Uncovering hidden assets during a Texas divorce

March 01, 2013 (Press-News.org) Uncovering hidden assets during a Texas divorce

Article provided by The Pinak Law Firm, PLLC
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According to statistics from the National Endowment for Financial Education, a startling 31 percent of people who combine assets with a spouse or partner admit to having been deceptive about money. Of those, 58 percent say they hid cash from a spouse or partner, 15 percent say had secret bank accounts, and 34 percent say they lied about their debt, income or other financial circumstances.

Many people who conceal assets from a spouse do so in order to affect the outcome of a property settlement or child support determination in the event of divorce. In Texas, this behavior is not only unethical, but illegal. A spouse who intentionally hides assets during divorce in Texas may forfeit a larger portion of the couple's shared property and can even face jail time.

Common methods of hiding assets

People who try to hide assets from a spouse during divorce use a wide range of techniques -- some highly complex and others startlingly simple. Examples of some common methods that people use to hide assets from a spouse include:
-Hoarding cash or other valuables in a secret location, such as a safe deposit box
-Transferring assets to someone else on a temporary basis with the intent to transfer them back after the divorce
-Setting up a phony custodial account in the name of a child or other third party
-Deliberately paying too much on taxes or other debts with a plan to obtain a refund after the divorce
-Investing in expensive items like antiques or artwork, the value of which is easy to overlook
-Deferring income such as commission or bonuses until after the divorce is final

Warning signs that a spouse may be hiding assets

Asset concealment often begins long before divorce enters the conversation, so it is important for people to be alert to some common warning signs that a spouse may be hiding assets, even during marriage. While any of these behaviors could have a legitimate explanation, it is wise to consider whether a spouse may be hiding assets if he or she:
-Begins taking out unprecedented amounts of debt or complaining of sudden financial hardships, such as the failure of a small business
-Is vague, secretive or controlling about the couple's financial affairs and does not share account information or passwords
-Is overly resistant to having lawyers involved in the divorce
-Reports unusual business expenses
-Maintains a lifestyle that appears mismatched with his or her reported income
-Opens multiple bank accounts for reasons that seem questionable

A skilled divorce attorney can help uncover hidden assets

Although asset concealment occurs with an unfortunate frequency among divorcing couples, the good news is that modern discovery methods have made it much easier for divorce lawyers to help their clients trace hidden funds during the divorce process. People who suspect a spouse of hiding assets to affect the outcome of a divorce property settlement, alimony award or child support determination should speak to a divorce attorney with experience uncovering hidden assets in Texas divorce cases.