Divorce is financially challenging, especially when one spouse spends money recklessly during the process. Controlling this behavior is important to avoid unnecessary financial strain now and in the future.
Fortunately, the New York divorce process provides steps to help you protect marital assets during divorce.
Leverage an automatic order
When you file for a divorce in New York, automatic orders go into effect. These orders prevent either spouse from selling, transferring or hiding marital property without the other’s consent. Automatic orders also restrict taking out loans or using joint bank accounts for anything other than regular living expenses. This protects marital assets during the divorce process and ensures that no significant financial changes occur until the resolution of the case.
Open a separate bank account
Opening a separate bank account is another practical way to prevent uncontrolled spending. Keeping personal finances apart from marital assets helps maintain control over individual funds. In New York, any income earned after the divorce filing is separate property, so ensuring that it goes into a separate account helps avoid potential disputes. This also limits the other spouse’s access to joint funds.
Monitor joint financial accounts
Even with automatic orders in place, it is important to keep track of joint financial accounts and credit cards. Regularly review bank statements and credit card activity to identify any unauthorized spending. If any unusual transactions do appear, bring them to the court’s attention so they can take action to address them before further financial harm occurs.
Work with a financial expert
Consulting a financial expert can help protect marital assets and provide advice on managing finances. Financial experts offer guidance on dividing assets, protecting investments and monitoring spending during the divorce process. They can help develop a strategy to ensure that neither spouse finds themselves in a difficult financial position after the divorce.
Acting quickly is key to securing financial stability during a New York divorce. There are resources and processes in place to help you maintain financial integrity. Remaining calm and using these resources effectively will ensure you stay in control.