In complex divorces involving high-value assets, business entities, and allegations of hidden transfers, the court’s ability to achieve equity often depends entirely on the work of a forensic accountant. A recent decision by the Fifth Court of Appeals demonstrates how Texas courts rely on financial tracing and expert reports to evaluate the integrity of the community estate.
The Facts of the Case
The litigation involved a marriage of twenty-six years and a community estate comprised of diverse business interests and real property. The wife alleged that the husband engaged in a series of asset transfers to third parties to deplete the community estate while the divorce was pending. To address these claims, the court looked to financial tracing, the process of identifying the character and movement of funds through various accounts, to determine if the community had been defrauded.
Texas Divorce Attorney Blog


When a mother is married at the time of her child’s birth, the husband is generally presumed to be the father under Texas family law. There are two ways to rebut the presumption: with a proceeding to adjudicate parentage or with the filing of a denial of paternity along with the filing of an acknowledgement of paternity by another person. Suits to adjudicate parentage of a child with a presumed father generally must be brought by the child’s fourth birthday. There is an exception, however if the mother and presumed father did not live together or engage in sexual intercourse at the probable time of the child’s conception. There is also an exception if the presumed father mistakenly believed he was the biological father based on misrepresentations. Tex. Fam. Code § 160.607.
Some people may assume that property held in only one spouse’s name is that spouse’s separate property, but that is not necessarily the case. In Texas, property’s character is determined based on when and how it is acquired. Additionally, in a Texas divorce, property acquired during the marriage is presumed to be community property.