Published on September 14, 2023
Concealment and Fraudulent Transfers of Real Estate in Texas Divorces
Divorces often involve complex property issues—and sometimes, one spouse tries to hide assets or transfer property to others in bad faith. In Texas, these acts can amount to fraudulent transfers or concealment of marital property. If you’re concerned your spouse is attempting to improperly shield real estate during a divorce, Guerra Days Law Group can help you take swift legal action to protect your share of the estate.
What Is a Fraudulent Transfer?
In the divorce context, a fraudulent transfer is when one spouse transfers property—like a house, land, or rental property—out of their name to avoid dividing it with the other spouse. This may involve:
- Transferring title to a friend or relative
- Selling property for far below market value
- Creating a sham transaction or fake lien
- Gifting real estate to a third party right before or during the divorce
These transfers are often designed to reduce the value of the marital estate and deprive the other spouse of their rightful share.
What Counts as Concealment?
Concealment involves intentionally hiding assets from the other spouse and the court. Common tactics include:
- Failing to disclose property in inventories or discovery
- Placing title in someone else’s name temporarily
- Deliberately omitting real estate from court disclosures
- Delaying recording of deeds to avoid detection
Whether by omission or deception, concealment can trigger serious legal consequences.
Legal Remedies for Fraudulent Transfers
Texas courts have powerful tools to unwind fraudulent transfers. If proven, the court may:
- Void or reverse the transfer
- Award a disproportionate share of the remaining estate to the innocent spouse
- Impose fines, contempt findings, or sanctions
- Freeze assets or issue temporary restraining orders
Under the Texas Family Code and Uniform Fraudulent Transfer Act (UFTA), courts can also examine the badges of fraud, such as lack of consideration, insider transfers, or suspicious timing, to determine intent.
What You Must Prove
To challenge a fraudulent transfer, the innocent spouse must show:
- The real estate was community property or otherwise subject to division
- The transfer was made without fair consideration or in anticipation of divorce
- The purpose was to hide, diminish, or defraud the other spouse’s interest
Evidence may include bank records, emails or text messages, property records, or testimony from witnesses familiar with the transfer.
Temporary Injunctions and TROs
To stop fraudulent activity quickly, your attorney can request a Temporary Restraining Order (TRO) or Temporary Injunction. These orders can:
- Prohibit the sale or transfer of real estate during the divorce
- Freeze accounts or assets connected to property
- Require parties to maintain the status quo until the court rules
Acting early is critical—once real estate is sold or title is transferred, recovery becomes more difficult (but not impossible).
Can a Transfer Be Reversed After the Divorce Is Final?
Possibly. If a fraudulent transfer is discovered after divorce, a party may file a motion for post-judgment relief or a separate lawsuit to set aside the transaction. However, these cases are harder to win without strong evidence and a clear legal basis.
Spouses Working Together with Third Parties
Fraudulent transfers often involve cooperation from friends or relatives. For example, a spouse might deed property to their sibling temporarily with the understanding it will be returned after the divorce. Texas courts will look through these arrangements and may hold the third party accountable as well.
Why Fraudulent Transfers Backfire
Judges frown on dishonesty in divorce. If a court finds one spouse engaged in fraudulent conduct, it can:
- Sanction them financially
- Award the wronged spouse a larger portion of the marital estate
- Refer the matter for criminal investigation in extreme cases
In short, trying to game the system usually backfires. Transparency is not just expected—it’s legally required.
How Guerra Days Law Group Can Help
If you suspect your spouse is hiding real estate or has fraudulently transferred assets, Guerra Days Law Group can act quickly to protect your rights. We offer:
- Immediate TRO and injunction request