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Collin County Divorce LawyerWhen a couple gets married, we typically think of it as an emotional or romantic union, not a financial union. However, getting married does entangle the spouses’ finances considerably. During a divorce, the spouses’ property and debts will be divided. However, each spouse must be fully transparent about his or her assets, income, and debts in order for property division to be accurate. Some spouses try to manipulate their divorce outcome by hiding assets.  

Financial Fraud is Fraud on the Community

Texas divorce cases are subject to community property laws. This means that property acquired during the marriage is the property of both spouses. Both spouses are entitled to a portion of the marital estate during property division in a divorce – save for a few exceptions. Separate property is not divided. However, the amount of separate property a spouse owns can still influence the divorce case. Each spouse’s income and overall financial circumstances heavily influence issues like child support and alimony. Some divorcing spouses try to sway divorce issues in their favor by lying about income and assets. They may do so to gain a financial advantage or to “get revenge” on their spouse. Hiding assets in this way is considered “fraud on the community” by Texas law.

Sneaky Ways Spouses Manipulate Financial Information in a Divorce Content

There are many ways spouses may try to hide assets in a divorce. Some use business interests or investments to conceal money. Business owners may delay invoicing clients, fabricate business expenses or debts, or lie about the value of the business. Other spouses hide assets by hiding physical cash or valuables like jewelry. They may use a safety deposit box to hide assets or transfer assets to a friend or family member. Some spouses even overpay the IRS to evade a fair division of property. Once the divorce is over, they recoup the money through a tax refund.

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Frisco High-Asset Divorce AttorneyWhen you are going through a divorce, all of the financial assets you acquired throughout your marriage can be affected by the division of marital property. This can be especially concerning to business owners, who may be at risk of losing their business, or at least a substantial share of it. If you have business assets to divide in your divorce, it is important to work with an experienced attorney who can help you protect them as much as possible.

One important step in determining how a business will be handled in a Texas divorce is obtaining a business valuation. However, different types of businesses may need to be valued in different ways, and you should be sure to understand the option that best applies to your circumstances.

Understanding Different Business Valuation Methods

Not all businesses are created equal. For the purposes of business valuation in a divorce, a publicly-traded business may need to be valued very differently from a closely-held family business, for example. Your attorney can help you work with a knowledgeable financial professional to determine the most appropriate valuation method for your business. Options include:

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