Whether it be due to resentment or greed, spouses may conceal certain assets from one another. If hidden assets are discovered after the divorce settlement is finalized, a spouse may receive court sanctions or penalties. The severity of the punishment will depend on the level of deception. Our divorce lawyers understand what legal remedies may be available if your spouse is discovered to be concealing property.
Marital versus Separate Property
Marital property is any property that is acquired during the marriage, excluding inheritances or gifts (even if they are acquired during the marriage). In contrast, separate property is any property owned by each person before marriage. Texas is a community property state, with marital property being distributed in the fairest way possible upon divorce. This does not always mean the split is 50/50; instead, it means what the court deems “just and right.”
Ways a Spouse May Hide Assets
Nobody thinks that their spouse will hide assets, even in a high-stress situation like divorce. Common ways that a spouse may hide assets include opening a new account under their child’s name, transferring money to family members (with the agreement of having it returned to them after the divorce is finalized), or purchasing valuable items with the intention of reselling them later for a profit. While undeniably creative, concealing assets places the honest spouse at a financial disadvantage.
Discovering Hidden Assets
If you suspect that your spouse may be concealing a bank account, retirement fund, or other asset, you may consider hiring a forensic accountant. A forensic accountant has the skills to conduct audits and investigations to locate hidden assets. They will examine financial records to pinpoint any inconsistencies that may suggest that your spouse is being dishonest. They are highly trained in tracing transactions to determine when and how your spouse is concealing assets. In some situations, a forensic accountant may discover that your spouse is partaking in fraudulent activity, making them vulnerable to criminal charges.
Remedies if Your Spouse is Concealing Assets
Texas law mandates full disclosure of assets during a divorce. If caught, your spouse may face court sanctions and other penalties. Common court remedies include forcing the offending spouse to pay fines, restitution to the victim, or recalculating property division between the spouses. If the financial discrepancy is significant, the judge may also reconsider alimony and/or child support awards. If the offending spouse signed an affidavit attesting to transparency in their finances, they may be found guilty of perjury, potentially leading to jail time.
A San Antonio, TX, Divorce Attorney Fighting for Your Rights
Although some people consider divorce to be “financial suicide,” it certainly should not be if both parties are open about their finances. At Cook Law, we believe that parting ways, although excruciating, is the right choice for some couples. However, this separation will only be fair if both spouses are truthful about their assets. If you have reason to believe that your spouse has lied about their financial holdings, our firm would like to hear from you. To schedule a meeting with our San Antonio, TX, divorce lawyer, contact us online or by phone at (210) 740-0281 today.