Protecting Your Financial Interests in a Divorce

When people come to see me about divorce, they often want to know how to safeguard their financial interests during the process. As a divorce lawyer, this is one of my primary roles. As you contemplate divorce or begin the process, following these guidelines will make a significant difference in ensuring that I can give you the best advice and representation:

• Know Your Assets and Liabilities
• Limit Major Transactions Once You File
• Provide Full Disclosure
• Maintain the Financial Status Quo

Know Your Assets and Liabilities

It is important to make sure that you have a full understanding of your financial picture, including your current budget, financial assets, liabilities, income, expenses, savings, and where your assets are located. It is common for one spouse to be more knowledgeable than the other. If you are not involved in managing your finances, it’s perfectly fine to ask your spouse about them. Be honest. If they’ve kept you in the dark, ask them to sit down with you and explain.

Provide Full Disclosure

The last people you want to lie to are your attorney and the judge. I encourage my clients to tell me everything, from conduct to financials. It’s almost impossible to hide assets. If it’s hidden, we’ll find it. If incorrect transactions have been made, now is a good time to correct them and we can guide you on the best way to do that. I would rather have all the information ahead of time because my advice is obviously based on that information. If you’re not telling me something, then my advice may not be accurate.

Once you file for divorce, try your very best to continue to live the same financial life as before you filed.

Limit Major Transactions Once You File

Neither you nor your spouse should unnecessarily spend money or move financial assets just because you are going through a divorce, especially if it is with the intent to reduce your marital estate. As a general rule, once you file for divorce, don’t engage in transactions outside of the ordinary course of family business, and don’t transfer assets. If this happens, we’re going to find out sooner or later as we go through the process.

We can also challenge any unusual transactions that happened ahead of the divorce if we suspect that they were made in anticipation of filing. For example, if someone transferred, say, a million dollars to their brother, we might challenge that.

Maintain the Financial Status Quo

Once you file for divorce, try your very best to continue to live the same financial life as before you filed. Basically, just keep doing what you’re doing, and don’t do anything crazy. I can’t undo in a day what you and your husband or wife have done in 15 years. You will need to try to maintain your financial status quo as much as possible while we work through the divorce process.

Final Word

When clients seek my advice on divorce, safeguarding their financial interests is often a top concern. Doing so requires preparation, knowledge, and professional support. By taking proactive steps and working closely with a trusted lawyer, you can navigate this challenging time with greater confidence and security.