Undisclosed Assets After Divorce

Texas law dictates that parties going through the process of legally ending their marriage must disclose all of their assets so that the courts can make a just and right distribution of any community property. Once a court issues a final judgment in divorce proceedings, parties typically cannot take issue with the division of marital assets and debts. There are exceptions, though, such as when a party uncovers undisclosed assets after divorce. If you believe your former spouse hid property from you during divorce proceedings, you have the right to seek relief, and you should talk to an attorney as soon as possible. The trusted Dallas divorce lawyers of McClure Law Group take pride in helping people protect their interests in family-law proceedings, and if we represent you, we will help you fight in pursuit of a just outcome.

In Texas divorces, property either spouse acquires during a marriage is considered community property and is subject to division in a manner the trial court deems just and right in divorce. There are few exceptions to the general rule, such as property obtained via gift, descent, or devise, damages granted in a personal injury lawsuit, other than those that represent lost wages, and property expressly deemed separate in a prenuptial or marital agreement. Typically, the courts will divide all community property in the final decree of divorce. In some cases, however, one party will fail to disclose property that would be deemed a community asset, and the other party will not discover it until after the divorce is final.

Regardless of whether the failure to disclose a community asset was an oversight or an intentional attempt to hide property, parties who were unaware of unidentified assets have rights. Notably, the mere fact that a property was not identified or divided in a divorce decree does not impact either party’s ownership interests; in other words, both parties will usually be deemed joint owners of any undivided property. If they have an amicable relationship, they may be able to come to an agreement as to how to divide the property without involving the courts. In many cases, though, they will not be able to come to an agreement. In such instances, the Texas Family Code (the Code) allows either party to file a suit for post-dissolution partition.

If the divorce was finalized in Texas, the party seeking relief should file the partition suit in the same court that issued the final decree of divorce. As when dividing community property in a divorce, the courts can consider fault, the parties’ needs and assets, and other relevant factors when determining how to divide property in a post-dissolution partition proceeding. Assets that might be divisible after divorce include retirement funds, personal and real property, vehicles, income, and tax refunds.

It is important to note that only community property that existed at the time of the divorce and was not identified in the final decree of divorce is subject to division in a post-dissolution partition proceeding. In other words, parties cannot file partition actions to modify a court’s division of property in the underlying divorce.

Parties who believe that their former spouse failed to disclose community property prior to the divorce must act promptly, as the Code dictates that they have two years from the time their former spouse denies their rights to the property to file a partition action.

When a party discovers their former spouse’s undisclosed assets after divorce, they may fear they have no recourse, but fortunately, Texas law offers relief for people who find community property that was not included in their divorce decree. If you need assistance with a divorce matter, it is smart to consult an attorney to evaluate your options. The capable Dallas lawyers of McClure Law Group are adept at obtaining favorable outcomes in divorce matters, and if you engage our services, we will diligently seek the best legal result available in your case. Our main office is in Dallas, and we can meet clients for consultations at our Collin-County office in Plano. We regularly help people navigate divorce proceedings in Dallas, Rockwall, Fort Worth, McKinney, Frisco, Richardson, Irving, and Garland. We also represent parties in family-law matters in cities in Dallas, Rockwall, Collin, Tarrant, Denton, and Grayson Counties. You can contact us by calling us at 214.692.8200 or using our online form to set up a confidential meeting.