Spouses with valuable property, large lines of credit and shared real estate often fight about finances when they divorce. In fact, financial misconduct intended to harm one another or alter divorce outcomes is relatively common.
Dissipation occurs when one spouse takes on unnecessary debt, destroys marital property or spends marital income with the goal of diminishing the marital estate. Those preparing to file for divorce may worry about their spouses responding by maxing out their credit cards or emptying a savings account.
Can the courts help to prevent financial misconduct in the early stages of divorce?
Court orders can limit financial misconduct
The family courts issue final orders at the end of divorce proceedings. They can also issue temporary orders in the first days of the divorce process.
Automatic temporary restraining orders are commonplace in high-asset divorces. The party petitioning the courts for divorce can ask for an order freezing lines of credit and shared bank accounts. They can even ask the courts to prevent the sale of their marital home or other large assets.
Temporary orders can also help ensure shared child custody by forbidding one parent from removing the children from the state while the divorce is in progress. Those orders are subject to change as the divorce progresses, but they can limit the likelihood of misconduct that occurs as an emotional reaction to the divorce itself.
Working with an attorney before filing divorce petitions with the family courts can help people use the systems in place for their protection. Temporary orders can significantly reduce the likelihood of dissipation and other forms of misconduct common in high-asset divorces.