Which Financial Transactions Are Off-Limits While Your Divorce Case Is Pending?

Divorce can be an escape from a marriage plagued by conflicts about money.  Unfortunately, things sometimes get worse before they get better.  In the simpler cases, you can resolve the problem through a few frank discussions with your divorce lawyer, followed by mediation sessions where your lawyer negotiates with your spouse’s lawyer, since it is obvious to everyone that you and your spouse will get nowhere by arguing with each other.  In the worst and most complicated divorce cases, the judge must decide not only how to divide the marital property when the divorce becomes final, but also how much money each spouse can spend and what they can spend it on.  If you and your spouse are struggling to finalize your divorce because you cannot even agree on who is responsible for which expenses in the short term, contact a Birmingham divorce lawyer.

Try to Hit the Pause Button on Your Finances During Your Divorce

Even in the simplest divorce cases, the parties must submit financial disclosures about their separate income, their marital and separate assets and debts, and their expenses.  Unless there is a compelling reason to do otherwise, the court bases its equitable distribution decision on the couple’s financial situation as described in the financial disclosures, that is, the way it was when the parties filed for divorce.  If possible, you should maintain the financial status quo during your divorce case.  Do not make major purchases or take out new loans.  Keep paying the mortgage on your house unless and until the court orders you to sell it or refinance the mortgage.  The court sometimes orders the higher income spouse to pay pendente lite alimony while the divorce is in progress, in the interest of maintaining the financial status quo, even if the court does not award alimony after the divorce becomes final.

If your financial situation changes substantially during the pendency of your divorce, such as if you lose your job or become unable to work, the court may have to make additional findings about your financial circumstances so that it can distribute the marital property and debts fairly.  This could add time and expense to your divorce case.

It Is Not Marital Misconduct If You Spend Marital Funds on Divorce-Related Financial Obligations

Some high conflict divorces involve allegations that one spouse spent money excessively, sold marital property at a loss, took on additional debt, or transferred money to family members after the other filed for divorce.  This is marital misconduct, and it can affect the court’s decision on equitable distribution.  It is not marital misconduct, however, if you sold property or went into debt in order to fulfill divorce-related obligations, such as pendente lite alimony or legal fees.

Contact Peeples Law About Property Division in Divorce

A Birmingham family law attorney can help you resolve conflicts about finances, so you can avoid unnecessary delays and expense in your divorce case.  Contact Peeples Law today to schedule a consultation.

Source:

scholar.google.com/scholar_case?case=16121832379751117899&q=divorce+garden&hl=en&as_sdt=4,61,62,64&as_ylo=2014&as_yhi=2024