What Can You Do if Your Spouse Hides Assets Before a Texas Divorce?

 Posted on August 26, 2026 in Asset Division

In a high-asset divorce, money can start moving quickly when the marriage is coming to an end. A spouse may drain an account or make unusually large purchases before divorce papers are even filed.

Texas law gives courts ways to account for assets that a spouse improperly wasted or hid before a divorce. If you notice suspicious financial activity during your divorce in 2026, a Grapevine, TX high-asset divorce attorney can help you protect your financial interests.

When Can Spending or Transferring Assets Become Fraud in a Texas Divorce? 

Spouses have some freedom to manage community property during a marriage. However, that does not give one spouse unlimited freedom to dispose of marital assets unfairly before a divorce.

Texas courts may treat certain conduct as actual or constructive "fraud on the community." This can happen when one spouse improperly uses or transfers community property at the other spouse's expense.

Potential warning signs include:

• Transferring large amounts of money to relatives or friends without a clear reason

• Making unusually large withdrawals from joint accounts

• Selling valuable property for far less than it is worth

• Using marital money to pay for a relationship outside the marriage

• Moving money or investments into accounts the other spouse does not know about

• Running questionable personal expenses through a closely held business

An unusual transaction does not automatically prove fraud. The court looks at the purpose of the transaction and whether the other spouse knew about or benefited from it.

How Can Hidden Assets Be Found During a Texas Divorce?

Hidden assets can often be found by reviewing financial records and using the divorce discovery process. Discovery allows an attorney to formally request documents and financial information from the other spouse.

Bank statements, tax returns, credit card records, investment statements, and business records can reveal unexplained transfers or hidden accounts. In a high-asset divorce, financial professionals may also help trace money between accounts. They can review business finances when personal and company funds overlap. These records can help show what happened to an asset and how much money was removed from the marital estate.

What Can a Texas Court Do if a Spouse Wasted Community Property?

Texas law allows a judge to account for property that should have remained in the marital estate. Under Section 7.009 of the Texas Family Code, a court that finds actual or constructive fraud calculates how much the conduct reduced the marital estate.

The court then determines what the estate would have been worth without the fraud, which Texas law calls the "reconstituted estate." For example, suppose a spouse improperly transfers $100,000 in marital funds before the divorce. Rather than simply dividing what remains, the court can consider what property division would look like had that $100,000 never been transferred. 

The judge can then make a just and right division of the reconstituted estate. The court may give the wronged spouse a larger share of the remaining community property. It may also enter a money judgment against the spouse responsible for the fraud.

Can You Stop a Spouse From Spending Assets While a Texas Divorce Is Pending?

Courts have tools to protect property while a Texas divorce is underway, which can help when there is reason to believe one spouse will keep moving or spending significant assets. A court can issue temporary financial restraining orders while a divorce is pending. The court may restrict a spouse from spending more than is reasonable and necessary for living expenses.

Temporary orders can also address who controls property or business interests while the case moves forward. Speaking to an attorney and taking action early may help protect substantial assets before the court divides the marital estate.

Schedule a Free Consultation With a Grapevine, TX High-Net-Worth Divorce Attorney

Hidden or wasted assets can affect the financial outcome of a divorce, especially when substantial property or business interests are involved. At Powell Law Offices, P.C., our attorneys bring more than 50 years of combined experience to family law matters.

We have also been listed in the Top 10 Family Lawyers in Texas since 2019. We give clients personal attention and take an aggressive approach in court when needed. Call 972-584-9382 or contact our Irving, TX high-asset divorce lawyers to schedule a free consultation.