Your Spouse May Be Hiding Income or Assets in Your Texas Divorce

 Posted on October 13, 2021 in Divorce

When 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.

Uncovering Financial Deception in a Texas Divorce

The methods spouses use to conceal assets in a divorce are nearly limitless. Fortunately, even the most devious spouses leave clues of their financial deception. In a divorce case, an experienced divorce lawyer may use discovery tools like requests for the production of documents or subpoenas to find hidden assets. The lawyer may also work with a forensic accountant who will look for clues pointing to undisclosed assets in the spouse’s tax returns, loan applications, bank statements, and other financial records.

Contact a Frisco Divorce Lawyer

If you suspect that your spouse will try to manipulate your divorce by hiding assets, contact Collin County divorce attorney Philip Woods Moore, Jr. for help. Call 972-954-6455 for an initial consultation.

Source:

 https://statutes.capitol.texas.gov/Docs/FA/htm/FA.7.htm