Hidden Assets
Divorce Lawyer
What are hidden assets in a divorce case?
Divorce Attorneys
Hidden assets become an issue in divorces because they affect how the court would divide the jointly owned property. The court cannot divide property that doesn’t appear to exist.
Texas is a community property state, which means there are assets spouses jointly own. These are the assets they acquire during marriage. This would generally apply to income, property purchases, investments, retirement accounts, the family home, cars, a family owned business, intellectual property (patented or copyrighted material), etc. The exceptions, assets that are not community property, would include:
Inherited property- Gifts
- Personal injury lawsuit awards (except for income related compensation)
- Property listed in prenuptial agreements
During divorce, the court will divide the value of community property between the spouses. The division is not necessarily 50/50, but it is what the judge deems fair and just.
What are some ways that spouses can hide assets?
A spouse can hide assets from the other spouse by not disclosing their existence. A spouse could do this intentionally or not. Doing so intentionally is a form of fraud. Examples of ways to hide assets often include:
- Not cashing income checks or bonuses
- Failing to disclose income sources
- Hidden accounts, such as crypto or offshore accounts
- Transfers to family or friends through checks or cash
- Overpaying taxes during the divorce year with the intention of receiving a refund after the divorce
- Concealing the true value of a family owned business
What could be signs that your spouse or ex-spouse hid assets?
Signs of undisclosed assets can range from secretive actions to strange financial activity to lifestyle changes. Examples include:
- Secretive actions. Creating passwords that prevent you from accessing financial accounts, hiding records, avoiding financial discussions or deleting financial files.
- Strange activities. These might be new actions that are unusual, such as stashing away large amounts of cash, transferring money to family, to friends or into new accounts, or taking out new loans without any apparent financial reason to do so.
- Lifestyle changes. Evidence of lifestyle changes might be suddenly buying a high-priced luxury car, acquiring lavish valuables, using multiple phones and phone numbers.
What actions can we take to investigate and find hidden assets?
One way to discover hidden assets is through the discovery process. Basically, this involves requests for records such as bank statements, tax returns, investment account statements and business records. We can also hire forensic accountants to analyze finances for discrepancies and to trace funds. They can do lifestyle audits to see how spending and income compare. They can examine any signs of hidden assets including monetary transfers, spending changes, failure to report income in the business, etc.
What if you don’t suspect your spouse hid assets until after your divorce?
Discovering undisclosed assets after a divorce is actionable. Texas courts recognize the right for an ex-spouse to seek relief if a spouse failed to disclose assets. For this reason, if signs of hidden assets emerge, you should contact a family law attorney as soon as possible. Failure to identify property during the divorce proceedings should not limit your ownership rights to the property. The court would decide how to divide the assets. If we can prove that the nondisclosure was intentional, the court might award you all of the hidden assets.
What actions can we take to investigate and find hidden assets?
One way to discover hidden assets is through the discovery process. Basically, this involves requests for records such as bank statements, tax returns, investment account statements and business records. We can also hire forensic accountants to analyze finances for discrepancies and to trace funds. They can do lifestyle audits to see how spending and income compare. They can examine any signs of hidden assets including monetary transfers, spending changes, failure to report income in the business, etc.
What if you don’t suspect your spouse hid assets until after your divorce?
Discovering undisclosed assets after a divorce is actionable. Texas courts recognize the right for an ex-spouse to seek relief if a spouse failed to disclose assets. For this reason, if signs of hidden assets emerge, you should contact a family law attorney as soon as possible. Failure to identify property during the divorce proceedings should not limit your ownership rights to the property. The court would decide how to divide the assets. If we can prove that the nondisclosure was intentional, the court might award you all of the hidden assets.
Find out more about legal representation to deal with hidden assets
We can discuss the details of your situation, address your concerns, and advise the best legal strategy to deal with it. If your spouse or ex-spouse is denying your rights to property ownership of assets or a business, we can discuss your legal options. We’re glad to answer any questions you might have.
Call 940.566.0606 to schedule an appointment.
Reach out to us
DTX Family Law offers paid consultations with Board-Certified Family Law Attorney Chrysandra S. Bowen.
Our consultations are designed to provide meaningful legal guidance, case evaluation, and strategy tailored to your situation.
DTX Family Law
525 S. Locust Street, Ste. 100
Denton Texas 76201
Phone: 940.566.0606