To secure a fair property division outcome under the Texas community property statute, spouses must identify the entirety of their marital estate. They must determine what property may belong separately to each spouse and what various assets are worth.
Especially when spouses have multiple streams of income and well-diversified portfolios of marital assets, accurately identifying and valuing marital property can become a very challenging process. Attempts to sidestep community property division rules immediately before filing or in response to a pending divorce case can deprive one spouse of their fair share of the marital estate.
In cases where one spouse suspects that the other may have diverted money prior to the marriage or otherwise hidden assets while preparing for the divorce, working with the forensic accountant may be necessary to ensure a fair property division outcome.
What does a forensic accountant do?
A forensic accountant is a financial professional who has specialized training and experience assessing financial records. They examine bank statements, credit card bills, and tax returns to understand the finances of a divorcing couple.
They look for discrepancies when comparing various financial documents with one another. They also help trace income and marital assets. The tracing process can validate or disprove claims that certain assets are one spouse’s separate property.
Tracing can also help identify missing and undervalued assets, as well as income diverted from shared bank accounts. Forensic accountants can also analyze the financial conduct of the spouses throughout the marriage and in the months leading up to the divorce. They could potentially locate hidden bank accounts or other attempts to hide marital property.
They can help validate the marital standard of living and any questionable transactions before the divorce that may deviate from the standard financial conduct within the marriage. All of that together can help spouses identify financial misconduct and push for a fair property division decree. The Texas community property statute does not always require a 50/50 split of assets. Judges can diverge from that standard when doing so is fair, given the circumstances.
Attempts to hide marital income could convince the courts to address that misconduct in the final property division decree. Working with a high-asset divorce attorney can help spouses protect themselves as they prepare for property division proceedings accordingly.