Texas is a community property state for divorce. Unfortunately, this means there’s a lot of incentive for one spouse to hide assets.
Maybe you want to protect a certain item from a forced sale, or perhaps a wealthier spouse feels entitled to the full amount of their pension and retirement investments. Or, maybe one spouse simply doesn’t want to give the other another penny more than they have to.
Regardless of the motivation, it’s common enough that our Frisco divorce attorneys can spot the red flags that often signal divorce fraud. Our legal team and experts know how to find hidden assets in divorce and take legal action for your benefit.
Complications from hiding assets in a divorce
Most couples want to get their divorce over with as quickly as possible. Hiding assets can delay the process for months or longer. If you suspect your spouse is hiding assets, it may take some time for a forensic accountant or divorce lawyer to unravel the mess and track them down.
All of this costs money. You may be able to petition the judge to make your spouse pay for your additional legal costs, but this isn’t guaranteed. Plus, you may be completely on the hook for the services of a forensic accountant.
Judges base decisions about dividing debts and assets, child support, and alimony on the financial disclosures both parties submit. You may not get your fair share if your spouse is hiding assets. Your children may suffer too, as they could be entitled to more child support than you’re receiving.
Texas family law judges take a dim view of hiding assets and can intervene on your behalf, but only if the judge is made aware of the situation. Legal consequences for the sneaky spouse can include but are not limited to:
- Awarding the wronged spouse additional assets
- Assessing fines
- Filing criminal charges
Is my spouse hiding assets?
In our decades of experience litigating and mediating Texas divorces, we’ve seen quite a bit of creative asset-hiding. It can begin even before you tie the knot.
Did you sign a pre- or post-nuptial agreement in good faith? If you did and discovered later that your spouse was hiding assets, a judge may invalidate the agreement. That could mean you get half of the marital assets.
Other times, hiding assets happens slowly over time. There are a few red flags to look for, such as:
- Being denied access to certain accounts
- Large amounts of cash transactions
- Your spouse bringing home less income than their job would typically pay
Unless a judge grants a motion for an extension, spouses are required to submit full financial discovery within 30 days of filing for divorce. Go over your spouse’s discovery carefully. Alert your attorney if anything seems off or you think something is missing. If you believe some financial records are missing, your attorney can subpoena them.
What about hidden assets found after divorce?
If your spouse gleefully flaunts hidden assets once the divorce decree is signed, you may be able to take legal action. You can either pursue a civil claim against them or petition the judge to revise the decree to divide the hidden assets.
Your divorce lawyer can advise you on the best approach.
How to find hidden assets in a divorce
This is your first step if you haven’t hired a lawyer yet. Good divorce lawyers have access to resources like forensic accountants and experienced private investigators who can track down whatever your spouse is hiding.
Forensic accountants
A forensic accountant reviews your spouse’s financial transactions, including tracing assets that may be buried offshore or disguised in “shell companies.” We also examine how your spouse may under-report income, such as taking a salary in stock options instead of a paycheck.
Private investigators
A private investigator may conduct a lifestyle analysis, seeking evidence that your spouse is hiding assets and cash, squandering marital funds on gambling, drugs, or alcohol, or spending money on an affair partner.
You’re entitled to demand replenishment of your share of wasted marital assets. If we find evidence that your spouse is using communal money in one of these ways, we may initiate legal action to make it right.
Family and friends
Some spouses transfer assets to family or friends before filing for divorce. They think doing so will mean the assets no longer legally belong to them.
A judge can order the person holding the assets to reverse the transaction. They can even decide that the transferred assets are all your spouse receives, giving you the remainder of the community property.
Get the divorce representation you need today
If you believe your spouse is hiding assets, call Albin Oldner Law. We know how to find hidden assets during divorce and are fully prepared to pursue the fullest consequences against your spouse that Texas divorce law allows.
Contact us at (214) 423-5100 for an appointment.
