Divorce can feel overwhelming — both emotionally and financially. For some, the process may go beyond disagreements and enter the realm of financial abuse. Imagine trying to protect your financial stability while your spouse exerts control over money that you’re entitled to. Can your spouse legally cut you off during a divorce? What are your rights, and how can you safeguard your finances?
Untying the Knot will explore financial abuse during divorce, your legal rights, tips to protect your finances, and how mediation can be a game-changer. By the end, you’ll understand what you’re entitled to, how to approach your divorce with confidence, and how our divorce attorneys can help.
What Constitutes Financial Abuse During Divorce?
Financial abuse, or “financial exploitation,” can occur in a divorce when one spouse uses finances to control or manipulate the other. This can manifest in multiple ways, particularly during divorce proceedings. Here are some examples:
- Restricting Access to Funds: A spouse may close shared accounts, deny access to money, or cut the other spouse off financially.
- Hiding Assets: Concealing income, properties, or investments to avoid fair division during divorce.
- Manipulating Debt: Racking up debt under your name or refusing to pay joint debts to affect your credit score.
- Refusing Financial Support: Ceasing all financial contributions, even for necessities like rent or childcare.
By controlling financial resources, an abusive spouse can make the divorce process more complicated, exerting undue stress and power over the other party. But legal protections against financial abuse exist.
Divorce Rights and Financial Entitlements
One of the most common questions during divorce is, “Do I have the right to part of my spouse’s income?” The answer is yes. Laws differ by state, but most jurisdictions recognize the principle of equitable distribution of community property, ensuring that marital assets and income are divided fairly. Key legal rights to understand in divorce include:
- Equal Division of Marital Income: Regardless of who earned the income during the marriage, both spouses are generally entitled to an equal or fair share. If a spouse refuses to share this income, a court order can be obtained to ensure compliance.
- Emergency Support Orders: If your spouse cuts you off financially, you can request temporary support from the court to cover your essential needs during the divorce process.
- Asset Disclosure Requirements: Both parties are legally required to fully disclose their finances, including earnings, savings, investments, and debts. Hiding assets is illegal and is considered perjury, which can have severe consequences.
- Child and Spousal Support: If applicable, financial support for children and/or spousal maintenance (alimony) may be granted by the court.
Obtaining a court order to address financial abuse can take up to 90 days. While this process ensures legal protection, it’s vital to take immediate steps to safeguard your finances independently.
Tips for Protecting Your Finances During Divorce
Concerned about your financial future during divorce proceedings? Here are six actionable steps to secure your financial position:
1. Know Your Finances
Educate yourself about the current state of your finances. This includes understanding shared bank accounts, investments, debts, and monthly expenses.
2. Don’t Hide Money
While financial abuse may tempt you to take drastic actions, hiding money or assets is illegal and can harm your case during divorce proceedings. Transparency is key and can help you identify your spouse hiding money from you.
3. Open Separate Accounts
If you don’t already have one, open a separate bank account in your name to ensure you have control over your funds moving forward.
4. Create an Emergency Fund
Setting aside money to cover your essential living expenses (rent, groceries, transportation) can provide financial stability while waiting for legal resolutions.
5. Hire Professionals
A divorce attorney, financial planner, or forensic accountant can help you handle the complexities of divorce finances and spot hidden assets.
6. Get the Paperwork Right
Ensure all financial disclosures and documents are accurate and complete. Errors or omissions can delay your case and harm your credibility.
The Mediation Alternative: Untying The Knot Services
Traditional divorce proceedings often escalate conflicts, especially when financial abuse is involved. That’s where Untying The Knot’s mediation services can help.
Our mediation services are designed to minimize legal headaches while addressing financial disputes fairly. Think of our divorce mediator as a calm, guiding voice amid chaos, helping you resolve complex issues without the hassle of litigation. Here’s what makes us different:
Help Find Financial Freedom Post-Divorce With Help From Untying the Knot
Divorce may be difficult, but understanding and protecting your financial rights can empower you to shape a brighter future. Here’s what to keep in mind:
- Financial abuse during divorce is illegal, and there are mechanisms to stop it.
- Both parties are entitled to a fair division of marital income and assets.
- Taking proactive steps — like separating finances, getting professional help, and considering mediation — can reduce stress and protect your financial well-being.
If you’re ready to take control of your divorce, Untying The Knot offers the support and tools to make it happen. Contact us about our mediation services and start your new financial chapter with confidence.