Common Financial Mistakes You’ll Want To Avoid During A Texas Divorce

As true as it is, divorce is not only an emotional process. It’s very much a financial one, too. Texas, being a community property state, requires careful handling of marital assets and debts. Missteps can have long-lasting financial consequences. We’ll explore…

• How hiding assets can hurt your divorce case.
• Why it’s best to continue paying joint bills and debts during a divorce.
• How an experienced divorce attorney can help you avoid critical financial mistakes.

How Can Hiding Assets During A Divorce Backfire In Property Division Court?

With all the technology of the day, hiding assets is more difficult than ever and far easier to detect. Even in cases where dishonesty isn’t suspected, attorneys typically review all available bank records. These can reveal:

• Unexplained transfers between known and unknown accounts
• Patterns of large or routine cash withdrawals
• Evidence of undisclosed investment or crypto accounts

For instance, transactions to or from platforms like E-Trade or cryptocurrency exchanges often expose hidden funds. More than this, spouses tend to have at least some idea of each other’s financial habits, such as if one spouse has a history of buying gold or stashing cash.

Courts take concealing assets seriously. If a judge finds that one spouse attempted to hide assets, they may award the other spouse a disproportionate share of the marital estate. In other words, cheaters don’t just get caught; they can be penalized seriously.

A recent well-known custody case involved a parent trying to reduce child support by claiming lower income. Investigation showed that he held both a captain’s license and a crane operator’s license, neither of which he was using. Further review of his bank records uncovered a hidden cryptocurrency account. The court ruled that he was intentionally underemployed and refused to reduce his child support.

Why Is Draining Joint Bank Accounts Before Filing For Divorce A Risky Move?

Emptying joint bank accounts before filing for divorce may seem like a way to protect yourself, but chances are that doing so will seriously backfire. If the court determines that a spouse engaged in wasteful or fraudulent transactions, particularly just before filing, it may:

• Treat those transactions as an attempt to defraud the estate
• Factor the behavior into how property is divided

Texas courts are focused on fairness. Wasting or hiding community property goes against that and, as such, could reduce your share in the final settlement.

Should I Keep Paying Joint Bills During A Divorce To Avoid Credit Issues?

Joint bills must continue to be paid during a divorce to avoid damage to both parties’ credit. In Texas, most jurisdictions issue standing orders as soon as a divorce is filed. These orders generally require:

• Continued payment of the mortgage
• Payment of utilities
• Continued payment of credit card debts and other shared expenses

The spouses can agree, or the court may order who will pay which bills, but the bottom line is that payments must continue.

With deep roots in Texas family law, Ira Z. Miller of the Law Office of Ira Z. Miller has helped countless clients navigate the financial minefields of divorce with clarity and confidence.

Backed by decades of experience, Mr. Miller understands the serious consequences of financial missteps, like hiding assets or draining accounts, and has successfully protected clients from these costly errors. His team takes a detail-oriented, strategic approach to ensure every asset, debt, and legal obligation is properly accounted for.

If you're facing divorce, let us help you safeguard your financial future with a consultation today.

Is Quitting My Job During Divorce A Mistake That Can Impact Spousal Maintenance?

Leaving your job during or just before a divorce in Texas can raise red flags, especially if it appears to be an attempt to avoid paying spousal maintenance. Courts will closely scrutinize the circumstances surrounding the employment change. They look at whether the decision to quit was voluntary, whether the person is making use of their education, trade skills, or professional licenses, and whether they are intentionally earning less than they could.

If a judge determines that a person left their job to dodge financial responsibilities, the court may still calculate support as though that person were employed. Texas judges have significant discretion to impute income based on an individual’s qualifications and work history, which means quitting a job could ultimately backfire financially.

How Can A Divorce Lawyer Help Me Avoid Major Financial Errors?

One of the most common mistakes people make during a divorce is not having a clear understanding of the full financial landscape of the marital estate. Many are unaware of all the assets and debts that make up the community property, which can lead to serious financial missteps.

A divorce lawyer helps clients gain a complete and accurate picture of their finances before any agreements are made. This includes reviewing all assets such as land, vehicles, antiques, bank accounts, and retirement funds, as well as debts like mortgages, credit cards, and personal loans. An attorney will carefully examine financial documents and property records to ensure every detail is accounted for.

How I Approach Tough Financial Truths With Compassion

Clients sometimes don’t realize that divorce includes not just dividing assets but also dividing debts. And after a divorce, it may not be financially feasible to maintain the same lifestyle, especially if the household previously relied on two incomes. For example, keeping the family home might sound appealing, but:

• Can the spouse afford the mortgage on one income?
• If the house is paid off, can they reimburse the other spouse for their share of its value, possibly by taking out a loan?

These are difficult realities. When discussing them with clients, our goal is to plan for long-term financial health. That might mean compromising on property in the short term to avoid:

• Foreclosure
• Overwhelming debt
• Living beyond one’s new financial means

Ultimately, we want our clients to succeed after their divorce, not just survive, despite how complex it may be. The decisions made during the process can shape your future for years to come. Avoiding common financial mistakes like hiding assets, quitting your job, or ignoring joint debts requires transparency, planning, and good legal guidance.

Still Have Questions? Ready To Get Started?

For more information on financial mistakes in Texas divorces, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (361) 882-7788 today.