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Protecting assets during divorce: What do I need to know about hidden assets?

On Behalf of | Aug 6, 2024 | Property Division

Divorce proceedings are complex and emotionally charged, with financial disputes often at the heart of the conflict. When emotions run high, as they often do during divorce, individuals can make poor choices — such as the attempt to hide assets. In Texas, as in other states, the law requires both parties to fully disclose assets during a divorce.

What are hidden assets?

Hidden assets are funds or properties that one spouse conceals to avoid sharing them during the divorce settlement. These can include:

  • Cash hidden at home or in safety deposit boxes,
  • Investments, stocks, or bonds not disclosed,
  • Properties or real estate holdings kept off the books, and
  • Businesses and partnerships underreported or undisclosed.

It is wise to watch out for this possibility. A spouse that is overly secretive about financial matters or reports a sudden decrease in salary or business revenue may be hiding assets.

How can I find hidden assets?

The following steps can help if you think your spouse is hiding assets:

  1. Review financial documents: Look closely at tax returns, bank statements, and other financial records. Look for discrepancies or irregularities.
  2. Hire a forensic accountant: A forensic accountant specializes in reviewing financial records and can help to uncover discrepancies and hidden assets.
  3. Check public records: Property records, business registrations, and other public documents can reveal undisclosed assets.

It is important to uncover these assets to better ensure an equitable division of property.

If you suspect your spouse might be hiding assets, it is important to review financial documents carefully and consider enlisting professional help. Protecting your financial interests and securing a fair outcome often hinges on transparency and thoroughness during the divorce proceedings.