Texas law requires divorcing spouses to disclose all of their assets, including financial accounts, retirement plans, property, and more. Unfortunately, not every spouse is honest about what they own. Hidden assets are more common than many think—studies suggest that nearly 30% of adults with shared finances have hidden money or purchases from their partner.
If you suspect your spouse is concealing property or funds, a high-asset divorce attorney can help ensure nothing is overlooked.
What Are Hidden Assets in Divorce?
Hidden assets are property or funds that one spouse conceals or transfers to prevent the other spouse from receiving a fair share during divorce. Common methods include hiding cash, moving funds to relatives’ accounts, or undervaluing collectibles and antiques.
Hiding assets is not only unfair—it can result in perjury, fraud, contempt of court, or civil penalties if uncovered.
Common Types of Hidden Assets
Some assets are easier to conceal than others. Common examples include:
- Cash – difficult to trace and often unreported.
- Transfers to relatives/friends – moving funds or property into someone else’s name.
- Foreign accounts – opening accounts abroad or investing overseas.
- Business manipulation – underreporting income, delaying contracts, or creating fake expenses.
- Sudden spending – frivolous purchases to drain marital funds.
- Retirement accounts – failing to disclose eligibility or balances.
- Business payroll tricks – funneling money into fake payroll or inflated expenses.
- Collectibles/antiques – undervaluing high-worth items.
- Destroyed or altered records – eliminating financial paper trails.
- Accounts in children’s names – shielding funds in a minor’s account.
- Fake debt payments – paying off “debts” that don’t exist.
How Courts Uncover Hidden Assets
Written Discovery
Through the discovery process, one spouse can request documents such as:
- Bank statements
- Paychecks and tax returns
- Credit card and retirement account statements
- Digital payment records (PayPal, Venmo, Cash App)
- Property or investment account histories
Local Disclosures
Courts may require both parties to file a sworn inventory and appraisement, including:
- Bank accounts
- Tax returns
- Assets and debts
- Supporting documentation
Judges rely on these disclosures when dividing marital property.
How to Spot Hidden Assets
During divorce, spouses should carefully review financial records and look for red flags, such as:
- Household bills being paid from unknown accounts
- Undisclosed property ownership revealed through public records searches
- Suspicious transfers or purchases from joint accounts
- Discrepancies between tax returns and reported income
- Expenses that don’t align with reported earnings
Comparing expenses against income often reveals whether hidden funds are being used.
The Role of Forensic Accountants
When hidden assets are suspected, attorneys often work with forensic accountants to uncover financial discrepancies. These professionals specialize in analyzing complex financial records and tracing funds that may have been concealed.
How Forensic Accountants Help Uncover Hidden Assets
- Tracing Income & Expenses – They compare reported income against lifestyle and spending habits to identify inconsistencies.
- Business Valuations – For self-employed spouses or business owners, forensic accountants evaluate whether income has been underreported or diverted.
- Asset Tracing – They track down funds that may have been transferred to third parties, offshore accounts, or hidden in investments.
- Uncovering Fraudulent Transactions – They identify tactics such as inflated business expenses, fake debt payments, or missing financial records.
- Expert Testimony – Forensic accountants can testify in court, presenting clear evidence to demonstrate whether one spouse is attempting to hide assets.
By working alongside a skilled divorce attorney, forensic accountants provide the financial expertise needed to ensure a fair division of property. In high-asset divorce cases, their involvement is often the key to exposing dishonesty and protecting your financial rights.
Why You Need a High-Asset Divorce Attorney
Uncovering hidden assets is complex and requires legal skill, especially when businesses, overseas accounts, or manipulated records are involved. An experienced attorney can:
- Subpoena records and accounts
- Work with forensic accountants
- Ensure full and fair disclosure
- Advocate for penalties against dishonest spouses
If you suspect your spouse is concealing assets, consult with a Southlake and Fort Worth high-asset divorce attorney to protect your financial future.
Call 817-900-8330 today or contact us online to schedule a confidential consultation.
