Blog Post

Preparing for a Divorce 101: Avoid Improper Spending and Large Cash Transactions

 

Divorce cases can become complicated where there are claims of improper spending dissipation of marital assets. Here are some ways to avoid these claims as you prepare for your divorce case.

Trial courts are permitted to remedy a situation in which one spouse is found to have dissipated marital assets. Dissipation “requires financial misconduct involving marital assets, such as intentional waste or a selfish financial impropriety, coupled with a purpose unrelated to the marriage.”
Finan v. Finan , 287 Conn. 491, 499 (2008) (internal citation omitted). Such misconduct “must occur either: (1) in contemplation of divorce or separation; or (2) while the marriage is in serious jeopardy or undergoing an irretrievable breakdown.” Id. at 508-09.

Once the divorce has started, you and your spouse will be subject to the Automatic Orders. The Automatic Orders provide, in relevant part, at Section 25-5(b)(1) of the Connecticut Practice Book:

Neither party shall sell, transfer, exchange, assign, remove, or in any way dispose of, without the consent of the  other party in writing, or an order of a judicial authority, any property, except in the usual course of business or for customary and usual household expenses or for reasonable attorney's fees in connection with this action.

A violation of this order may result in a finding of contempt, among other punishments. What constitutes a violation of this order, however, is usually case specific, and often boils down to what is and has been a customary and usual household expense for you or your family.

The best way to protect yourself from claims of dissipation or violations of the Automatic Orders is to avoid improper spending if you are considering divorce or are in the middle of the divorce process. This is not the time to spend $100,000 at the casino or purchase jewelry for your new girlfriend. A court will not look kindly on you for making these types of expenditures if the divorce is imminent or has already started, and the court has the ability to punish you for this type of spending.

Large and frequent cash expenditures before the divorce may also appear suspicious and can often be difficult to explain months later at a deposition or court hearing. If possible, pay by credit card, check or wire. It does not hurt to keep a paper trail of your spending before and after the divorce has started.

Issues of improper or excessive spending can make any case contentious. If you have questions about your spending during the divorce, including what is considered appropriate spending, or if you have questions on how to stop your spouse’s inappropriate spending, contact the lawyers of Ferro, Battey & Eucalitto, LLC.

 

people talking
November 12, 2024
Litigation is a process by which each party to the divorce is represented by an attorney. The experienced lawyers at Ferro, Battey & Eucalitto, LLC can help you with your case by advising you, advocating on your behalf, negotiating a settlement, and more.
Divorce concept. Law and Justice background. Judge gavel on with two golden wedding rings
September 3, 2024
If you're meeting with a divorce lawyer for the first time, you may have questions about the process. Let the experienced attorneys at Ferro, Battey & Eucalitto, LLC assist you with your divorce.
By proadAccountId-412835 July 15, 2024
Like other assets in a divorce, cryptocurrency is subject to division among both parties. At Ferro, Battey & Eucalitto, LLC, we are here to help guide you through the process. Click here to learn more.
Who Pays for College After a Divorce?
By proadAccountId-412835 May 29, 2024
Learn more about Connecticut statutes that allow a court to order one or both parents to pay for a child’s college expenses. The experienced divorce and child support attorneys at Ferro, Battey & Eucalitto, LLC can help you with issues relating to educational support orders.
By proadAccountId-412835 March 6, 2024
Ensure the needs of your children are properly met with an in-depth parenting plan. At Ferro, Battey & Eucalitto, LLC, our child custody attorneys are here to help parents draft and enforce those plans. Click here to learn more.
How can Text Messages and Other Communications be Relevant in My Divorce Case?
September 7, 2023
Text messages, e-mails, and social media communications are becoming more and more relevant in divorce cases. The attorneys at Ferro, Battey & Eucalitto, LLC can help you learn more about how your electronic messages can be used or protected in your divorce.
August 4, 2023
Learn about effective strategies for a smooth transition in child custody matters. Ferro, Battey & Eucalitto, LLC can help ensure your child’s well-being.
child hugging adult
May 10, 2023
Click here to learn about the child custody process in the state of Connecticut. The child custody attorneys at Ferro, Battey & Eucalitto, LLC can help guide you through it.
using pen on documents
February 20, 2023
Learn more about the legality of recordings to be used in a divorce case in Connecticut. The Attorneys at Ferro, Battey & Eucalitto, LLC can help you with understanding what recordings can be used.
family divorce
October 25, 2022
If you’re preparing for a divorce or going through one, it’s important to think about how your property will be divided. Let the attorneys at Ferro, Battey & Eucalitto, LLC help you navigate the complex process of property distribution in your divorce case.
Show More
Share by: