When dealing with the finances of high-net-worth individuals, offshore bank accounts often come into the picture. People usually have questions about which funds they need to disclose and whether there’s any money they can keep to themselves. Getting information from these offshore accounts is more difficult but not impossible.
In the video, Attorneys Tyler Monahan and Heather Ogier of Turner-Monahan PLLC discuss handling offshore accounts in high-net-worth divorce cases. All case evaluations are in the light of Texas Family Law. This content is for educational purposes only.
Where Do Offshore Funds Originate?
The money in these accounts usually comes from within the United States and is transferred through bank accounts, Venmo, Zelle, and other apps. Tyler Monahan and the team are skilled at tracking these transfers to reveal where the money has moved, despite the challenge and additional cost related to subpoenas it might involve.
The Strategy of Tracing Assets
Asset tracing is a crucial technique in these scenarios. It helps figure out the source of the money and where it ended up, especially when it goes offshore. This process often requires the expertise of specialists in the field.
Atty. Tyler Monahan explains that finding hidden money is challenging, like finding a mythical pot of gold. However, with a knowledgeable attorney who knows how to trace assets, it’s possible to uncover offshore accounts or identify money that was there before it disappeared.
Utilizing the Family Code for Reconstitution of the Estate
Atty. Tyler Monahan mentions an interesting tool: the “reconstitution of the estate” under the Family Code. This approach is used when it’s clear that a significant sum, like $500,000, was part of an estate but has since vanished without a trace.
Even if the exact whereabouts of the money remains unknown, this process allows for a hypothetical reconstruction of the estate’s value as if the money were still present. This legal strategy can prove essential in ensuring fair asset division during divorce proceedings.
Collaborative Efforts in Financial Analysis
Turner Monahan’s team’s strength lies in its collaborative approach to financial analysis. Each member brings their expertise to the table, allowing for a comprehensive examination of financial issues. This collective effort is particularly effective in cases with a financial angle, enabling the team to explore various scenarios and uncover hidden assets. Atty. Tyler Monahan’s blend of legal and financial knowledge plays a vital role in navigating the complexities of high-net-worth divorce cases, ensuring a thorough investigation and fair resolution of asset division.
Texas Family Code Insights
The Texas Family Code plays a pivotal role in guiding how assets, including those held in offshore accounts, are managed during divorce proceedings. One of the key statutes within this legal framework is the concept of “community property,” which presumes that all property acquired during the marriage belongs equally to both spouses. However, when assets are hidden offshore, the challenge of proving this equality arises.
Sections of the Texas Family Code relevant to our discussion include those on the division of property (Chapter 7), which mandates a just and right division of marital assets, and the rules around tracing separate property (Sec. 3.002).
Tracing is crucial in cases where one spouse might have transferred joint funds to an offshore account, aiming to shield them from division. The code provides mechanisms for attorneys to demonstrate that certain assets, although currently offshore, originated as community property and should be subject to division.
Furthermore, the Family Code’s Sec. 7.009, concerning the “Fraud on the Community; Division and Disposition of Reconstituted Estate,” is particularly relevant. Atty. Tyler Monahan emphasizes this statute, utilized when large amounts of money are found to have disappeared from the marital estate, potentially into offshore accounts.
Even without knowing the present location of these funds, this statute enables a court to envision what the marital estate might have looked like if those assets hadn’t been removed. This hypothetical reconstruction of the estate’s value allows the court to adjust the asset division in a way that compensates the non-offending spouse, promoting a more equitable outcome.
Sec. 7.009 specifies that if a spouse is found to have committed actual or constructive fraud on the community, the court is mandated to:
- Calculate the reduction in the community estate’s value due to the fraud and determine the reconstituted estate’s total value.
- Equitably divide the reconstituted estate’s value between the parties as deemed just and right by the court.
Additionally, for achieving a fair division of the reconstituted estate under Section 7.001, the court may provide any legal or equitable relief necessary, including awarding the wronged spouse a suitable share of the community estate post-fraud, a monetary judgment against the spouse who committed the fraud, or both.
These statutes highlight the necessity of expert legal and financial analysis in divorce cases involving substantial wealth. Atty. Tyler Monahan’s financial market experience, combined with his legal acumen, positions him exceptionally well to navigate these intricate cases. Leveraging the Texas Family Code, the Turner Monahan team diligently works to ensure all assets, no matter their location, are included in the estate’s final division.
Hire An Experienced Fort Worth, Texas, Divorce Attorney
Navigating the complexities of divorce, especially when it involves high net worth and offshore assets, demands expertise and dedication. Turner-Monahan, PLLC has supported families since 1973, offering skilled guidance through divorce and child custody matters with a commitment to integrity and personalized legal strategies.
If you’re in the DFW area and facing legal challenges related to family law, Turner-Monahan, PLLC invites you to schedule a free consultation. With their experienced team, you can explore tailored solutions for your unique situation, ensuring your rights are protected every step of the way. Schedule a free, no-obligation consultation with attorney Tyler Monahan to discuss the details.
Check our website for more information about our services. Plus, don’t forget to go through our blog to find out more regarding your case. There is tons of information on divorce and answers to unique questions like “Does A Spouse Have A Right To Property That The Other Spouse Inherited Before The Divorce?”
FAQs Regarding Divorce
Divorce cases are unique, so you will have many questions. To save you time and hassle, here are some topics that revolve around the area. For more information, contact our firm, Turner-Monahan, PLLC.
- I’m Moving Out Before The Divorce Is Finalized. What Can I Take With Me?
- Does The Texas Court Limit Visitation Due To A History Of Family Violence?
- Is My Ex Entitled To Ongoing Interest In My Defined Benefit Retirement Plan?
- What To Do When The Other Party Violates Court Orders?
Disclaimer
The commentary and opinions are for informational and educational purposes only and not to provide legal advice. You should contact an attorney in your state for legal advice concerning any particular issue or problem. You can become a client and enter the attorney-client privilege only after hiring Turner-Monahan, PPLC, by signing a written retainer agreement.
