Financial Restraining Orders
Is your spouse causing financial problems or putting your credit at risk?
When do you need a financial restraining order during divorce?
These and other questions like “Can my spouse drain our joint bank account?” might be plaguing you during divorce. Financial worries are common when a couple is divorcing. Emotions are often strained, and confusion runs rampant, creating challenges.
When you have concerns, it’s wise to seek guidance from a divorce lawyer early on. An attorney can help you determine whether financial misconduct exists and guide you in protecting your assets. Let’s take a look at some possible situations.
Shared Access to Accounts
Most married couples have joint accounts. Until the court issues temporary orders or a final property division through a final decree of divorce, spouses both use the account to cover ordinary expenses.
Separate Your Accounts
One solution might be to create a separate bank account by opening an account in only your name. Your paychecks and other income sources during divorce can go into that account. It won’t stop your spouse from spending money from the joint account. However, at least the money you’re earning during divorce is not accessible. Some counties have standing orders restricting such actions, so it is best to contact a knowledgeable attorney before separating accounts.
Financial and Temporary Restraining Orders
Temporary orders are another type of court order your attorney can request during your divorce. They set the parameters for handling finances while divorce is ongoing and until the court issues the final divorce order. Temporary orders address the following types of issues:
Making unnecessary withdrawals- Withdrawing and spending large amounts of money without proper notice and accounting
- Transferring, selling or getting rid of property
- Terminating insurance coverage for you or your children
- Cancelling or modifying insurance policies
Can you freeze your joint accounts?
No, freezing a joint account is not something a bank can do. The bank does not enforce the court order; the court does. However, the court can issue orders to prevent withdrawals that both parties don’t agree to. It is the spouses’ responsibility to comply with the court order. That said, consent for financial actions should be mutual.
Financial and Temporary Restraining Orders
Texas has the option of a temporary restraining order, called a TRO. A judge can issue this type of financial restraining order, which can prevent your spouse from doing the following:
- Making unnecessary withdrawals
- Withdrawing and spending large amounts of money without proper notice and accounting
- Transferring, selling or getting rid of property
- Terminating insurance coverage for you or your children
- Cancelling or modifying insurance policies
Can you freeze your joint accounts?
No, freezing a joint account is not something a bank can do. The bank does not enforce the court order; the court does. However, the court can issue orders to prevent withdrawals that both parties don’t agree to. It is the spouses’ responsibility to comply with the court order. That said, consent for financial actions should be mutual.
What are temporary orders?
Temporary orders are another type of court order your attorney can request during your divorce. They set the parameters for handling finances while divorce is ongoing and until the court issues the final divorce decree. Temporary orders address the following types of issues:
- Temporary spousal support
- Exclusive use of the family home or vehicles
- Limited access to certain accounts
What else can you do to protect your finances?
Aside from taking legal actions through the court, here are some actions you can take yourself to protect your finances:
- Keep thorough financial records. File and organize all your financial records, which includes bank statements, bills, and credit card statements. Also, document any communication you have with financial institutions about individual or joint actions. Make detailed notes of irresponsible behavior on the part of your spouse.
- Monitor and protect your credit. Keep an eye on your credit and request a yearly credit report. Monitor any unusual or irregular activities. You can also inform creditors about your situation as a form of credit protection. In addition, you do not have to go through the court to initiate a credit freeze with the three major credit bureaus (Experian, Equifax and TransUnion). A freeze can prevent your spouse from opening a new account or line of credit in your name and abusing you financially.
Discuss your financial concerns with an experienced divorce lawyer
Find out how we can help you address financial concerns you have about your divorce. We are glad to answer your questions, explain legal options and provide effective guidance to protect your financial interests.
Call 940.566.0606 to schedule an appointment.
Reach out to us
DTX Family Law
525 S. Locust Street, Ste. 100
Denton Texas 76201
Phone: 940.566.0606