Guarding Against Property Destruction in a California Divorce

December 22, 2011
By Thomas M. Huguenor on December 22, 2011 1:53 PM |

Divorce is often a messy and emotional ordeal, and it can bring out the worst in some people. When a couple has built up a substantial marital estate, one spouse can do considerable damage in a moment of anger, perhaps seeking a sense of revenge or just a moment of "victory." Actions like running up a credit card bill, emptying a bank account, or even withholding child support or visitation with a child may offer some momentary satisfaction, but ultimately only hurt everyone involved. California law provides some protection against such actions, but a person going into a divorce can also take steps to protect themselves against the potential vindictiveness of a soon-to-be ex-spouse.

When a person files a petition to dissolve a marriage in California, the law immediately imposes an Automatic Temporary Restraining Order (ATRO) that protects the parties, their children, and their property while the case is pending. The ATRO applies equally to both parties, and it remains in effect until the court enters a final judgment or another order terminating or modifying the ATRO, or until the parties dismiss the divorce suit.

An ATRO prohibits both parties from removing their child or children from the state without either the other spouse's permission or a court order. It prohibits them from selling or otherwise disposing of any property, whether that property belongs to the marital community or is owned separately by one spouse. It also prohibits the spouses from incurring any indebtedness or pledging any property as collateral. Spouses cannot change the beneficiary designations on any insurance policies without consent, nor can they cash in any policies. They also cannot close or substantially draw down any bank accounts.

The spouses are allowed to spend money, incur debts, or transfer property if it is strictly necessary for living expenses or divorce-related attorneys' fees. They are also permitted to make modifications to their wills, since most divorcing spouses would probably want to make a few changes as to whom they designate as an heir. Violations of these prohibitions could result in a contempt order from the court, with all of the potential penalties that carries.

Unfortunately, all the court injunctions in the world may not stop an angry soon-to-be ex who is eager to misbehave. Lynnette Khalfani-Cox of Fox Business Network offers tips on how to guard against what she calls “insurance revenge” during a divorce. In extreme situations, a spouse may purposely cause damage to the other’s house, car, or other property to create insurance problems and other financial difficulties. She recommends changing door locks and alarm codes to prevent sabotage, and keeping track of auto title documents and license plates. A person worried about shenanigans by their spouse can send a “notice of adverse interest” to their insurance carriers, so they will be on notice of potential problems. She also recommends that each spouse designate one another as irrevocable beneficiaries on life insurance policies prior to divorcing, as a means of making certain that their children will have a source of support.

San Diego board-certified divorce lawyer Thomas Huguenor has 35 years of experience helping people through the divorce process. For a free and confidential consultation, contact us online or at (858) 458-9500.

More Blog Posts:

California Divorce Report: When Is A Gift Not A Gift? San Diego Divorce Attorney Blog, September 12, 2011

San Diego Divorce Analysis: How to Navigate the Family Court System, San Diego Divorce Attorney Blog, August 24, 2011

What Is the Cost of a California Divorce? San Diego Divorce Attorney Blog, August 8, 2011

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