How Can I Protect Myself if My Spouse Hides Assets Before Divorce?

 Posted on November 11,2024 in Divorce

One of the most intensive aspects of a divorce involves the division of the marital estate. Texas follows a community property model for the distribution of their assets, meaning anything owned jointly by the spouses and acquired during their marriage is to be divided equally, with a 50/50 split. Couples need to work out how much their joint assets are worth so they can calculate an equal division.

Unfortunately, when divorce is approaching, some people decide to hide assets so that they will get a disproportionate amount of what should be divided equally. Hiding assets is illegal, but proving it can be challenging without knowing the signs. If you are preparing for a divorce and believe your spouse is hiding assets, contact an experienced Frisco, TX family law attorney who can offer helpful guidance.

What Are Hidden Assets?

Hidden assets are assets that one spouse intentionally conceals from the other during divorce proceedings to avoid dividing them. These can include:

• Undisclosed bank accounts

• Off-the-books cash or investments

• Real estate that is hidden in someone else’s name

• Undervalued business interests or investments

• Personal property, such as valuable jewelry or collectibles

It is both illegal and unethical to hide assets, and Texas courts take this issue seriously. If it is proven that one spouse intentionally concealed assets, the court can order the hidden assets to be divided differently, likely in a more favorable way for the other spouse. Additionally, the spouse who hid them could face serious penalties.

How Can I Uncover Hidden Assets?

If you suspect that your spouse is hiding assets, you can uncover the truth in several ways, including:

• Financial discovery: Both spouses are required to fully disclose their financial information during a divorce. This includes providing tax returns, bank statements, retirement accounts, and more. If the information your spouse provides is incomplete, you can file a motion to compel full disclosure.

• Forensic accounting: Forensic accountants can uncover hidden assets. They can track down hidden income, assets, and transactions that may have been concealed during the marriage. They also find hidden bank accounts, unreported income, and disguised assets.

• Increased vigilance: Being aware of potential red flags makes you more likely to spot any that may exist. Take note of unusual financial behavior, for example, if your spouse makes large cash withdrawals, suddenly gives big gifts to family members, or changes his or her spending habits. Making significant financial decisions without consulting you may also signal attempts to hide assets. You should also examine your spouse’s tax returns and financial records to see if there are any discrepancies, like missing income or unexplained deductions.

What Happens if I Discover Hidden Assets?

Texas law aims to ensure that the division of property in divorce is fair. If a court discovers that a spouse has purposely hidden assets that should be divided equally, there can be severe consequences. Your spouse could face sanctions or penalties and you might also be awarded a larger share of the assets. A knowledgeable lawyer can have a significant impact on your outcome.

Schedule a Free Consultation with a Collin County, TX Divorce Lawyer

If you are concerned that your spouse might be hiding assets to manipulate the division of your marital estate, a qualified Frisco, TX divorce attorney can help you investigate your suspicions. At The Law Office of Linda Risinger, we are dedicated to ensuring that our clients get the fair share they are entitled to, and we will advocate aggressively to protect your rights. Call us at 972-294-6533 to schedule a free consultation.