Having your finances in order is essential if you’re planning on getting divorced or in the middle of one. One of divorce proceedings’ most common financial mistakes is using your spouse’s money. Using community or shared funds for personal needs or wants during a divorce can cause serious problems. There may be financial issues for the other spouse, and the spouse spending the money could also find themselves in legal trouble.
What Are Community Funds in a Divorce?
Community funds are the funds that are supposed to be divided equally between the two spouses. For example, if both parties contributed to a checking and savings account, it’s likely that the money should be divided equally. But when one person takes it and spends it, that becomes a severe issue. It could leave the other spouse unable to cover their expenses, especially if they have to find other living arrangements. Spending the community funds is frequently done out of spite or anger.
Reimbursement is Generally Required
If one spouse spends all the community funds, the court will require that spouse to reimburse what should have gone to the other spouse. The bottom line is that the spending spouse will need to give the non-spending spouse half of the amount they took out of community funds and spent. That’s not always easy, especially if the sum of money is significant. In some cases, the spending spouse may have to liquidate personal assets to return the money they spent.
Making other financial concessions to the non-spending spouse can be part of the divorce proceeding. For example, if the spending spouse doesn’t have the money to give back, the non-spending spouse may be given something else in the divorce to compensate for the money they should have received. If you’re thinking about spending money during your own divorce proceeding, seeking legal guidance before doing that can protect you from repayment concerns later.
Work With an Attorney to Avoid Financial Mistakes During a Divorce
Spending money that doesn’t belong to them is a common mistake in many divorces, whether out of anger or simply because they don’t understand that it’s not allowed. But it’s also a mistake that can (and should) be avoided. Not only does it cause issues for the other spouse, but the spouse who spends the money may have trouble replacing it when the court orders them to do so.
Understanding what you’re allowed to do in a divorce is very important, and finances are a big part of that. If you have questions about your divorce process, what you’re allowed to do, and what kinds of things you should avoid, getting answers from an attorney is very important.
At Mohajer Law Firm, we offer a free consultation, so we can sit down with you to discuss your options and concerns. Reach out to us today to get the information you need regarding your divorce case.