FAQs About Financial Fraud in Texas Divorce Cases

 Posted on October 11, 2022 in Family Law

Almost every aspect of a Texas divorce case involves finances. Divorcing spouses must take stock of their assets and debts and find a way to divide those assets and debts during the divorce process. Alternatively, if the couple cannot reach an agreement, the court will make a determination on their behalf. Child support and financial support are also directly determined by the spouses' financial circumstances. 

When a spouse is dishonest about his or her income, expenses, debts, or property, it can influence the divorce heavily. If you suspect your spouse is lying about money or hiding assets during your divorce, it is important to take action. An experienced Texas divorce attorney can help you investigate the matter and take steps to protect your interests. 

What Does Financial Fraud Look Like? 

Some common examples of financial fraud in divorce cases include: 

• Hiding or underreporting income
• Getting paid "under the table" in cash and failing to report the income
• Hiding or failing to disclose assets
• Overstating debts
• Making false claims about job loss or income reduction
• Transferring property to friends or family members to keep it out of the divorce
• Falsifying financial documents 
• Using a business or professional practice to hide income or assets

How Can I Find Hidden Assets and Income?

Divorce lawyers have many tools at their disposal to reveal financial fraud.  Some common methods used to uncover hidden assets or income include: 

• Subpoenas - Your attorney can subpoena your spouse's employer, financial institutions, and other relevant parties for financial records.
• Forensic audits - In some cases, a forensic accountant may be hired to examine financial records for signs of fraud or inaccurate reporting. 
• Private investigators - A private investigator may be hired to conduct surveillance or gather the information that suggests your spouse is hiding income or assets. 
• Discovery tools - Interrogatories, requests for production, and depositions are just some of the legal tools that may be used during the discovery process to obtain evidence of financial fraud.

What Are Some Warning Signs That a Spouse Is Lying About Money During Divorce? 

Some common warning signs that your spouse may be hiding assets or income during divorce include:

• Unusual or unexplained withdrawals from bank accounts
• Sudden changes in lifestyle or spending habits
• Making large cash deposits or purchases
• Hiding property, documents, or receipts
• Refusing to provide the requested financial information 
• Making false claims about income and debts

What Should I Do If I Suspect Financial Fraud? 

If you suspect your spouse is hiding assets or income during your divorce, contact an experienced Texas divorce attorney for help right away.  An attorney can help you investigate the matter and take steps to protect your interests. It is also a good idea to gather financial documents such as bank statements, tax returns, pay stubs, and credit card statements. 

Contact a Llano County Divorce Lawyer 

Llano divorce attorney Russ Alan Baker can protect your rights and help you fight for a favorable divorce outcome. Call the Law Office of Russ Alan Baker, LLC at 325-216-2006 for a consultation. 

Source:

https://www.forbes.com/sites/heatherlocus/2022/06/28/red-flags-of-financial-fraud-in-divorce--and-what-to-do-about-them/