Beware of Hidden Assets in Divorce

November 03, 2012 (Press-News.org) Beware of Hidden Assets in Divorce

Couples going through a divorce in Texas must usually undergo a thorough lifestyle analysis to determine the couple's marital property and what an individual's budget may look like after the divorce. An accurate inventory of all the assets is an essential part of the analysis and is vital to achieving a fair division of property in a Texas divorce.

Unfortunately, some spouses try to cheat by hiding assets, then reclaiming them some time after the property division is finalized, ending up with an unfair share of the marital property. The lifestyle analysis is a tool that can help reveal the existence of hidden assets, and it is even better if the potential victim of the deception can uncover it before it goes too far.

If there is any chance a marriage is headed for divorce, spouses should be wary of attempts by the other party to conceal assets. Experts suggest watching out for suspicious behavior, which could indicate a wide variety of schemes. A spouse might start acting defensive, overreacting to simple questions about family finances. The guilty spouse might also become more controlling about managing the money.

If bank statements and other financial statements used to be delivered to the home address, but the home delivery stops, it is time to question the other spouse about where the statements are going. Proactively, it is a good idea to request personal copies of these statements directly from the banks and other companies issuing them. In general, one should obtain copies of all financial records and become fully informed about the couple's finances in advance of a divorce.

Sometimes a spouse may suddenly appear to be earning much less money. The spouse could be secretly deferring salary, commissions and bonuses until after the divorce is finalized, so the income won't show up as a part of the couple's marital property.

If there is a family business, a spouse in a management position could pretend to be hiring and paying new employees while actually diverting money into a clandestine account. It is also possible to put off receiving income by delaying contracts with new customers so that their payments come in after the divorce. Spouses can also hide money by having more withheld for taxes from their paychecks, expecting a refund after the divorce.

There is seemingly no end to the devices a manipulative spouse can use to conceal assets. Alertness and unwillingness to surrender financial control will serve the other spouse well in combating these immoral and illegal tactics. If you suspect your spouse may be hiding or diverting assets in anticipation of a divorce, it is also wise to obtain the legal counsel of an experienced family law attorney. If divorce may be in your future, contact a knowledgeable Texas divorce attorney to protect your interests.

Article provided by Piper & Turner, PLLC
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