Many couples behave in a fair and honest way regarding marital assets during a divorce, but in some cases spouses who are going through a divorce have been known to use finances in a manipulative fashion. Some spouses during a divorce have been known to destroy property, empty bank accounts, or hide assets.
In situations where a spouse is likely to conceal assets or use marital assets in a manipulative way or has been using marital assets in such a manner, courts in the state of Alabama have been known to grant financial restraining orders which prohibit a spouse from taking certain action.
Financial restraining orders prohibit one spouse from taking actions outside of the normal course of business. A court of law determines what constitutes a couple’s normal course of business by examining the couple’s financial history. Some of the actions that courts almost always tend to view as indicative of financial manipulation include removing a spouse’s name from financial documents, changing beneficiaries that are listed on insurance policies, hiding assets, destroying assets, and emptying bank accounts.
If a spouse has performed any of these types of actions, an individual should consider requesting a financial restraining order. It should be noted that even when financial restraining orders are issued, spouses are almost always allowed to use assets both to obtain legal counsel and in the usual course of business.
Upon filing a motion for a financial restraining order, a court will determine whether to grant a restraining order based upon the risk that a spouse has performed unfair or manipulative financial behavior. Courts have wide discretion in deciding whether to freeze assets because courts want to preserve resources until ready to distribute such finances as part of a divorce settlement. If a court does decide to grant a financial restraining order, this order will take immediately take effect. The restraining order will last for a specific period of time unless the order renewed by the court.
Once a financial restraining order is executed, any financial actions that are outside of the normal course of business are considered a violation of the order. Spouses who commit this type of violation are frequently faced with significant penalties, which frequently include either fines or order to pay the other spouse’s attorney fees. While the restraining order is in place, a spouse has the option of filing a request that the court either allow certain financial activity or release frozen assets.
If you have questions about financial restraining orders or believe that a spouse is attempting to manipulate finances, consider consulting about these issues with a Birmingham divorce attorney.
$2,000 -FOR- 3 months
Many divorces can be completed in this time.
$10,000 -FOR- 1 year