The asset division process of a divorce is meant to help split assets in a way that is equitable. Complicated assets, disputed ownership, and other conflicts can complicate the process, but these are all common scenarios that family law courts are equipped to work through.
However, what if one person has decided to blow as much of the marital wealth as possible in preparation for divorce? This could have a notable impact on the other person’s assets and wealth during asset division. Fortunately, the courts can also scrutinize this and adjust as needed, but only if they assess the situation and deem the expenses to be unreasonable or excessive.
What Is Considered Unreasonable or Excessive Spending in a CA Divorce?
During divorce proceedings, a spiteful soon-to-be-ex could decide to sabotage the asset division process by getting rid of as much of the marital wealth as possible. Others might simply be drowning in the stress or anxiety of divorce, and could be overspending as a means to cope with the situation. Regardless of the cause, both are considered forms of excessive spending that could require corrective action from the family law courts.
While there’s no exhaustive list as to what is legally considered excess spending, these types of purchases or habits can include:
- Shiny new car, recreational vehicle, or boat
- Expensive, extravagant, or frequent vacations
- Hambling debts
- Excessive losses with investments or the stock market
- Money spent meant to fund extramarital activities
- Other large unplanned purchases or expenses
Protect Your FInancial Interests With the Help of a Legal Professional
These days, most forms of excessive spending are documented and tracked, whether via bank financial statements, investment documentation which includes sums invested as well as losses/gains, app transaction records, and other forms of physical or digital receipts.
WIth the evidence and assistance of a legal professional, it is possible for you to surface these issues during your CA divorce. Depending on your specific situation, the courts could deem it fit to either award you a larger share of the assets, sell off any other assets to compensate you for any excessive spending, and more. In terms of an immediate resolution, they can also freeze assets while the divorce is underway to minimize the damage.
Learn more about this and other related family law issues by connecting with our experienced CA divorce attorneys. Call us at (949) 825-5245 to book a free initial appointment.