If one spouse goes wild with marital funds before a divorce case is finalized, they could find themselves in hot water. Courts do not tend to look favorably upon spouses who attempt to deplete marital assets to secure more favorable terms in a divorce settlement. If a court finds that one spouse intentionally wasted or misused marital assets, they may choose to award a greater share to their former spouse in the divorce proceedings.
To prevent this from happening, some couples choose to sign a prenuptial agreement before getting married. This type of agreement can specify how marital assets — including marital property, retirement accounts, and other items — would be divided in the event of a divorce. Couples can also create postnuptial agreements, which serve a similar purpose.
What to do if you suspect your spouse is overspending
Check bank accounts and credit card statements
Check your bank accounts and credit card statements for unusual or unexplained charges. If you see charges for items your spouse wouldn't normally purchase, or if there are large withdrawals from joint bank accounts with no explanation, these could be signs of overspending.
Gather documentation
If you suspect your spouse is overspending, gather documentation right away. This includes bank statements, credit card statements, receipts, and any other relevant financial documents. Once you have all of this documentation in one place, it will be easier to get an accurate picture of the situation.
Speak to a financial adviser
If you're unsure what to make of the financial documents you've gathered, it's a good idea to speak to a financial advisor. They will be able to help you understand what's going on and offer advice on how to proceed.
Hire a private investigator
If you have reason to believe your spouse is hiding assets or income, you may want to hire a private investigator. A private investigator can conduct surveillance and gather evidence that may be helpful in court.
Speak with your spouse
If you have proof that your spouse is overspending, you have several options. You could try to negotiate with them and come to an agreement about how the debt will be paid off post-divorce. If this isn't possible, you could ask a judge to issue a court order preventing your spouse from using shared savings accounts and checking accounts and opening new lines of credit. You might also file for divorce on the grounds of financial misconduct.
Automatic Temporary Restraining Order
Some states set guidelines for an automatic temporary restraining order (ATRO). These court orders seek to eliminate misuse of funds by placing a restraining order on the use of marital funds and changes to insurance policies and retirement plans. If your spouse has used marital funds for the wrong purposes, a judge may hold them in contempt for violating the ATRO.
5 tips for managing your money during divorce
1. Make (and stick to) a budget
Figure out how much you need to cover basic expenses such as housing, food, and transportation. Once you calculate that number, don’t exceed it. This may mean making some changes to your lifestyle, but it will be worth it in the long run.
2. Track your spending
This goes hand-in-hand with sticking to a budget. When you know exactly where your money is going, it's easier to rein in spending as needed. There are plenty of apps out there to help you track your spending, so find one that works for you, and use it religiously.
3. Build up an emergency fund
Unexpected expenses will undoubtedly crop up, so create a cushion of savings to fall back on if you can – it will help ease your financial burden … and your mind. Aim to have at least three to six months of living expenses saved.
4. Close joint accounts and credit cards
As soon as possible, close any joint accounts or credit cards you share with your spouse. This will help prevent them from accruing debt in your name and protect your credit score.
5. Get help from a CDFA
If you're struggling to keep on top of your finances despite your best efforts, get help from a financial advisor or counselor. A professional financial planner can provide valuable guidance and support during this difficult time. Hello Divorce offers certified divorce financial advisor (CDFA) services to divorcing spouses at a flat rate, so you only pay for the time you need with a professional. Read about our CDFA services here.
At Hello Divorce, we understand how daunting and overwhelming the divorce process can be. It can be very upsetting to find your spouse has been taking more from shared checking accounts, or savings accounts, or other accounts than they should.
FAQs
How do I know if my spouse is overspending from our joint accounts?
Look for unusual withdrawals, cash advances, overdraft fees, and new or higher credit card charges. Compare statements to your normal spending and flag anything you don’t recognize.
What should I do first if I suspect overspending?
Gather proof. Download statements, receipts, and screenshots, and store them safely. Clear records help you see the scope and decide next steps.
Can I move money out of a joint account to protect it?
You can open an account in your name and redirect your income there. Whether and how much to move from a joint account depends on your circumstances and local rules, so keep it reasonable, document everything, and get guidance before making big moves.
How can I protect my credit right now?
Turn on transaction alerts, remove authorized users from your accounts, lower card limits where possible, consider a credit freeze if needed, and watch your credit reports for new accounts or inquiries.
Should I close joint credit cards and bank accounts?
Avoid abrupt closures that cause missed payments or fees. Create a plan: pay essentials, open individual accounts, then close or convert joint accounts once replacements and responsibilities are clear.
When should I involve a professional?
If overspending is significant, ongoing, or tied to hidden debts, talk with a lawyer or mediator and consider temporary financial orders. A financial pro can help you build a budget and separate finances safely.
How to Protect Your Money When a Spouse Overspends From Joint Accounts
Collect and secure documentation
Save recent bank and credit card statements, payment histories, and receipts. Note dates, amounts, and merchants so you can clearly show what happened.
Map essentials and stabilize bills
List housing, utilities, insurance, childcare, transportation, and minimum payments. Set alerts or autopay so critical bills get paid while you fix the problem.
Open your own accounts and redirect income
Open a new account in your name, update your direct deposit, and route new income there. Keep track of what remains in joint accounts.
Reduce risk on existing accounts
Lower credit limits if possible, remove your spouse as an authorized user, update online banking passwords, and turn on two-factor authentication.
Communicate boundaries and propose interim rules
Set expectations in writing about how joint expenses will be covered and ask for transparency and spending caps.
Get legal guidance and consider temporary orders
If the overspending continues, speak with a lawyer or mediator about temporary financial orders to protect your assets.
Monitor and adjust
Check statements weekly, compare to your budget, and close or convert joint accounts once new accounts are in place and bills are stable.
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