Finances during separation and preceeding Divorce date


#1

How do finances work during separation if one spouse charges up the credit cards and/or inherits money during that time before the divorce date. I’ve been married 14 yrs.
Are all assets and bills just split 50-50 as of the divorce date?


#2

I am not a lawyer

IIRC, any money earned, inherited, spent etc after separation is that person’s separate property/debt. And, I also believe that any inheritance is separate property whether or not you’re together, unless the person “gifts” that money to the marriage (while you’re still together)

So, if the stbx-spouse charges up $20,000 in credit card debt, that belongs solely to the stbx, and if that same person inherits $30,000, that also solely belongs to the stbx. I would hope that the stbx did not use a credit card that had your name on it as well…because even though the courts will see it as a separate debt, the credit card companies don’t really care about that…and will still go after you for the $$ if the stbx does not pay it…IF your name is on that card.


#3

All credit cards are in individual names of each spouse. No cards or accounts are joint.


#4

Assets and debts are divided based on the value on the date of separation. Inheritances are not martial property and are not divided.


#5

Does that include 401Ks? My husband had at least $18k in his 401k when I separated from him. However, ED hasn’t even been addressed other than my attorney saying “we’re going to do it” and it being eluded to in the Divorce From Bed And Board papers and mediation. He’s pulling money out of that 401K as fast as he can … so what happens when ED comes around and they find that he’s spent all of the money out of that account?


#6

Yes. 401(k)s are assets. Any portion that he saved (and employer matched) during the marriage and before the separation is martial property subject to division. He will have to account for any money he removes or borrows from the 401(k).