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What happens when a spouse commits fraud when dividing assets?

On Behalf of | Dec 15, 2021 | Property Division

While most people are honest when it comes to property division in divorce, there are some people who try to hide assets or lie about their property holdings. When this happens, it is damaging to the other party.

If you discover your spouse committed fraud on your community property during your divorce, the Texas Family Code offers a specific remedy.

Reconstituted estate

Once you discover and prove fraud occurred during the division of community property, the court will figure the reconstituted estate value. The reconstitutes estate factors in all the assets missed due to fraud.


The court will then redivide the estate between you and your spouse in a fair manner. This will include the ability to assess penalties against your spouse for fraudulent actions. The court would award this as equitable relief.

The judge may do this by giving you a larger share of the community property, giving you a monetary award that your spouse must pay outside of the property agreement or through a combination of property and payments.

Keep in mind

You will have to prove your case to the court. You need to have evidence and clear and convincing proof that fraud occurred. It helps to show how it occurred and have details on the exact property included in the fraudulent activity.

During property division, you and your spouse have a responsibility to provide the court with details about all assets. If either of you tries to hide assets or lies about them, it can be fraud that could lead to a new property division hearing where the person responsible for the fraud faces penalties.