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What You Should Know About Hiding Assets in a Texas Divorce

Posted on in High Asset Divorce

TX divorce lawyerMany couples who decide to file for divorce are willing to communicate openly and honestly about their assets in an effort to ensure that their divorce is resolved as smoothly and as amicably as possible. Unfortunately, this is not always the case, especially in high asset divorces when valuable property is at stake. In these cases, it is not uncommon for one spouse to try and hide assets from the other in an effort to avoid reaching a fair property settlement. If you believe that your spouse is hiding assets in order to avoid dividing them equitably upon divorce, you should speak with an experienced high asset divorce attorney who can help you determine your next steps.

Why Hiding Assets Is Problematic

Texas is a community property state, which means that most family law courts divide marital assets owned by a divorcing couple fairly and equally upon dissolution of the marriage. Hiding assets makes this endeavor nearly impossible and could leave one spouse struggling financially after the divorce is finalized. Unfortunately, this type of conduct is particularly common in high asset divorce cases, where one spouse wants to keep a unique or valuable asset to him or herself.

What Are the Penalties for Hiding Assets in Texas?

Because hiding assets is so detrimental to the process of creating a fair property settlement, Texas courts impose severe penalties on those who attempt to defraud their spouses in this way. For instance, a divorce judge who is confronted with evidence of concealed assets could order the at-fault party to give up the asset to the other spouse or could award a greater share of the community assets to the innocent party. Parties who choose to hide assets during divorce could even face charges from the IRS if those actions had tax implications.

Signs that Your Spouse May Be Hiding Assets

Fortunately, there are a few signs that divorcing parties can keep an eye out for that indicate whether one spouse is hiding assets, including:

  • Increases in financial transactions, such as moving money between accounts and making large withdrawals;
  • Inflating living expenses;
  • Failing to share financial information from an account that contains the majority of assets or is involved in day-to-day transactions;
  • Avoiding or refusing to answer questions about their financial situation;
  • Choosing to postpone a salary adjustment, or deferring a promotion or bonus;
  • Transferring assets to a friend or family member;
  • Purposely overpaying taxes or using a refund to pay off future estimated payments; or
  • Opening a bank account with a third party.

If you have recognized any of these signs during your own divorce, please contact a member of our legal team today.

Contact an Experienced Leander High Asset Divorce Lawyer

If you believe that your spouse is not being honest about the value or location of a marital asset, it is important to consult with an experienced attorney as soon as possible. Please call The Law Offices of William D. Powers at 512-610-6199 today to speak with an experienced Leander high asset divorce lawyer about your legal options.

 

Sources:

https://guides.sll.texas.gov/community-property

https://www.forbes.com/sites/forbesfinancecouncil/2017/09/22/is-your-spouse-hiding-money-from-you/#2c9c9dab6de4

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