Wilson Whitaker Rynell

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972-248-8080 DALLAS
713-830-2207 HOUSTON
512-691-4100 AUSTIN
wilson whitaker rynell attorneys and counselors at law logo
972-248-8080 DALLAS
713-830-2207 HOUSTON
512-691-4100 AUSTIN

Fraudulent Transfers of Assets to Third Parties in Texas

ATTORNEYS IN DALLAS

Detect and address fraudulent transfers in divorce cases with expert assistance. Protect your assets and rights effectively. Learn more today.

Fraudulent Transfers of Assets to Third Parties

Community property division is a crucial aspect of divorce proceedings in Texas, where the court determines a just and proper division of community property, taking into account the rights of each spouse. Fraudulent behavior, such as hiding assets or transferring community property to third parties, can impact the property division. In a marital context, fraud is defined as any wrongful act by one spouse that affects the division of assets. Even if a person does not intend to deceive their spouse, their actions may be considered fraudulent if they are inherently unfair.

Under Texas law, spouses owe each other a fiduciary duty, which requires any disposition of community property to be fair. If a party transfers community property to a third party without the other spouse's knowledge or permission, it is presumed to be constructive fraud. To determine whether a party engaged in constructive fraud, the court considers factors such as the relationship with the third party, the percentage of the estate the transferred asset represents, and any justifying circumstances.

If the court finds that a party has engaged in fraudulent transfers of assets, it must calculate the depletion of the community estate's value and determine the reconstituted estate's worth. The court must then divide the value of the reconstituted estate fairly and properly, which may include granting equitable or legal relief. Such relief may involve awarding the aggrieved spouse an appropriate share of the community property remaining after the fraud, a monetary award, or both.

Marital Property in Texas

In Texas, spouses possess the authority to manage their separate property, which constitutes any assets owned prior to the marriage, or those considered separate by a prenuptial or postnuptial agreement. This includes assets acquired through gift, inheritance, or will, and damages awarded in a personal injury lawsuit, except for those representing lost wages. In contrast, community property is jointly owned by both spouses. Any property that either spouse obtains during the marriage, which is not separate property, is considered community property. Generally, both spouses have the right to manage, dispose of, and control community property.

Speak with an Experienced Divorce Attorney

Divorce is a highly emotional process, but it does not justify fraudulent behavior by one spouse to deprive the other of community assets. If you are faced with such a situation, the experienced lawyers at Wilson Whitaker Rynell can provide the necessary guidance and resources to help you achieve the best possible outcome in your case. 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.

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In order to best prepare yourself during the divorce process, it is vital that you have a qualified divorce attorney by your side. Our divorce law firm is dedicated to providing knowledgeable, professional, and effective legal counsel for all types of family and divorce matters. When you work with our experienced Dallas family law attorneys, you can trust that we will have your best interests in mind.

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