Why you should avoid excessive spending during divorce

by | Oct 4, 2021 | Divorce

Spending money during divorce is inevitable. It will take months to resolve everything, and you have a mortgage to pay, food to buy and transportation needs. Sure, you have to divide your assets with your spouse, but the Court can’t fault you for spending some of that money along the way. 

When you run into problems is when you begin spending excessively. Your spouse may claim that you’re just doing it to keep them from getting the money. They may equate it to fraud and ask for compensation from the Court. This is especially true for things that only benefit you and not the family. 

An example of unnecessary spending: The lavish vacation 

For instance, imagine that you have wanted to take a vacation, but you haven’t gotten around to it. Your spouse asks you for a divorce before you book everything. 

However, you decide to go on your own. You spend a few weeks overseas, spending tens of thousands of dollars. 

Your spouse can then argue that you essentially spent their money on your vacation. They may claim that they should have gotten a portion of that cash. By spending it on something that cannot be refunded and that cannot be divided, you have taken the assets that should have gone to them. They can request to get their percentage of your vacation spending taken out of your other assets during the split. 

A complicated process 

As you can imagine, sorting all of this out is complex, and you may feel you did nothing wrong. That’s why it’s so important to understand all of the legal options you have.