It may be hard to believe that someone you shared a life with would try to hide money or property from you when the relationship sours, but divorce can sometimes change a person. Unfortunately, hidden assets affect how marital property is divided and could leave you with less than you are entitled to receive.
Not every unexplained transaction means that someone is hiding property. The key is to recognize potential warning signs so you can take the appropriate steps during your divorce.
Protecting your financial interests
Texas is a community property state, which means most assets acquired during the marriage (except certain gifts and inheritances) are divided fairly between both parties during a divorce. A hidden asset is money, property or another financial interest that a spouse intentionally fails to disclose or attempts to conceal during a divorce, usually with purposeful intent. They want to avoid sharing.
There is no single warning sign that your spouse is concealing assets, but there are some issues that deserve further investigation:
- Unusual withdrawals from bank accounts or frequent cash transactions
- New or unfamiliar bank accounts
- Missing financial statements
- Unexplained changes in reported income, delayed bonuses or unusual business expenses
- Transfers or “loans” to friends or family members
- Undisclosed real estate or investment accounts
- Valuable property that suddenly disappears
In some cases, a forensic accountant can be an important resource, particularly when a spouse owns a business, has complex investments, receives income from multiple sources or appears to have unexplained changes in wealth.
Texas law addresses the depletion of community assets. Depending on the circumstances, the court may award the wronged spouse an appropriate share of the remaining community property, enter a money judgment against the spouse responsible for the fraud or grant both forms of relief.
If you’re preparing for a divorce and believe your spouse may be concealing assets, speaking with a legal professional can help you understand your rights, pursue appropriate financial disclosures and work toward a just and right division of the marital property.
