Destructive financial activities, such as dissipation, can occur in the early stages of divorce. One spouse might use a joint credit card until there is no more available credit. They might drain savings and checking accounts by gambling or making unnecessary purchases. Some people sell marital property for a fraction of its fair market value or give away a spouse’s assets as punishment for an impending divorce.
If you worry that your spouse will engage in wasteful or improper spending in the early stages of divorce, consider these solutions to limit financial misconduct.
Collect records in advance
Claims of unusual spending require proof based on prior habits. Spouses preparing to file for divorce and anticipating a negative response may need to collect recent household financial records and create a thorough inventory of assets.
They then have documentation outlining prior financial habits and validating the extent of the marital estate. Those documents can help prove that misconduct occurred after a divorce filing.
Request court support
The family courts frequently hear property division and support cases complicated by the intentional financial misconduct of one spouse. Parties can seek fast injunctive relief through the courts with tools like an emergent application.
Injunctions can stop harmful actions. These include emptying bank accounts, selling marital property or running up more shared debt. They help protect assets until the court decides how to equitably divide the marital property.
Address irreplaceable resources
Some items have special meaning or value. These might include wedding gifts or family heirlooms. If you worry your spouse may target these items, talk to an attorney about how to protect them. In some cases, with legal advice, you may document and move certain items to a safe place before you file for divorce.
Understand that New Jersey’s automatic restraining orders take effect upon filing. These typically prevent removal of marital property and dissipation of assets without agreement or court permission. Spouses should not remove items unilaterally after filing without attorney advice, as this could result in sanctions or unfavorable court findings.
The assets shared by spouses, the mental state of each spouse and the dynamics of the marriage are all key factors when planning to minimize financial hardship during a New Jersey divorce. Reviewing concerns with a family law attorney can help people avoid financial misconduct and push for a fair property division settlement.