In Texas, you share all your marital assets and liabilities with your spouse. As a community property state, any property acquired by either spouse during the marriage is subject to equal division under the law during a divorce.
This equitable division law can inspire some spouses to hide certain assets to avoid sharing the value with their partners.
Is your spouse hiding assets?
The law requires that both spouses disclose all income and assets during the divorce process. However, many people try to hide revenue or property, and it is beneficial to take steps to confirm your spouse’s information.
Look for signs that your partner is concealing relevant data, like overpaying of debts, recent large purchases, new bank accounts, a post office box address or significant withdrawals from your joint accounts.
How do people hide assets?
There are many ways someone may attempt to hide assets, including:
- Undervaluing property
- Transferring funds to a foreign account
- Giving monetary gifts to business partners or friends
- Making business income appear less than it is
How can you find hidden property?
You can start by requesting and reviewing the financial documents of your spouse. This step is crucial when one partner controls all aspects of money management in the relationship. Make copies of all financial documents you have access to and look for red flags. Unusual bank account activity may signal dishonest behavior. Past tax returns may reveal property you did not know existed.
The discovery process of your divorce requires that you both comply by providing loan documents, account statements, tax records and other relevant information. You can hire a forensic accountant if you feel there are assets still undisclosed.
It is essential to understand the scope of your marital assets and liabilities to help you get a fair settlement in your case.