Onward Intel: Large Purchases During Divorce
Potential Issues with Large Purchases During Divorce
1. Legal Restrictions
Many states impose automatic financial restraining orders during divorce proceedings. These orders often prohibit large transactions without prior court approval, even with spousal consent, to preserve marital assets until they are divided.
2. Impact on Asset Division
A large purchase may affect the division of marital property, particularly if it involves joint funds or marital assets. Courts could view the purchase as an attempt to deplete or hide assets, even if that’s not your intent.
3. Documentation of Consent
Even if your spouse agrees verbally, you may still face scrutiny from the court. Having written and notarized consent might help mitigate this, but it doesn’t necessarily override legal restrictions.
4. Perception Issues
If the purchase is seen as extravagant or unnecessary, it could create tension or complications, especially if it impacts the financial well-being of either party post-divorce.
Steps to Take Before Making a Large Purchase
1. Review Local Laws:
Check whether financial restraining orders or similar rules apply in your jurisdiction
2. Consult Your Attorney:
If you have an attorney, he or she can advise on whether the purchase is legally permissible and how it may be perceived by the court.
3. Obtain Written Agreement:
If the purchase involves marital funds, have your spouse’s agreement documented in writing to demonstrate mutual consent.
4. Consider Timing:
If possible, delay the purchase until the divorce is finalized to avoid complications or scrutiny.
When It May Be Acceptable
Necessary Purchases:
Courts are generally more lenient with essential expenses, such as replacing a car or addressing health needs, especially with mutual consent.
Non-Marital Funds:
If the purchase is made using funds that are clearly separate (e.g., inherited money or post-separation earnings), it may be less complicated.
Bottom Line:
While it’s not outright frowned upon to make a large purchase during a divorce if your spouse agrees, it can still complicate the process. It’s best to proceed cautiously, consult your attorney if you have one, and ensure transparency to avoid potential legal or financial issues.