How to Approach Divorce When Your Spouse Handled the Finances

Divorce is never easy—but when you’re in the dark about your family’s finances, this huge step becomes even more challenging. In many marriages, one spouse may take over paying bills, managing retirement accounts, and running the household budget. In some cases, this is an intentional attempt by one spouse to maintain control in the relationship. No matter who initiates the divorce, the spouse with minimal or no financial knowledge may not even know where to start. Talking to a California divorce attorney can help you get everything in order.

Having legal representation you can trust can make this emotional and painful time a little less stressful. Attorney Taylor B. Warner, a California Bar Certified Family Law Specialist, has spent her career advocating for her clients, creating tailored solutions to their family law problems, and providing the support they need when they need it most. Call our divorce law firm at 909-466-5575 to find out how we can help you.

Why Financial Imbalance Creates Stress During Divorce

Financial dependence can create intense anxiety at the end of a marriage. Some spouses even put off divorce for years because they have no idea where to start when it comes to gathering financial documents, figuring out what they have and what they owe, or pursuing a fair division of assets. They also worry about being blindsided by hidden debt or secret accounts.

For some, financial imbalances are a part of emotional control. When one spouse intentionally controls access to all financial information, they may do so in an effort to maintain their grip on their partner

But it’s important to remember that not knowing your financial status does not reduce your legal rights as you seek a divorce in California. Community property laws and disclosure requirements are there to protect you.

Financial Information to Gather

If you feel that divorce may be approaching, gathering financial records can better prepare you to meet with a divorce lawyer:

• Bank account statements
• Credit card statements
• Tax returns
• Mortgage documents
• Vehicle loan information
• Information for retirement and investment accounts
• Insurance policies

Even if you can’t access financial records, anything you can provide can help your divorce attorney identify missing documents later.

Disclosure Requirements in a California Divorce

California law requires that both spouses in a divorce must exchange detailed financial disclosures. This is an incredibly important requirement that the court takes very seriously. A spouse who intentionally hides assets, withholds important financial information, or otherwise acts in a way to ensure an unfair division of property may face consequences. In some cases, it can even affect how property is divided.

There are several forms used to streamline this process, including:

• FL-140, Declaration of Disclosure
• FL-142, Schedule of Assets and Debts
• FL-150, Income and Expense Declaration

Signs of Hidden Assets or Financial Misconduct

In some divorces, financial confusion is just a natural result of one spouse handling the finances. In others, it’s an intentional effort by one spouse to hide assets from the other. Hidden assets and bank accounts can lead to an unfair division of assets, so it’s important to be aware of red flags that may indicate financial misconduct:

• Missing account statements
• Sudden changes in banking activity
• Large cash transactions
• Unexplained withdrawals or transfers to accounts you do not have access to
• Cryptocurrency purchases
• Sales of assets far below market value
• A sudden and unexplainable loss of income

Note that these signs don’t automatically mean that your spouse is hiding assets. However, they do warrant further investigation. Your divorce lawyer may bring in a forensic accountant if they suspect financial misconduct.

Mistakes to Avoid

You aren’t the first one to be in this situation, and not knowing the details of your family’s finances doesn’t mean you aren’t entitled to your fair share. Avoid signing documents without having your lawyer look over them first, and don’t rely on verbal promises made by your spouse. Don’t move funds out of an account unless given the go-ahead by your attorney, and make sure you keep an eye on activity in your joint accounts.

Finally, don’t put off talking to a lawyer because you are concerned about the cost. When it comes to ensuring a fair division of assets that determines your quality of life after divorce, a DIY approach can easily end up costing you more than legal representation.

Take the First Step With the Law Office of Taylor B. Warner, APLC

The team at our divorce law firm is here to help you get a better understanding of your marital finances, your rights during divorce, and what comes next. Call us at 909-466-5575 or get in touch online to schedule a consultation.

Taylor Warner

Taylor has always been an advocate. Growing up the middle child with an older and a younger brother, Taylor developed a strong voice and personality and has always felt strongly about helping others. Becoming a lawyer seemed to fit Taylor’s personality and character – she is a strong leader and a bold advocate. Learn more here.