Can You Get in Trouble for Selling Assets During a Divorce?

Divorce is a challenging process, especially when it comes to dividing marital property. You may wonder if selling your assets during a divorce can lead to legal trouble. The short answer is yes, but the specifics depend on various factors, such as timing, jurisdiction, and intent behind the sale.

You should never sell an asset during the divorce process without discussing it with a lawyer first. Get in touch with a reliable divorce attorney at Moskowitz Law Group today to learn your rights when it comes to the sale of marital assets during the divorce process.

Legal Implications of Selling Marital Assets

During a divorce, Courts typically issue orders to prevent spouses from selling, transferring, or otherwise disposing of marital assets. These orders are designed to maintain the financial status quo until the Court can equitably divide the spouses’ marital property. Violating these orders can result in significant legal consequences, including contempt of Court, financial penalties, or adverse inferences at trial.

Intent Matters

The intent is crucial in determining whether selling assets will get you into legal trouble. If someone sells an asset to undermine their spouse’s claim to that asset, the Court may view this as an unlawful conveyance. This means that the spouse intentionally disposed of property to attempt to prevent their spouse from receiving their fair share. These actions can lead to penalties, including reversal of sale, financial compensation to the non-offending spouse, or other legal sanctions.

Exceptions and Legitimate Sales

Not all asset sales during a divorce are problematic. Some sales might be necessary or legally permissible. For instance, selling assets to cover routine expenses like rent, utilities, or groceries may be allowed, so long as the other spouse provides consent. Similarly, a legitimate sale can be made after a spouse obtains permission from the Court to sell certain assets. The spouses may also mutually agree to the sale and how to divide the proceeds. A common example of this is when spouses mutually agree to immediately list their house for sale and divide the net proceeds instead of waiting until the divorce is finalized.

Best Practices to Avoid Legal Trouble

If someone needs to sell assets during a divorce, they should consider these best practices to stay on the right side of the law. First, always seek legal advice before deciding to sell property or assets.

Additionally, individuals can obtain Court approval as an option, and when in doubt, they can file a motion with the Court for permission to sell the asset. It is essential to be transparent about all transactions and ensure that the other spouse is aware of the intentions. One should note that very good reasons must be given for the Court to order the sale of marital property before the divorce is finalized. The Court usually tries to avoid selling property before the divorce is final.

Next, people should maintain detailed records of all sales, including reasons, amounts, and how the proceeds were used. A dedicated property division attorney can help their client avoid any legal trouble.

The general rule of thumb is that you should never sell a marital asset before the divorce is final unless you have the consent of your spouse, a court order, or your attorney advises you may do so.

Connect With Our Team for Help Navigating the Sale of Assets During Your Divorce

Contact our seasoned divorce attorneys for help with asset division and sales during a divorce. We can offer advice on safeguarding your property and ensuring that you adhere to legal requirements throughout the legal process.

At Moskowitz Law Group, we can navigate these complex issues and work to achieve a fair resolution for you. Schedule your initial consultation with us today.