Montana does not leave financial honesty in a divorce to the honor system. Each spouse must serve sworn declarations listing all assets and liabilities, and the statutes give the court specific remedies when a spouse leaves something out. If a spouse wastes marital property instead of hiding it, the court must consider that "dissipation of value" when it divides the estate (MCA § 40-4-202(1)). This page is part of our Montana Divorce Guide.
The Duty to Disclose
Two declarations are required, each "executed under penalty of perjury":
- Preliminary declaration of disclosure. Served within 60 days of service of the petition. It must identify all assets in which the spouse has or may have an interest and all liabilities for which the spouse is or may be liable, "regardless of the characterization of an asset or liability," with an income and expense declaration (MCA § 40-4-252(1), (3), and (5)).
- Final declaration of disclosure. Served before or at the time the spouses enter into an agreement resolving property or support, or no later than 45 days before the first assigned trial date. It must include all material facts about the characterization and valuation of assets, the amounts of obligations, and each spouse's earnings and expenses (MCA § 40-4-253(1) and (2)).
Absent good cause, the court may not enter a judgment on the spouses' property rights unless each has executed and served the final declaration and a current income and expense declaration (MCA § 40-4-254). Our page on financial disclosure in a Montana divorce covers the process and the limited ways timing can be changed by stipulation.
The duty covers property you consider yours alone. You list it and state your position. See separate vs. marital property.
What the Court Can Do About Nondisclosure
| Problem | Remedy in the statute | MCA |
|---|---|---|
| An asset or debt is left off the final declaration | Presumed grounds to award the undisclosed asset to the other spouse, or the undisclosed liability to the spouse who omitted it, without regard to the equitable division | § 40-4-253(4) |
| A declaration is missing or lacks detail | Request to comply, then a motion to compel or a motion to bar the noncomplying spouse from presenting evidence on the issues the declaration should have covered | § 40-4-255(1), (2) |
| Any failure to comply with the disclosure statutes | The court shall order the noncomplying spouse to pay reasonable attorney fees or costs, unless it finds substantial justification or that the sanction would be unjust | § 40-4-255(3) |
| Perjury in the preliminary declaration | The court may set aside the judgment or part of it | § 40-4-252(6) |
| Perjury in the final declaration, discovered within 5 years of entry of judgment | The court may set aside the judgment or part of it | § 40-4-253(5) |
| Violation of the automatic economic restraining order | An appropriate order on motion, including sanctions and all remedies for contempt of court | § 40-4-126(4) |
Start with the first row. The statute says the failure to disclose an asset or liability on the final declaration "is presumed to be grounds for the court, without taking into account the equitable division of the marital estate, to award the undisclosed asset to the opposing party or the undisclosed liability to the noncomplying party" (MCA § 40-4-253(4)). It is written as a presumption, which means the court starts there and the spouse who failed to disclose has to answer for it. The statute does not describe what would overcome the presumption, so the result in a given case depends on the court's findings.
These remedies are in addition to "any other civil or criminal remedy available under law for the commission of perjury" (MCA §§ 40-4-252(6) and 40-4-253(5)).
Dissipation: When Assets Are Wasted, Not Hidden
Montana divides property "without regard to marital misconduct," so the court does not adjust the division because of how a spouse behaved in the marriage. Financial waste is treated differently. The court "shall also consider the contribution or dissipation of value of the respective estates" (MCA § 40-4-202(1)).
The statute does not define dissipation or list examples, and it does not set a formula for accounting for it. In general terms, the question is whether a spouse reduced the value of what there was to divide through spending or conduct that did not serve the marriage or the family. Ordinary living expenses, even generous ones, are not the same thing as waste, and a business loss or a bad investment made in good faith is different from money deliberately run through. Courts decide this on the evidence, such as account statements showing where the money went.
Debt created by waste raises the same issue from the other side. See dividing debt in a divorce.
The Restraining Order Once a Case Is Filed
When a petition is filed, the clerk issues an automatic economic restraining orderwith the summons. It restrains both spouses from "transferring, encumbering, concealing, or in any way disposing of" marital property without the other's written consent or a court order, with exceptions for necessities, the usual course of an existing business, and reasonable professional fees. It also restrains withdrawals from retirement accounts, changes to beneficiaries, and intentionally damaging or destroying property, "specifically including ... electronically stored materials, electronic communications, or financial records" (MCA § 40-4-126(1)).
The order binds the petitioner on filing and the respondent on service. If a spouse does not comply, the other may move for an appropriate order, including sanctions and all remedies for contempt (MCA § 40-4-126(4)). The court may also consider what the petitioner did within a reasonable time before filing that would have violated the order.
During the case, a court may order the liquidation or transfer of an asset to avoid unreasonable encumbrance, devaluation, or market or investment risk, on a showing of good cause (MCA § 40-4-256).
If You Suspect Something Is Missing
Start with the tools the law provides:
- Read the declarations against the records you already have. Joint tax returns, joint account statements, loan applications, and pay stubs are records a spouse who signed them or is named on them can ordinarily obtain.
- Ask for more particularity. A spouse who has complied may request that the other prepare a proper declaration or supply further detail, and may move to compel if that fails (MCA § 40-4-255).
- Use formal discovery. The disclosure statutes do not replace the discovery procedures of the Montana Rules of Civil Procedure (MCA § 40-4-258). See discovery in a divorce.
- Consider a forensic accountant when there is a business, cash income, or a pattern of unexplained transfers.
Do not open the other spouse's mail or e-mail, access accounts or devices that are not yours, or destroy records. Those acts can violate the restraining order and other laws, and they can damage your own position.
After the Decree
A property division is meant to be final, but nondisclosure is one of the stated exceptions. The property terms of a decree may be revoked or modified if the court finds conditions that justify reopening a judgment under Montana law, and "the decree may be modified, as provided in 40-4-251 through 40-4-258, for failure to disclose assets and liabilities" (MCA § 40-4-208(3)(b) and (8)). The same exception applies to a decree based on a separation agreement (MCA § 40-4-201(7)).
Time limits apply. The perjury provision for final declarations uses a window of 5 years from entry of judgment, and motions to reopen a judgment under the court rules have their own deadlines. If you learn of an undisclosed asset after your divorce, get advice promptly. See reopening a divorce judgment.
For the Spouse Making the Disclosure
If you are unsure whether something has to be listed, list it. The statutes are written to reach every asset and liability, existing or contingent, in either name. A preliminary declaration can be amended without the court's permission (MCA § 40-4-252(4)), so correct an honest omission as soon as you find it. Full disclosure is also what makes a settlement durable. For lawful ways to organize your finances during a divorce, see protecting your finances lawfully.
This page explains Montana law in general as of the 2025 Montana Code Annotated. It is not legal advice about your specific case.