Are you getting divorced and arguing about money with your soon-to-be ex? Inequity in income, assets, and earning potential is common, especially if one spouse is the primary homemaker or stay-at-home parent. Sometimes, the higher-earning spouse wants to keep every penny they’re making. In these instances, it’s not surprising that there would be divorce fraud.
When you need to protect yourself and your financial interests, having savvy representation from experienced Frisco divorce attorneys is critical.
Financial disclosure in Texas divorce
Your financial disclosure document is an exchange of information to support fairly divided assets. It also helps make determinations for child support and alimony. Items in the disclosure include but may not be limited to:
- Deeds for real property (including the family home, vacation home, and rental properties), leases, and any liens
- All bank accounts (checking, savings, investments)
- Retirement plans, including 401k, IRAs, retirement investments, and pension plans
- All debts: Credit cards, mortgage, personal loans, and vehicle loans
- Tax returns, 1099 forms, W-2s, pay stubs, and other proof of income
- All insurance policies, including life insurance
Failure to fully disclose your financial status could be divorce fraud. If you’re looking at your spouse’s disclosure and thinking, “This isn’t enough,” you may be right. It’s not uncommon for one spouse to hide assets or be misleading about their income or earning potential.
Spotting signs of divorce fraud
There are a few clear indications of divorce fraud that experienced divorce attorneys will spot immediately. But, you may notice certain behaviors during your marriage that are red flags for hiding assets:
Your spouse is controlling over marital finances
They may “handle all the bills,” and you trust them. If your access to shared accounts is restricted or your requests to see statements about accounts, your mortgage, or investments are denied, then there’s a good chance there’s something your spouse doesn’t want you to know about.
Your spouse has a history of lying, especially about money
This could include hiding purchases, having secret credit cards, or even secret bank accounts.
They may ask you to sign legal documents you don’t understand or haven’t read. Some spouses may coerce the other to sign a financial document or agreement they’re unsure about. If you can prove that a pre-or post-nuptial agreement was signed under duress, a judge may invalidate it.
They waste marital funds
Wasting marital funds could mean anything from gambling using community money to spending money on an affair partner. They could even be spending it on addictions like drugs and alcohol.
Look for these red flags
Even when you do have full access to marital funds and asset statements, keep an eye out for:
- Cash transactions (no paper trail) or substantial cash withdrawals
- Moving money around to different accounts
- Valuable assets are missing
- Having a separate account but using communal accounts to pay for personal expenses
- Having credit cards or bank accounts you didn’t know about
Some couples maintain separate finances and individually contribute to household bills and shared expenses. However, if your spouse is secretive about their finances, it warrants suspicion.
I think my spouse is committing divorce fraud. Now what?
If you don’t have a lawyer, you need to get one, and fast. Divorce lawyers have resources you don’t have, as well as more experience spotting divorce fraud and dealing with it. Turn over everything you have to your lawyer, including your financial documentation, your spouse’s disclosure, and anything else you’ve uncovered on your own.
Your lawyer may enlist the services of a forensic accountant if they believe it’s worth the expense in your case. Forensic accountants are experts in finding hidden money, but their expertise can be expensive.
However, if they uncover $50,000 in hidden assets and you get half, then you’ve more than paid for their services.
If your lawyer uncovers fraud, they can bring it to the judge’s attention. Not only will your spouse have to disclose everything, but the judge may award you the hidden assets, impose fines, or even file criminal charges against your ex.
Protecting yourself from divorce fraud
Protect yourself during and after a divorce with the advocacy of an experienced Frisco divorce lawyer. Our team has seen countless instances of divorce fraud and knows what to look for.
We’re dedicated to protecting your interests in divorce and ensuring you receive your fair share. Call (214) 423-5100 today to schedule a consultation.
