Divorce can bring significant financial uncertainty, especially when spouses have shared bank accounts, investments, debts, and other assets for many years. Whether you’re preparing to file for divorce or already in the middle of the process, understanding how to protect your financial interests is an important step toward securing your future.
In California, both spouses have certain rights and responsibilities when it comes to marital finances. Taking proactive steps can help prevent unnecessary disputes, protect important assets, and ensure you’re making informed decisions throughout the divorce process.
At the Law Office of Stuart E. Bruers, based in Torrance and serving clients throughout Los Angeles County, Orange County, the South Bay, and the San Gabriel Valley, we help individuals navigate complex financial matters during divorce while protecting their long-term interests.
Understand Your Financial Situation
One of the first steps in protecting your finances is understanding exactly what you and your spouse own and owe.
This includes identifying:
- Checking and savings accounts
- Investment and retirement accounts
- Real estate and other property
- Credit card balances
- Mortgages and personal loans
- Business interests
- Other significant assets and debts
Even if your spouse has traditionally managed the household finances, it’s important to become familiar with your financial picture.
Gather and Preserve Important Financial Records
Having access to accurate financial information can make a significant difference during divorce proceedings.
Consider gathering copies of:
- Recent bank and credit card statements
- Tax returns
- Pay stubs and other income records
- Retirement account statements
- Mortgage and loan documents
- Insurance policies
- Business financial records, if applicable
Keep these documents organized and stored securely. If you don’t have access to certain records, an experienced family law attorney can help you understand the legal options for obtaining them.
Should I Open a Separate Bank Account?
Opening an individual bank account may be a practical step when preparing for financial independence during divorce.
However, opening a separate account does not automatically make the money deposited into it your separate property. Under California law, income earned during the marriage and before separation is generally considered community property, regardless of whose name appears on the account.
Before transferring substantial funds from a joint account, it’s important to understand your legal rights and any restrictions that may apply.
Monitor Joint Accounts and Debts
Even when spouses separate, shared financial obligations may continue.
It’s important to monitor joint accounts and understand whether your spouse is making unusual withdrawals, accumulating debt, or missing important payments.
Pay particular attention to:
- Joint checking and savings accounts
- Shared credit cards
- Mortgage payments
- Auto loans
- Lines of credit
- Other jointly held financial obligations
Keeping accurate records can help identify potential problems before they become more serious.
Can My Spouse Hide or Transfer Assets?
California law requires spouses to disclose their assets, debts, income, and expenses during divorce proceedings.
Additionally, certain automatic temporary restraining orders generally restrict spouses from transferring, concealing, or disposing of property without written consent or court authorization, subject to specific exceptions.
If you suspect your spouse is hiding assets or making unusual financial transactions, it’s important to address those concerns with your attorney rather than attempting to investigate through unauthorized access to private accounts.
Be Careful About Major Financial Decisions
Divorce can create pressure to make quick decisions, particularly when you’re concerned about your financial security.
However, actions taken without understanding the legal consequences can complicate your case.
Before making major financial changes, consider speaking with an attorney about decisions such as:
- Selling real estate or other valuable property
- Withdrawing substantial funds
- Closing joint accounts
- Taking on significant new debt
- Changing ownership of assets
- Making large purchases
A thoughtful approach can help protect your interests while avoiding unnecessary legal complications.
Can I Request Financial Support While the Divorce Is Pending?
Yes. Depending on your circumstances, you may be able to request temporary financial support while your divorce is underway.
California courts can issue temporary orders addressing matters such as:
- Spousal support
- Child support
- Payment of certain household expenses
- Attorney’s fees
These orders can be particularly important when one spouse earns significantly more than the other or controls most of the family’s financial resources.
Why Experience Matters
Financial issues are often among the most complicated and contentious aspects of divorce. Understanding community property laws, identifying assets and debts, and making informed financial decisions can have a lasting impact on your future.
With more than 30 years of family law experience, attorney Stuart E. Bruers helps clients throughout Southern California navigate property division, financial disputes, support matters, and other complex divorce issues with practical guidance and experienced representation.
Take the Next Step
If you’re considering divorce or are concerned about protecting your financial interests during the process, contact the Law Office of Stuart E. Bruers today. We represent clients throughout Torrance, Redondo Beach, Long Beach, Beverly Hills, Pasadena, and surrounding Southern California communities, providing experienced legal guidance to help you protect your assets and move forward with confidence.