The division of property in your Texas divorce will play a critical role in your financial future, which makes it of primary importance. This is a challenging legal issue in even the most straightforward divorces, and if your case is complex, you can expect even more complications.
If, however, your spouse attempts to intentionally deceive you in relation to your marital assets, it is a form of fraud on the marital estate that is known as financial infidelity – or cheating – that can negatively impact your financial settlement. If you have concerns about property division in your divorce, it’s time to consult with an experienced Round Rock divorce attorney.
What Financial Infidelity Looks Like
Financial infidelity refers to any form of deceit that one spouse perpetrates against the other in relation to their shared finances. Financial infidelity is more common than you may realize, and it can even be the direct cause of the divorce.
Financial infidelity is much like emotional infidelity except a spouse who engages in financial infidelity is unfaithful in relation to money rather than in relation to spousal allegiance.
Financial infidelity can take any of the following forms:
Hiding debts that were racked up without the other spouse’s knowledge
Secreting away bills
Claiming that certain assets are separate when they are not
Being dishonest about how marital funds are being spent
Covertly withdrawing money from marital accounts
Overspending without discussing the matter with the other spouse
Keeping financial secrets generally
Finances are a primary concern in virtually every marriage, and any form of financial infidelity can be more than even a relatively strong marriage can bear.
Financial Infidelity Isn’t a Crime, but It Is a Serious Problem
Texas does not recognize financial infidelity as a crime, but it does take the matter seriously when it comes to divorce. If you can demonstrate that your spouse engaged in a form of financial infidelity in the buildup to your divorce, it can lead to better divorce terms for you, including the division of your marital property, alimony, and even child custody in some cases.
Discovering an account you didn’t know about, running across unexplained bank withdrawals, or encountering a change in your spouse’s attitude toward your marital finances can all be signs that there is a problem brewing. In fact, any unexplained financial discrepancy should give you pause.
Further, if your spouse is no longer interested in frankly discussing your family’s finances, limits your access to financial information, or shuts down whenever you bring up the topic of money, you should not ignore these red flags.
Sowing Marital Discord
If your spouse is engaging in financial infidelity, it can eat away at your relationship and erode your marriage, and you may not see it coming. The crux of this kind of deceit is that your spouse is actively attempting to deprive you of something that belongs to you and your children, which can be a very difficult pill to swallow.
If you find that you are arguing more about money but your spouse isn’t interested in getting to the bottom of the matter, it can disrupt the peace in your home and in your marriage. This can lead to a breakdown in overall communications and to increased tension and anxiety – all of which can wreak havoc in your relationship.
The fact that a common cause of divorce is the way one’s spouse handles money emphasizes the importance of financial fidelity in marriage. The bottom line is that financial shenanigans in a marriage can lead to divorce and can make the just and right division of marital property in that divorce more challenging.
Don't face the challenges of financial infidelity alone. Reach out to a compassionate Round Rock divorce attorney for expert advice.
The Division of Marital Property in a Texas Divorce
While there are a range of divorce terms that can apply to your case, every couple must address the division of marital property, and this can be hard to do if your spouse is actively trying to keep you in the dark regarding your family’s finances.
Anything that was acquired over the course of your marriage is marital property that belongs to both of you, and it does not matter which one of you made the purchase or whose name is attached.
The only exceptions when it comes to marital assets are gifts and inheritances that either of you received in your name alone and the pain and suffering portion of any personal injury settlement that either of you was awarded during your marriage.
While separate property, which refers to those assets that either one of you owned prior to your marriage and kept separate during your marriage, belongs solely to its original owner, it is important to keep the following considerations in mind:
In order to claim an asset as separate, the owner must prove its separate nature.
Any increase in the value of a separate asset over the course of a marriage is considered marital.
The intermingling of marital and separate assets makes them more difficult to distinguish from one another and can weaken either spouse’s claim of separate ownership.
In other words, the division of marital property in a Texas divorce is very complicated to begin with, and if your spouse is engaging in financial infidelity, your work is cut out for you. An accomplished divorce lawyer, however, is well prepared to effectively and efficiently handle the matter on your behalf.
The Level of Deceit
Texas courts take the level of deceit employed by the spouse who engaged in financial infidelity into careful consideration when making decisions about how their actions will impact the divorce terms.
This includes the amount of money involved, the effect that the financial fraud had on the family and the wronged spouse, and the overall implications of the perpetrator’s intent and actions.
Every case involving financial infidelity is unique to the specific situation, and your resourceful divorce attorney will leave no stone unturned in their focused efforts to ensure that your spouse’s financial wrongdoing is accurately accounted for.
Reconstituting the Marital Estate
Whenever one spouse can prove that the other engaged in some form of financial fraud, such as financial infidelity, Texas courts engage in what is called reconstitution of the marital estate.
This amounts to establishing the amount of money involved in the financial infidelity and adding it back to the estate’s bottom line. This allows the assets that were removed to be returned for the purpose of calculating a fair division of property under the given circumstances.
The fact that a spouse engaged in financial infidelity can support the wronged spouse receiving a larger portion of the reconstituted marital estate. In Texas, the court has the discretion to award the wronged spouse with their rightful portion of the marital estate along with a monetary judgment that reflects the wrongdoer’s financial infidelity.
In other words, if you can prove that your spouse engaged in some form of financial infidelity, it can afford you greater leverage when it comes to a favorable division of your marital property.
Alimony
Alimony – or spousal maintenance – is less common than not in Texas, but when it applies, the fact of financial infidelity on the part of the paying spouse can enhance the terms for the recipient.
Alimony is only ordered when the divorce terms leave one spouse without the means necessary to cover their reasonable needs – in the context of the standard of living achieved during the marriage – while their ex has the financial ability to make alimony payments.
If you are entitled to alimony, the fact of your ex’s financial infidelity in your divorce could support better terms for you, which could make a serious difference in your finances moving forward.
Child Custody
While financial matters generally don’t play a role in child custody determinations, your spouse’s financial infidelity could have an effect. Texas courts are always guided by the best interests of the involved children, and this includes assessing each parent’s level of reliability and responsibility.
A parent who would stoop to financial wrongdoing in order to secure a greater share of the marital assets for themself tends to demonstrate that they are seriously lacking on both counts, which could be reflected in the child custody terms awarded.
When Financial Infidelity and Sexual Infidelity Collide
Most divorces in Texas are based on insupportability, which roughly translates to irreconcilable differences and means that the divorce is no-fault. The state also, however, allows fault-based divorces, and primary grounds for a fault-based divorce in Texas include adultery – which is a form of sexual infidelity – and cruelty.
A fault-based divorce can support improved terms for the spouse who was wronged, including the division of marital assets, alimony, and potentially child custody – when the involved circumstances jeopardize the children’s best interests.
In some cases, financial and sexual infidelity overlap, and the impact can be even more considerable. For example, your spouse can be deemed guilty of both adultery and financial wrongdoing if they were having a sexual affair with someone other than you and spent a significant amount of money in the process. Examples of this brand of spending include:
Buying extravagant gifts
Going on lavish vacations
Wining and dining
Paying for elaborate evenings on the town
Splashing out for fancy hotel-room stays
These costs can add up quickly and can deplete the size of your overall marital estate.
FAQ
The answers to the questions that trusted divorce lawyers hear most often regarding financial infidelity might help you get a better handle on your own case.
What is financial infidelity?
Financial infidelity refers to any form of unfaithfulness that’s related to your marital finances, and it translates to financial deceit. Trust is the base of every strong relationship, and if your spouse is up to no good when it comes to your finances, it weakens the bonds of your marriage.
This can increase the risk of divorce, and it ensures that the fair division of your marital property in the event of a divorce will be that much more complicated.
What should I do if I suspect my spouse of financial infidelity?
If you are heading in the direction of a divorce and you suspect financial infidelity on your spouse’s part, you shouldn’t delay consulting with a well-respected divorce attorney.
Taking a wait and see attitude could lead to serious financial consequences that can be exceptionally difficult to prove without the focused legal guidance of a determined divorce lawyer in your corner.
What signs should I be on the lookout for?
While no two cases of financial infidelity are alike, there are certain signs that are commonly associated with this form of fraud on the community. A prime example is if your spouse’s attitude toward money seems to have changed for no apparent reason, such as if they will no longer discuss marital finances with you.
Secrecy regarding money is another red flag, and if you discover any hidden debts, accounts, or purchases, it’s time to pay attention. Your formidable divorce attorney has the legal insight and resources to help you get to the bottom of the matter in your case and to protect your financial rights in the process.
Look to an Experienced Round Rock Divorce Lawyer for the Help You Need
Brett Pritchard at The Law Office of Brett H. Pritchard is a formidable Round Rock divorce attorney who has an impressive track record for exposing financial infidelity in the cases that he ably handles. He ensures that his valued clients’ divorce terms adequately reflect this form of fraud on the community estate.
Because your divorce terms will guide your future, you shouldn’t put off contacting or calling us at 254-781-4222 to schedule a free consultation and learn more about what we can do to help you today.