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Can You Sue Your Ex for Lying About Assets After the Divorce Is Final?
In high-asset divorces, honesty is more than a moral principle; it is a legal duty. Wisconsin courts require both spouses to provide complete financial disclosures during a divorce. This includes listing all marital and individual assets, even those held in trusts, business entities, or foreign accounts.
If one spouse fails to do so, and the omission is not discovered until after the divorce is finalized, the law provides a potential path for correction. That path, however, is narrow, and it demands strong evidence and decisive legal action.
Post-divorce discovery of hidden assets is particularly common in high-net-worth cases. These often involve complex financial structures such as privately held companies, delayed compensation plans, or multi-layered investment portfolios. In such cases, one spouse may intentionally misrepresent the existence or value of an asset, leaving the other with an unfair settlement and no clear understanding of what was withheld until long after the papers are signed. Our Wisconsin divorce attorneys are here to make sure that does not happen to you.
Legal Foundations for Reopening a Divorce in Wisconsin
Wisconsin law allows for the reopening of a divorce judgment under certain limited circumstances. The most relevant authority comes from Wisconsin Statute section 806.07. Under subsections (1)(c) and (d), a court may grant relief from a final judgment when there is evidence of fraud, misrepresentation, or newly discovered evidence that could not have been found with reasonable diligence before the judgment was entered. In the context of divorce, that typically means discovering an asset that was intentionally hidden during the proceedings and that materially affected the outcome of the property division.
Section 767.127 of the Wisconsin Statutes also plays a central role. This section covers the requirement of financial disclosure in divorce and legal separation proceedings. A violation of this requirement, such as by leaving out a valuable account, trust, or income source, may be grounds for the court to consider reopening the case, especially when the undisclosed information would have substantially altered the original division.
The burden of proof is high, however. A party seeking to reopen a divorce decree must show that the asset was not only undisclosed, but that its concealment made the original division inequitable. The court will also ask whether the information could reasonably have been discovered during the original litigation through standard diligence.
What You Must Show to Reopen a Divorce Case Due to Hidden Assets
To succeed in this type of case, you must show that the omitted asset was significant and that your ex-spouse had both the knowledge and the opportunity to disclose it. You must also demonstrate that you could not have reasonably found this information on your own during the divorce process. Courts are not interested in penalizing honest mistakes or minor oversights. They focus on intentional concealment or clear misrepresentation that deprived one party of a fair share of the marital estate.
Timing also matters. Wisconsin law generally imposes a one-year deadline to file a motion to reopen based on fraud. However, there is some flexibility in cases where the fraud could not reasonably have been discovered within that time frame. Still, the longer the delay, the harder it becomes to convince the court that the motion is being brought in good faith.
When a spouse learns that their ex has benefited from such assets post-divorce, especially if they were unknown during the original proceedings, it is essential to act quickly. An attorney can begin by gathering documentation, issuing subpoenas, and, in some cases, hiring forensic accountants to trace financial activity and connect the dots between what was claimed and what now appears to exist.
How Hidden Assets Are Typically Discovered
In many cases, it is not a single event that reveals hidden assets but a slow accumulation of red flags. Former spouses may notice inconsistencies in tax returns, sudden increases in the ex-spouse’s spending habits, or documents related to trusts or accounts that were never mentioned during the divorce. Other times, a tip from a family member or financial advisor may point to the existence of undeclared property or income.
High-net-worth individuals often rely on sophisticated financial arrangements to manage wealth. These include offshore accounts, limited liability companies, deferred compensation plans, and irrevocable trusts. Each of these structures can be used legally, but they also create opportunities for nondisclosure if not monitored and disclosed properly during litigation.
Legal Solutions and Potential Outcomes for Hidden Assets
If the court finds that a spouse intentionally concealed assets and that the omission harmed the other party, it has broad authority to correct the inequity. The judge may reopen the property division and adjust it to reflect the actual value of the estate. In some cases, the entire value of the hidden asset may be awarded to the innocent spouse as a punitive measure. The court may also order the offending party to pay the other’s attorney’s fees and costs associated with uncovering the deception.
Further consequences may include sanctions or findings of contempt, especially if the court believes that perjury or willful disobedience occurred. In more extreme cases, financial fraud discovered post-divorce could even lead to referral for criminal investigation.
What to Do if You Think Your Spouse Hid Assets in Your Divorce
The moment you suspect your ex may have hidden assets, you should speak with a family law attorney experienced in complex financial litigation. Waiting too long can compromise your legal position. An attorney can help evaluate whether your claim meets the legal standard for fraud or misrepresentation, what evidence is necessary, and how to begin the process of filing a motion to reopen.
Gathering relevant documents is a critical first step. This might include bank statements, tax filings, business records, or even communication between your ex-spouse and their financial advisors. From there, legal counsel can assist with issuing subpoenas, hiring forensic experts, and preparing a motion supported by credible, admissible evidence.
When wealth is layered across entities, accounts, and jurisdictions, it becomes easier to obscure and harder to expose. But Wisconsin courts do not reward financial sleight of hand. They expect full and candid disclosure. If one spouse plays by the rules while the other hides the truth, the court will seek to restore balance, but only if asked to do so with the proper legal and factual support.
Work With a Milwaukee High Net Worth Divorce Attorney
High-asset divorces are often finalized with a sense of relief and exhaustion. Few people want to revisit the process. But in cases where injustice comes to light after judgment, you may still have options and strong reasons to pursue them.
Our Milwaukee, WI firm has the resources, experience, and strategic thinking to take action quickly and decisively. Whether you suspect business fraud, trust mismanagement, or outright deception, we will investigate, advise, and fight to correct the injustice.
Call Gimbel, Reilly, Guerin & Brown, LLP’s Milwaukee, WI divorce lawyers at 414-271-1440 to schedule your free consultation.
