When going through a divorce, it is crucial to be transparent about all assets and financial information. Attempting to hide assets during a divorce in Texas can lead to serious legal consequences.
In this post, you will learn about the potential penalties for hiding assets in a divorce, why it is never a good idea to try to hide property or funds from your spouse or the court, different ways your spouse may be hiding assets from you, and how your attorney can uncover those assets and hold your spouse accountable.
The Importance of Full Disclosure in Divorce Proceedings
In a divorce, both you and your spouse are required to fully disclose all assets, debts, and financial information. This process, known as discovery, ensures that the division of property is fair and equitable.
When spouses hide assets during their divorce, they are not only violating the law but also undermining the integrity of the legal process.
Hiding assets can take many forms, including:
- Transferring funds to a secret account
- Underreporting income
- Overpaying creditors or taxes to receive a refund post-divorce
- Giving money or property to friends or family to hold until the divorce is finalized
- Purchasing expensive items that can be sold later for cash
Regardless of the method used, concealing assets is illegal in Texas, and judges tend to be harsh when someone is found to be lying to the court.
Penalties for Hiding Assets in a Divorce in Texas
If your spouse is caught hiding assets during divorce, they may face a range of consequences—everything from a slap on the wrist to serious jail time.
Contempt of Court
The court takes full disclosure very seriously. Hiding assets violates court orders and can result in being held in contempt, which may lead to fines, sanctions, and even jail time depending on how severe the judge decides that the violation is.
You are at the judge’s mercy—some judges will be lenient, and others will not. It is not something you want to test.
Perjury Charges
When you sign a financial affidavit or provide testimony under oath, you are swearing that the information you have provided is true and accurate. If your spouse lies about their assets or financial situation, they can be charged with perjury.
In Texas, perjury can be a simple misdemeanor, but it can also be a third-degree felony. Both can be punished severely: The misdemeanor can get you up to a year in a county jail while the felony can get you up to 10 years of prison time (you will also likely be fined on top of this).
Even if your spouse is not criminally charged with perjury, they can still lose credibility and trustworthiness in the eyes of the court, which could eventually lead to a much more unequal division of assets (favoring you) than would have happened otherwise.
Loss of Credibility
That loss of credibility can affect much more than the division of property—the judge may make rulings on child custody and support that do not favor the party who tried to hide their assets.
Remember that the court will always prioritize the best interests of your children. A parent who has demonstrated a willingness to deceive the court may be viewed as less trustworthy and less capable of providing a stable and nurturing environment.
Attorney Fees and Costs
Hiding assets can prolong the divorce process, leading not only to higher legal fees. On top of that, if the court discovers that your spouse hid assets, they may order them to pay your attorney fees and costs as punishment.
This can be a substantial financial burden, particularly if your divorce is already taking a long time and your legal fees are mounting.
The Importance of Working with an Experienced Divorce Attorney
If you suspect that your spouse might be hiding assets during your divorce, it is essential to work with a knowledgeable and experienced family law attorney. A skilled lawyer can help you uncover hidden assets, protect your rights, and ensure that you receive a fair settlement.
Attorneys have access to numerous legal tools that they can use to uncover hidden assets or force your spouse to reveal them. In particularly complex cases, they can even bring on a forensic accountant to dig through financial records.
Uncovering Hidden Assets in a Divorce
If you believe that your spouse may be hiding assets, there are several steps that you and your attorney can take to uncover them.
Reviewing Financial Documents
Your attorney will carefully review all financial documents, including tax returns, bank statements, and credit card statements to look for any discrepancies or unusual transactions. This can help identify any assets that may have been transferred or concealed.
Deposing Your Spouse
Your attorney may depose your spouse, which means asking them questions under oath about their financial situation and any assets they may have. If your spouse lies during the deposition, they can face perjury charges.
Hiring a Forensic Accountant
In some cases, it may be necessary to hire a forensic accountant to analyze financial records. Forensic accountants are specially trained to identify financial irregularities and trace the flow of money.
Subpoenaing Third Parties
Your attorney may also subpoena third parties, such as banks or business partners, to obtain additional financial information and documentation. This can be particularly useful in cases where a spouse has used a third party to conceal assets.
The Role of Technology in Hiding Assets
In today’s digital age, technology has made it easier than ever to hide assets during a divorce. Spouses may use electronic devices, such as computers or smartphones, to transfer funds, hide financial information, or communicate with third parties. They may also convert funds to cryptocurrency that can be hidden in a variety of ways.
If you suspect that your spouse may be using technology to hide assets, it is important to work with an attorney who is knowledgeable about electronic discovery and digital forensics.
Your attorney (or a forensic accountant) can use specialized software and tools to analyze electronic devices as they search for evidence that assets are being concealed, though this may require a court order.
If Your Spouse Is Hiding Assets, We Can Help
If you suspect that your spouse may be hiding assets, we are here to help.
At Ilarraza Law, we are committed to protecting your rights and will work hard to uncover any hidden assets your spouse may have.
Contact us today to set up your initial consultation or call us directly at (214) 646-3253.
