What To Do When Your Partner Is Hiding Or Spending Assets During A Divorce

When you are undergoing a divorce, you will often be entitled to a portion of the assets that you and your spouse owned. However, in some circumstances, your partner might try to waste or hide assets to reduce the number of assets that you receive. You are allowed to use some of your marital assets for day-to-day expenses such as food. However, what constitutes marital waste is the volume of assets that are wasted. Because you will need to prove that assets are being wasted or hidden, it's important to work with a divorce lawyer.

Extravagant Shopping Sprees

During a divorce, you should not use this as a moment to spend thousands of dollars on yourself. However, there are some cases where there is a justification for spending a large amount of money. For example, if you or your spouse needs to move to a new property, this may require a substantial down payment. 

However, there are several substantial expenditures that are considered to be wasteful, such as investments, new cars, a business purchase, a substantial gift to a family member or friend. If this occurs, you'll want to speak with a divorce lawyer as soon as possible. There are fortunately ways that you can stop frivolous spending, such as by having your partner's assets frozen.

Financial Restraining Orders

To freeze finances, you will need a financial restraining order. To do this, you will need to submit an emergency motion to have the assets frozen. You may be able to have your partner's bank account frozen, or you could have the court order that your partner only spends under a specific amount. 

For the money that has already been spent, your spouse will be punished and the courts will make sure that you are reimbursed. You will receive alimony or equivalent property to make up for the amount that was spent.

Hidden Assets

Locating hidden assets can be more difficult, especially if your spouse owns a business. For example, your spouse may choose to wait to strike a deal until the divorce is over. If your partner does not own a business, they may attempt to set up a trust as a way to hide assets. 

Fortunately, your attorney may help you work with a forensic accountant who can help locate financial assets that your partner is hiding or misusing so that you can make sure that you receive your portion of the marital assets.