Financial misconduct in the early stages of divorce is a common issue. Spouses sometimes try to hurt one another with intentional financial misconduct. They may also make selfish decisions that could unfairly influence property division proceedings. Some people respond to a pending divorce by hiding money. They panic, withdrawing funds from joint accounts to hold in a separate account. They might make large, unnecessary charges to shared lines of credit.
Those financial decisions, which may come from an emotional place, can diminish the marital estate and increase the debts that spouses must address when they separate their finances. A temporary court order can freeze financial accounts, including bank accounts and lines of credit.
Do the family courts in Michigan automatically issue orders freezing joint accounts?
Spouses must request court orders
While some jurisdictions automatically intervene to prevent financial misconduct during the first weeks of a divorce, Michigan has no policy requiring automatic account freezes. Instead, spouses must petition the courts to request that a judge order a temporary freeze on the access to and use of joint resources.
A temporary order issued in the early stages of a divorce can prevent one spouse from accruing debt that both spouses may technically be liable for if one defaults. A court order can prevent large withdrawal from savings accounts or attempts to liquidate investments.
People who suspect that their spouses may engage in intentional financial misconduct during a divorce may need to discuss their fears with a lawyer. Working with an attorney to file appropriate paperwork can prevent financial complications in the early stages of a pending divorce.