Do I Have to Disclose All of my Finances During Divorce?
Over the course of a marriage, your life and the life of your spouse become intertwined, and so when you decide to separate, it is often difficult and emotional to separate everything. One important aspect of this is dividing your property and finances. Usually, couples need the help of an experienced divorce attorney who can help ensure that a fair agreement is reached.
In order to reach a divorce settlement, financial disclosure is usually necessary, and you should be prepared to disclose all of your finances. If you are found hiding assets from the other spouse throughout the divorce process, then it could result in severe penalties.
At Skillern Firm Divorce & Child Custody Lawyers, we can help you understand what you need to disclose. We will use mediation to help you and your spouse divide property, formulate a parenting plan, and more. Where mediation doesn’t work, we will advocate on your behalf in the courtroom.
The divorce lawyers here at Skillern Firm Divorce & Child Custody Lawyers truly care about your future. We will guide you through the divorce process while ensuring that your rights and needs are considered. We will take the time to find out what’s important to you so that we can do everything possible to support you.
Call Skillern Firm Divorce & Child Custody Lawyers today at (832) 688-6606 to arrange an initial consultation with a divorce lawyer.
How is Property Divided in Texas?
Texas is a community property state, which means that when a marriage ends, most of the property belongs equally to both parties. Usually, all assets acquired by either spouse while they were married is considered community property which means it is subject to division. Anything acquired before the marriage, or as inheritance, gifts, or compensation, is considered separate property and continues to belong to each individual. In order for the court to distinguish between community and separate property, it is necessary to disclose all your financial assets. There are some circumstances where one spouse may be able to retain some property as separate, which could otherwise be considered marital. Ultimately, the court aims to ensure that property division is fair and equitable, and they may consider the earning potential of both spouses and who has primary care of the children. There are a lot of factors that go into dividing property, but when you have an experienced divorce lawyer by your side, they will ensure that your rights and interests are protected. Your attorney will evaluate your assets and help you retain the assets that are important to you.
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Texas is a community property state, meaning that in a marriage, most property is owned by both spouses. Typically, all assets acquired while the parties were married is considered communal property. Individual property, which is not subject to division, can include assets acquired before the marriage took place. In order for the court to distinguish between communal property and individual property in your situation, it is necessary to disclose all the details.
COMMUNITY PROPERTY
Community property can include income from your jobs, as well as the benefits you each receive. Dividends and investments should also be considered. Communal assets typically include real estate, such as the home in which you live and any other homes you own.
Personal property that you have purchased since your marriage, such as clothing, electronics, and collectibles, is another category of assets that is legally shared. Debt incurred within the timeframe of the marriage is usually divided, too.
INDIVIDUAL PROPERTY
In some situations, you can make a case that certain assets are your personal property because you acquired them before the marriage took place. Once they are determined to be yours alone, they will not be subject to division.
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In a no-fault divorce, neither party is deemed responsible for the breakup of the marriage. In such a case, community property can sometimes be divided equally. Most people aim for a no-fault divorce because it is the least complicated, both legally and emotionally. In an at-fault divorce, one party is found to be the reason for the disunion. Reasons include cruelty, adultery, abandonment, and the conviction of a felony.
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In cases where one spouse hides assets that are later discovered, he or she might be required to give up more than half of the shared value. In some cases, the split can be as great as 70/30.
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Spousal maintenance and child support are separate issues from the division of assets, however, they do have a major impact on what the outcome of the divorce means for you. Spousal maintenance refers to periodic payments that one spouse pays to the other following a divorce.
While less common than it used to be, it is considered in cases where one spouse is unable to support themselves. Child support is determined after careful consideration of numerous factors, including each spouse’s employment status and ability to provide resources.
Initial Financial Disclosures
In accordance with Texas law, divorcing spouses must provide certain financial information to each other within the first 30 days of filing for divorce (unless a waiver is approved).
The information that must be exchanged includes documents regarding property, bank accounts, retirement plans, investments, debts, and employee benefit plans. The information must cover the previous two years or since the beginning of the marriage if the marriage lasted less than two years.
Remember, the financial affidavit is a sworn document, which means that when you sign it you are swearing that it is accurate. If you try to hide assets, then the court could award the other spouse more assets as a punishment.
Collecting Your Documents
To make your disclosure official, you will need documents pertaining to your finances and your assets. You should be prepared to submit:
- Your taxes for the past two years
- Your last 2 pay stubs
- Forms relating to real estate and other property that you own
- Statements pertaining to your bank accounts, credit unions, and retirement accounts
- Documentation that shows your credit card usage/debt
- Other paperwork of a financial nature
Giving You, Fairness, Respect, and Expertise at Skillern Firm Divorce & Child Custody Lawyers
Securing legal representation from an experienced family law attorney at Skillern Firm Divorce & Child Custody Lawyers could be the best decision you ever make. We understand the importance of the outcomes of your divorce, such as those relating to property division and spousal support, and will do everything in our power to secure your future.
Our divorce lawyers have the skill, dedication, and experience necessary to protect your rights. Everyone on our team is skilled in mediation, meaning we will minimize court costs wherever possible and help protect important family dynamics. However, we are also highly skilled in divorce litigation and will be prepared to advocate on your behalf in front of a Judge if necessary.
Give us a call today at (832) 688-6606 and arrange a consultation with a Texas divorce lawyer. We represent clients in Houston, Sugar Land, and surrounding areas.
