3 actions that lead to claims of hidden assets in a Texas divorce

 Posted on November 11, 2021 in Divorce

Some people make the decision to divorce and act instantly, but many others take time to prepare before they file. It is important to make arrangements to live independently and protect yourself financially when you file for divorce. However, you have to be careful about how you attempt to do so.

The wrong actions could look like misconduct to the courts and possibly undermine your rights in the divorce proceedings. You have to be honest about any property you take, especially if it is community property under Texas law.

How could your financial preparation for divorce lead to accusations of misconduct?

When you don’t disclose your secret escape fund

It is common for people to set aside money so that they can support themselves after a divorce filing. However, the income you used to fund that account or stash is technically a marital asset.

Unless you have a marital agreement designating your income as separate property, you will have to share the information about your private bank account with your spouse and the courts when you file for divorce. If you try to hide the account or the balance in it, that could lead to property division consequences later.

When you try to move or hide physical property from your home

There may be certain assets that you want to keep in the divorce, and moving them so that you have access to them right away or so that your spouse can’t damage them may seem like a good idea.

However, as with any hidden bank account, it is important that you disclose fully any physical assets that you removed from the marital home unless they were your separate property. If you didn’t own them prior to marriage or inherit them, then you likely have to share their value with your spouse in the divorce.

When you lie about the value of major assets

You don’t have to physically move property to deprive your spouse of its value. Misrepresenting what your assets are actually worth could have the same effect. If your spouse can show that you substantially undervalued assets in a way that favored you, that could influence how the courts divide your property or even prompt them to revisit the property division order from your divorce.

Learning more about property division and accountability can help you take the right steps when getting ready to file for divorce.