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What is a Financial Restraining Order?

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Posted By Cohen Family Law | January 10 2023 | Uncategorized

Financial disputes during a divorce are, sadly, prevalent. If you fear that your soon-to-be ex-spouse may act in a way that endangers your financial future, there are measures you can take that may prevent this. Seeking a financial restraining order may be advisable.

A financial restraining order may be especially helpful to keep one party from draining accounts or perhaps selling stock at a time that would cause the couple’s portfolio to suffer. The immediate desire for money can create desperate behaviors that do not make sense in the long run. This order can ensure that finances are not depleted by either party.

Define Financial Restraining Order

When you hear the term “restraining order,” your mind likely goes directly to a domestic violence situation, where one party is restricted from coming close to their former partner. A financial restraining order does not imply that there was any time of physical abuse. It simply prevents financial abuse.

A financial restraining order is not typically part of the divorce proceedings. It requires a separate filing.

Why Would You Need a Financial Restraining Order?

You may have seen evidence that your spouse is spending extravagantly and irresponsibly. Once the assets are divided, this will not be your concern, but while the assets belong to you both, you have a vested interest. You can petition for a financial restraining order to prevent all of your money from being siphoned from your account.

While this applies to bank accounts, it may also block the sale of real estate, other property, or assets. This tool allows you to protect your investments, vehicles, homes, land, farms, and businesses. Please note that a financial restraining order freezes assets for both of you.

What is the Duration of a Financial Restraining Order?

Depending on the circumstances, the court may grant a financial restraining order that only lasts 30 days. But, it may apply to the property throughout the divorce until it is legally divided. The order will forbid both parties from certain financial decisions. Some of these are listed below:

  • Closing bank accounts
  • Changing beneficiaries on accounts
  • Selling property
  • Selling or trading stocks
  • Liquidating assets

It could also be designed to restrain both parties from making changes to their life insurance policies, such as changing the beneficiaries, cashing in the policies, or canceling them. An attorney who specializes in financial restraining orders will be able to answer all of your questions about the matter.

What is Allowed After a Financial Restraining Order is in Place?

The purpose of a financial restraining order is not to cause strain on either party. Both parties are still able to conduct business as usual. Paying their bills, taking care of home maintenance, buying their groceries, and paying their lawyers are allowed. The purpose of the order is so that the marital assets remain intact enough to have them divided appropriately by the court.

Contact Us Today

You need legal representation if you are concerned that your spouse may squander your assets before your divorce can be finalized. Cohen Family Law, LLC, can petition the court for a financial restraining order on your behalf. Contact us today so that we can protect your financial assets and help ensure you have peace about your finances until your divorce is complete.

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