Once you file for divorce, it’s important to keep an eye on any financial transactions. This includes your spouse’s spending habits.
Long-term, of course, you’ll need to separate your financial accounts. You need to close down shared bank accounts and open up new accounts for yourselves. But this isn’t going to happen right away and divorce can take months, so you still want to watch how your spouse is using the family finances to determine if any type of fraud is occurring.
Dissipating assets
One example of financial fraud during a divorce is if your spouse is trying to dissipate family assets. In other words, they’re trying to use the money as quickly as they can, buying assets that cannot be exchanged or returned. This way, they benefit from that money before they have to divide it with you.
For example, you may have had $50,000 in a bank account. If it was split evenly, you’d each get $25,000. But your spouse may try to spend $30,000 before the divorce, meaning that you’ll get just $10,000. By dissipating family assets, they have deprived you of roughly $15,000 – and they got to enjoy spending the money.
Hiding assets
Another thing to look for is any financial transaction that is unexpected and involves a person your spouse knows. For instance, they may transfer the $50,000 directly to a family member or a close friend. This is simply a tactic to hide assets and keep them out of the divorce. Your spouse may say that they’re paying back a loan or something of this nature, but they’re actually planning to get the money back from their friend after the court case ends.
If you are in a complicated financial divorce, take the time to consider all of your legal options.