Are Marital Assets Frozen when Going Through a Divorce?
Many couples preparing to separate may have the question: what happens to assets during a divorce? Generally, during the divorce proceeding itself, no action is taken against assets. The assets continue to be held either separately or jointly. Once the divorce is finalized, assets are awarded or divided according to agreements or court order. Despite this, it should be understood that in most states it’s unlawful to move or dissipate marital funds once divorce proceedings have begun. Unknowingly, many couples try to hide money before a divorce. If you feel your marital assets are in danger, you can submit a petition for a judge to freeze assets.
Is There A Penalty For Hiding Assets In A Divorce?
Hiding assets before divorce is never a good idea under any circumstances. Not only is it unlawful to lie under oath, but the court or your spouse will likely find the assets during the course of the divorce and this will negatively impact you during the proceeding. If you have concerns about your assets during a divorce, talk with a Portland divorce lawyer who may submit a motion to have them frozen.
Can I Withdrawal from a Joint Account During Divorce?
In Oregon and many other states, withdrawals from a joint checking account are restricted under an Automatic Temporary Restraining Order. This order is automatically put in place once the Petition for Dissolution of Marriage is filed. The restraining order is figurative as the banks or other institutions are not notified of the proceeding. It may be that you should talk to your attorney about a specific court order prohibiting any withdrawals from certain accounts to ensure they are preserved. Therefore, technically you cannot withdrawal funds during a divorce, but there are many exceptions to this. Before you spend any more outside of the normal course of living your life, you’ll want to discuss it with your divorce lawyer first. Otherwise, you could find yourself facing legal repercussions or a hostile spouse that will worsen the divorce situation. Some spouses will need to weigh the risks of withdrawing assets during divorce before proceeding begins.