What Is Asset Concealment And Dissipation In A Divorce? 

 Posted on April 07, 2025 in Complex Property Litigation

What if you suspect that your spouse is attempting to reduce the value of your marital estate in your Texas divorce by hiding property from you and the court? What can you do if you believe your spouse is engaging in reckless spending to prevent you from receiving your fair share of the marital estate? 

Unfortunately, these foolish and illegal actions are too common in contested divorces. At Powers Kerr & Rashidi, PLLC, our experienced Texas divorce attorneys can take action if your spouse is hiding marital property or wasting assets to reduce your share of the divorce settlement. Contact our attorneys at 512-610-6199 for a legal consultation today.

Texas is a Community Property State

Texas law holds that most property and debts acquired during the marriage are community property. This means the spouses jointly own them, regardless of whose name is on the property title or who earned the money.

When a couple divorces, the court divides the community property in a just and right manner, which is not always 50/50. Because community property is divided during a divorce, some spouses may be tempted to take questionable actions to benefit themselves in the divorce agreement, such as: 

Concealing Marital Assets

Concealing assets happens when one party hides or misrepresents marital assets to prevent them from being divided during divorce. This is often done to lower the marital estate value that the family court will divide. Common examples of asset concealment include a spouse: 

• Transferring $25,000 from a joint banking account to an account in their name.

• Undervaluing or not disclosing investment property or business.

• Gifting assets to close friends or family members to hide them until the divorce is final.

• Exaggerating debts and liabilities to make the marital estate worth less.

Concealing marital assets is against the law and can trigger serious consequences, such as financial penalties, contempt of court charges, and an unfavorable division of marital property.

Asset Dissipation 

Asset dissipation occurs when a spouse intentionally wastes money and marital property. The intent is usually to reduce the amount of property that will be divided in the divorce. Asset dissipation may occur during the marriage or after separation, but before the divorce is final. Examples of wasting marital assets include: 

• Spending tens or hundreds of thousands of dollars on expensive vacations, gambling, or extravagant jewelry for a new partner.

• Selling marital property, such as real estate, at a loss or under market value.

• Running up unnecessary credit card debt on joint accounts.

In Texas, the family court may review dissipation by one of the spouses during the property division process. If you can prove that your spouse intentionally wasted marital assets, the court could award you more of the remaining marital estate.

Contact Austin, TX Family Law Attorneys Now 

One of the spouses in a divorce may try to conceal marital assets, or they could waste money purposely to ensure the other spouse receives less in the divorce. These actions are intolerable, and you have legal options if they happen to you.

Our Travis County, TX family law lawyers at Powers Kerr & Rashidi, PLLC can assist if your spouse has hidden marital property or engaged in asset dissipation. Call our family law attorneys at 512-610-6199 to schedule a legal consultation now.