Could your former spouse be hiding assets?

On Behalf of | Apr 9, 2021 | Family Law |

Texas couples who have found themselves in an estranged marriage may prepare to undergo the process of a divorce. When this happens, all marital assets will need to be reported, valued and split up between both spouses. Unfortunately, an estranged spouse may try to hide marital assets for personal gain.

The various ways that people can conceal assets

Family law professionals may help you discover just where some of these assets could be hidden. In most cases, estranged spouses will hide various assets in one of four different ways. In the first three scenarios, the person will claim that the asset was lost, deny that it ever existed in the first place or have it transferred to a third party. In the fourth scenario, the person will create false marital debt to gain a larger share of assets.

When looking for hidden assets, you should start by identifying which one of these four scenarios that your estranged spouse is likely using. This will allow you to follow a trail to determine the asset’s position. In most cases, a paper trail is still in existence to prove that the assets are not being accurately disclosed.

Start looking at your tax returns

If your spouse was always the person who handled the finances and tax returns, is it highly advisable to take a look at these tax returns when you’re going through the divorce process. You want to be on the lookout for any sort of discrepancies to show that assets are hidden. The most common places for these assets to pop up are under the categories of Itemized Deductions, Interest and Dividends, Capital Gains and Losses, Profit or Loss from Business, and Supplemental Income and Loss.

Unfortunately, going through a divorce with an estranged spouse can be both mentally and physically taxing. Since things are not likely to end amicably, you’ll need to do your best to ensure that the distribution of your marital assets is done in a fair manner. It’s a good idea to consider hiring an attorney to help you discover any hidden assets.