Uncovering Hidden Assets in a Divorce

Uncovering Hidden Assets in a Divorce

Jul 25, 2022
img

Texas state law requires divorcing spouses to disclose relevant information about all of their assets, which can include financial accounts, retirement assets, property, and more. When you suspect that your spouse is not being honest in disclosing their assets, you will want to contact a high-asset divorce attorney in Southlake, and nearby.

 

Any assets that a spouse tries to conceal or transfer for the purpose of the other spouse not being able to claim them are known as hidden assets. Reports indicate that three in 10 adults with combined finances hid assets or purchases from their partner, and approximately 7.2 million Americans hid a bank or credit card account from their live-in spouse or partner.

Types of Hidden Assets

Some assets end up being hidden more often during a divorce than others. Some examples of commonly hidden assets include, but are not limited to:

 

  1. Cash is perhaps the most common hidden asset because of the difficulty in tracing it.
  2. Transferring money or property from joint accounts into the possession of friends or relatives.
  3. Making investments abroad or opening accounts overseas.
  4. Spouses who are self-employed may falsify their income to force the other spouse to receive less in a divorce settlement. Business owners could also attempt to lower their salary, delay signing business contracts, skim cash from a register, or other tactics.
  5. Suddenly spending large sums of money on frivolous activities or purchases.
  6. Spouses may not notify the other spouses of retirement accounts or eligibility to receive funds through an employer.
  7. Funneling money into a business under the guise of extra payroll or business expenses.
  8. Spouses who own collectibles or antiques could try to assign a far lower value to such items, knowing the difficulty in determining their actual value.
  9. Altering or destroying financial records completely.
  10. Setting up a bank account in a minor child’s name.
  11. Making payments towards debts that do not actually exist.

 

When a spouse intentionally hides assets, they could face charges of perjury, fraud, contempt of court, or civil court violations. None of this will happen without uncovering hidden assets first.

Reviewing All Relevant Documentation

There are generally two ways in which parties can force the other spouse to disclose assets. These include:

 

1. Written Discovery — The discovery process involves one spouse sending the other spouse written requests for tangible documents. The requests may go back to the date of marriage and could include bank statements, paychecks, credit card statements, retirement statements, stocks, bonds, PayPal, Venmo, or Cash App histories, health savings accounts (HSAs), or more. Any type of property or account history can be subject to a request.

 

2. Local Disclosures — A family court could require both parties to disclose their bank statements, tax returns, paychecks, and a sworn inventory and appraisement by a specified date. The sworn inventory and appraisement will be a notarized or verified document that should contain an accounting of all of a person’s property, including all of their assets and debts, with supporting documents that show current statements. Should a divorce go to trial, the trial judge relies on the parties’ inventories when making a final property division.

 

During a divorce, both spouses will have to complete financial affidavits and disclose all of their income and assets. Each spouse should look over additional documentation to confirm the information that the other spouse is providing, and spouses can benefit by doing the following:

 

  1. Confirming that only known accounts are being used to pay household bills.
  2. Conducting a public records search to determine whether the other spouse owns any undisclosed real estate.
  3. Looking for suspicious purchases or transfers made from any shared bank or brokerage accounts.
  4. Reviewing the other spouse’s tax returns and 1099 forms to discover any unreported income or accounts.
  5. Comparing monthly expenses to reported income to make sure that no additional income is being used to address household expenses.

Call to Schedule a Consultation with a Southlake High-Asset Divorce Attorney

Did you need help reviewing the assets of your spouse for a divorce in Texas? Make sure you are working with the knowledgable and dedicated team at Mims Ballew Hollingsworth | Family Law. Our firm knows how to handle these cases and can make sure that all hidden assets will be uncovered. You can call us at (817) 900-8330 or contact us online to schedule a consultation so we can review your case and answer all of your legal questions.

Contact Us Today!

Put Our Team On Your Side

    or call us at

    817-900-8330

      • img
      • img
      • img
      • img
      • img

      I highly recommend this law firm. I have had Brian and Kelly both represent me in now three seperate cases. They are men of integrity that are very prompt to answer questions and get back to you on important matters. They have always been well organized and stayed on top of the important information relevant to my cases. ...

      Loyd Camp
      • img
      • img
      • img
      • img
      • img

      Timothy Alexander did an exceptional job handling my divorce case. He was extremely prepared, very informative, and he made sure I was always kept in the loop. His professionalism, guidance and empathy tremendously helped during what could have been a much more difficult time. I was so pleased with the final outcome and ...

      Donna DeTomaso
      • img
      • img
      • img
      • img
      • img

      Highly recommend this law firm. Andrew McAlester goes above and beyond for his clients. He’s very resourceful and prompt in communication. I always refer Mr. McAlester to my family and friends in their time of need because I trust his judgement and I know he has his clients well being at the forefront of everything.

      William Hawthorne
      • img
      • img
      • img
      • img
      • img

      Tim Alexander represented me during my divorce. His compassion, empathy and communication during the process helped keep additional stresses out of an already stressful situation.

      C Grucza
      • img
      • img
      • img
      • img
      • img

      I highly recommend this firm. I mainly worked with Andrew McAlester. Andrew was super helpful and courteous during a very stressful situation that I found myself in. Thanks for everything!

      Dante Martinez
      • img
      • img
      • img
      • img
      • img

      Timothy Alexander is an amazing lawyer. He helped me with everything I needed to do to get my divorce final in a very short period of time. I always try to refer to him when anybody asks for a divorce lawyer. Thank you for everything you’ve done.

      Autumn Colson
      • img
      • img
      • img
      • img
      • img

      Kelly & Brian helped us in our child custody case and I am very pleased by their work. Our case ended up last almost 2 yrs due to COVID, however they were very easy to communicate with and constantly kept us up to date on our case and the courts. I would highly recommend them if you are needing a great custody lawyer ...

      James Homerstad
      • img
      • img
      • img
      • img
      • img

      Mr. Alexander was the utmost professional. He was timely in his communication and very thorough in his answers. His approach helped make a difficult situation tolerable. One thing I greatly appreciated is that he did not just tell me what I wanted to hear. He would offer suggestions and allow me to make the final decisio ...

      Heather Varon
      • img
      • img
      • img
      • img
      • img

      Kelly & Brian were amazing attorneys. I came to them when I really needed help with child custody issues, and they were committed to reaching the best possible outcome. I am writing this to express my most sincere thanks, and gratitude for their professionalism. They stuck by me through the last year in dealing with ...

      Misty Benson
      • img
      • img
      • img
      • img
      • img

      Things happen and you need someone to tell it to you straight. Andrew McAlester is someone I trust to help me navigate through these difficult times.

      Phuc Lam

    Related Posts