Is Your Spouse Lying About Assets in Your Divorce?

 Posted on August 23, 2021 in Family Law

The division of a couple’s joint property is often one of the most significant aspects of a divorce, especially in high net worth divorce cases. Whether spouses are able to reach an out-of-court property division settlement or property division is decided by the court, the division of assets and debts should be based on accurate, current financial data. Unfortunately, some spouses attempt to sway the outcome of the divorce in their favor by lying about their assets and income.  

How Spouses Hide Assets in a Divorce

To divide property in a divorce, both spouses must disclose detailed financial information. However, some spouses fail to tell the whole truth.

Some common tactics used to conceal assets or manipulate property division in a divorce include:

• Transferring money or property to another individual
• Physically hiding cash in a safety deposit box or other secret location
• Undervaluing assets like antiques, jewelry, or collectibles
• Using a business to conceal assets
• Overpaying taxes
• Creating fake debts or loans
• Setting up secret bank accounts
• Gifting money or property to a new boyfriend or girlfriend
• Delaying bonuses or commissions until after the divorce
• Reporting a lower-than-actual income

Consequences of Financial Fraud During a Divorce

A spouse’s income and assets are used to determine a fair division of property, calculate child support and alimony, and more. Lying about financial information can significantly impact the outcome of the divorce. The Texas Family Code refers to hiding assets in a divorce as “fraud on the community.” A spouse who commits fraud on the community may face monetary penalties and even criminal consequences.

Uncovering Financial Deception

If you are getting divorced, you deserve the terms of your divorce to be based on the truth, not your spouse’s fabricated version of the truth. A divorce lawyer who has experience finding hidden assets can help you uncover financial deception and ensure that your rights are protected. Your lawyer may utilize discovery tools like depositions and interrogatories or work with forensic accountants and other financial experts to find the hidden assets.

Contact a Llano County Divorce Lawyer for Help

If you have reason to suspect that your spouse will lie about finances to manipulate the outcome of your divorce, contact the Law Office of Russ Alan Baker, LLC for help. Llano divorce attorney Russ Baker has more than 15 years of legal experience helping divorcing spouses with a wide range of legal concerns. Contact our office today for a free, confidential consultation. Call 325-216-2006 to schedule an appointment.

Sources:

https://www.forbes.com/sites/catherineschnaubelt/2019/03/08/finding-hidden-assets-in-a-divorce/

https://statutes.capitol.texas.gov/Docs/FA/htm/FA.7.htm