Undisclosed Assets After Divorce

What Happens to Undisclosed Assets After Divorce

Under Texas divorce laws, any property obtained by either spouse during the marriage is considered community property and is subject to division according to what the trial court deems fair and reasonable in a divorce settlement. There are a few exceptions to this rule, such as property obtained through gift, inheritance, or a prenuptial or post-marital agreement that expressly deems it separate property, and damages awarded in a personal injury lawsuit that don't represent lost wages. In most cases, the courts will divide all community property in the final divorce decree. However, in some instances, one party may fail to disclose community assets that are later discovered by the other party after the divorce is finalized.

Regardless of whether the nondisclosure of community property was intentional or unintentional, the party who was unaware of the undisclosed assets has legal rights. Notably, the failure to identify or divide property in a divorce decree doesn't affect either party's ownership interests, and both spouses are usually considered joint owners of any undivided property. If the former spouses maintain a good relationship, they may be able to come to an agreement on how to divide the property without involving the courts. However, in many cases, they may not reach an agreement. In such instances, the Texas Family Code permits either party to file a suit for post-dissolution partition.

The Process of Dividing Undisclosed Assets After Divorce

In Texas, if a party wishes to seek relief in a post-dissolution partition proceeding, they should file a suit in the same court that issued the final decree of divorce. Similar to the division of community property in a divorce, the court can take into account various factors such as fault, the parties' assets and needs, and other relevant considerations when determining how to divide the property. Assets that may be divisible after a divorce includes income, vehicles, personal and real property, tax refunds, and retirement funds.
It is important to note that only community property that existed at the time of the divorce and was not identified in the final divorce decree can be subject to division in a post-dissolution partition proceeding. In other words, the parties cannot file partition actions to modify the court's property division in the underlying divorce.

If a party suspects that their former spouse concealed community property before the divorce, they must act quickly. The Texas Family Code requires that they file a partition action within two years from the time their ex-spouse denies their right to the property.

Speak with an Experienced Divorce Attorney

Discovering undisclosed assets after a divorce can be a distressing situation for the affected party, but fortunately, Texas law provides relief to those who find community property that was not disclosed in their divorce decree. The attorneys at Wilson Whitaker Rynell are skilled in achieving favorable outcomes in divorce cases where certain assets were not disclosed until after the divorce was finalized. Our firm represents clients in divorce cases in various Texas cities, including Dallas, Austin, Houston, Fort Worth, and all cities within Dallas County, Tarrant County, Collin County, and Denton County.