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Asset dissipation and divorce

Texas residents who are concerned about their spouse spending the marital assets before a divorce is final may want to seek a temporary restraining order to prevent this. However, if the person has already begun to conceal or dissipate assets, it may be too late.

At particular risk are spouses who have not worked outside the home. In a divorce, they may be dependent upon shared marital assets to establish financial security. While a high-earning person might be able to quickly replenish what they have spent, the other spouse may not be able to recover financially from the blow.

For this reason, people may need to establish that their spouse has frivolously wasted an unusual amount of money in the run-up to the divorce. they may want to retain the services of a financial professional who is skilled at uncovering what has become of assets whether they have been spent or concealed.

In a high-asset divorce, a person might employ a number of tactics to hide or spend marital property These could include not reporting bonuses or other income, creating a shell company, or falsifying payroll. If hiding or spending assets is a problem, then the couple may have to turn to litigation for property division. However, if this is not the case, then the couple might consider trying to negotiate property division with the help of their respective lawyers. This may lead to a division both people are more satisfied with, but lower-earning partners should not allow themselves to be pressed into financial arrangements that do not seem fair such as giving up their share of the retirement account.

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