When Texas residents decide to refinance their home or to purchase a new one, they will need to fill out a home loan application. On the application, they will need to list their monthly income. There is a warning included on home loan applications about providing information that is false. People sometimes ignore this statement and misrepresent their monthly income or net worth only to have that come back later to damage them in a divorce.
In many contested divorce proceedings, a diligent attorney will subpoena a copy of a home loan application, presenting the person’s stated income from that application in court. If the person then says that they actually make a lesser amount than what they stated on their loan application, the court will take a dim view of that. Their credibility will be damaged as well.
People should understand how loan application information can harm them, even after the home loan was approved. It is important that people honestly state their true incomes on their home refinance or new loan applications. They should also be honest with their reported income in their divorce financial disclosures. When a person is dishonest and tries to hide income or assets, the result may be very damaging in their divorce case.
In a divorce battle, people sometimes attempt to hide their assets and income. Family law attorneys may be familiar with the tactics people use to try to do so, and they may uncover the assets and income streams anyway. It is best for people to honestly disclose their financial information. Their credibility will be better protected in court and their case may ultimately be less expensive.