this requirement is not just a procedural misstep—it’s a violation of court rules, and courts have little patience for dishonesty or withholding information.
The Risks of Not Disclosing Financial Information
Neglecting to provide accurate financial information—or worse, deliberately hiding it—can have far-reaching consequences. Here’s what might happen:
1. Sanctions and Fines.
Courts can impose monetary fines or sanctions on the non-disclosing party. These penalties can add up quickly, especially if they’re coupled with legal fees for the other side.
2. Unequal Property Division.
Judges may compensate for missing information by awarding more assets to the other spouse. If you fail to disclose a bank account or property, the court might assume its value and offset it by assigning more property to your spouse.
3. Reduced Alimony or Support Adjustments.
Failing to disclose your true income can lead to decisions based on assumptions—decisions that may not work in your favor. A judge could reduce the alimony or support you receive (or increase the amount you’re required to pay) as a penalty.
4. Damaged Credibility.
Divorce cases often hinge on trust. If a judge questions your honesty about finances, it could affect other parts of your case like child custody arrangements. Judges prioritize the best interests of children, and dishonesty about finances could cast doubt on your parenting judgment.
5. Criminal Charges.
In the most serious cases, failing to disclose financial information can lead to accusations of perjury or fraud. These criminal charges carry heavy fines and even the possibility of jail time.
6. Striking of Pleadings.
A judge can strike your pleadings if you don’t comply with disclosure requirements. This means you could lose the ability to present your side of the story, leaving the court to rule in favor of the other party.
7. Adverse Inferences.
Judges can also draw negative conclusions about your financial situation. For example, if you fail to disclose an account, the court may assume it contains substantial assets.
8. Invalidation of Agreements.
Even after the divorce is finalized, an undisclosed asset can come back to haunt you. Agreements based on incomplete information can be reopened and set aside, leading to more court time and legal expenses.
How Reade Law Firm Can Help With Your Divorce
Divorce can be overwhelming, especially when dealing with financial complexities. Reade Law Firm is here to guide you through every step, ensuring your rights are protected. Here’s how we can assist:
- Document Collection: We’ll help gather and organize essential financial records.
- Accurate Reporting: We ensure financial statements are thorough and error-free.
- Negotiation Support: Let us handle discussions with your spouse or their attorney.
- Court Representation: If disputes arise, we’ll fight for a fair resolution.
If you’re facing divorce in Massachusetts, trust us to provide the support and expertise you need. Contact Reade Law Firm at (978) 767-8383 or visit our website to start building your path forward.