Preserving the Financial Status Quo During a Divorce Proceeding
In most marriages, and in most divorce proceedings, one spouse has more access to and information about the marital assets and liabilities than the other one. This inequity can often lead to abuse or exploitation, as the party with greater knowledge may be able to hide, transfer or spend assets without the knowledge of the other party. In an effort to promote fairness and minimize the risk that one party will get an uneven share of marital property or debt, most states, including New Jersey, require that the financial status quo remain.
This blog post provides an overview of how to make that happen. If you have additional questions or concerns, contact Lyons & Associates online or call us at 908-575-9777.
The Automatic Temporary Restraining Order
When a party files for divorce, that party can also request that the court issue an order to prevent asset dissipation, and to make sure that both parties have access to funds, which will go into effect as soon as the judge signs the order.
The terms of the order may vary from case to case, but the objective is to prevent a party with access to joint financial accounts or assets from transferring, using or otherwise keeping them out of the marital estate. The order may also restrict parties from using joint credit cards or otherwise incurring new marital debt. The order will often prevent parties from changing bank accounts, selling or giving away marital assets, or changing beneficiaries on life insurance or other documents. Parties are also typically prohibited from pledging marital property as collateral for a loan or debt. If you or someone you know is worried about how their finances will be handled during divorce, then they should call Lyons & Associates.