Are you worried your spouse is spending down your marital savings, giving away large gifts to others or hiding assets as you face divorce? In Texas, the law takes these activities seriously. A spouse who commits fraud on the community estate can face significant consequences.
Proving your spouse committed financial wrongdoing
When one spouse disposes of community funds unfairly or without the other’s knowledge, they are committing fraud and breaching their fiduciary duty. Examples include gifting large sums to a romantic partner, spending on unnecessary luxury items and gambling away funds.
If you suspect financial misconduct, you must prove it. Gathering substantial evidence, such as receipts, credit card records and bank statements can show the questionable use of funds. While not all poor financial decisions are fraud, reckless or secretive spending raises red flags. The courts will investigate these expenses and determine whether the spending was for a legitimate marital purpose.
Reconstituting the estate
Should you successfully prove your spouse’s fraud, the courts will compute for the reconstituted estate. This refers to the total value of the community estate if the fraud never occurred. Depending on the established amount, the judge will make a decision to compensate the wronged spouse and place them in the financial position they would have been.
Taking control of your financial future
As soon as you start having suspicions about your spouse, you need to act quickly. The earlier you take action, the better you can put a stop to your partner’s fraudulent actions. Protect your financial interests by collecting your documents and knowing your legal rights.
