Dealing with a Wasteful Spouse During Divorce

 Posted on April 27, 2017 in Divorce

With divorce comes the division of debts and assets. For many couples, this can be a contentious issue. However, it may be made worse if one divorcing party has a spending problem. Assets can be depleted, sometimes significantly, which can result in a decreased settlement. Be it an intentional depletion of assets or a simple issue with knowing how to budget and spend accordingly, the following information can help you deal with a wasteful spouse during a divorce.

Why Continued Sharing of an Account May be Necessary

On the one hand, the solution to asset depletion might seem simple: just stop sharing accounts. Unfortunately, this is not always an option. In some cases, it may be difficult to untangle joint assets. As such, the assets may need to be shared until the divorce is finalized. In other cases, one of the spouses may be caring for the children but not have enough to support them; since the children should not have to suffer, sharing of assets may be required.

Protecting Yourself from Dissipation of Assets

Regardless of why the depletion of assets is occurring, it is important that you do all you can to protect yourself. For starters, speak to your attorney about closing out any joint credit card accounts and then allocating the debt to each responsible party. Granted, this may not be an option if spouses disagree on their assignment of the debt, but it is still worth considering. Alternatively, you can place a freeze on joint credit cards to stop them from being used while working through the divorce process.

Another option would be to move forward with an escrow account. While each party should open their own separate bank and savings accounts once the split occurs, an escrow account may still be needed to ensure proper support for a disadvantaged spouse or shared children. A contractual agreement, an escrow account also prevents excessive or unnecessary depletion of joint marital funds within the account.

How Our DuPage County Divorce Attorneys Can Help

If you are planning for divorce and afraid your spouse's wasteful spending could land one or both of you in financial trouble, contact The Stogsdill Law Firm, P.C. for assistance. Backed by over 210 years of combined experience, our DuPage County divorce lawyers can walk you through your options and help you decide on the one that may be most favorable. Schedule your personalized consultation to learn more. Call 630-462-9500 today.

Source:

http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2123&

http://www.huffingtonpost.com/entry/divorce-and-credit-card-debt_us_58e28f26e4b09deecf0e18bc