In many marriages, one spouse controls the family finances. This can create significant challenges when divorce begins, especially in high-net-worth families with complex assets and income streams. If you do not have a clear understanding of your household income, debts, investments, or business interests, you may be at a substantial disadvantage in pursuing an equitable divorce settlement. California law treats financial transparency as a fundamental right, but obtaining a complete and accurate financial picture takes diligence, investigation, and legal action. Early legal guidance from an experienced high-net-worth divorce attorney can help level the playing field and protect your interests as you make important decisions about property division and support.
Fiduciary Duty and Full Financial Disclosure
Spouses owe each other fiduciary duties, which require honesty, transparency, and fair dealing in financial matters. A spouse who intentionally conceals assets or otherwise acts with fraud, oppression, or malice may face significant legal consequences. In certain circumstances, California courts have the authority to award the other spouse up to 100% of the value of the undisclosed asset, in addition to attorney’s fees and other remedies.
During divorce, both parties must submit honest and complete financial disclosures regarding matters such as income, expenses, assets, and liabilities. Required information includes:
- Bank account statements
- Tax returns
- Credit card records
- Retirement account information
- Investment account statements
- Business records
- Mortgage and loan documents
- Employment and payroll records
Financial disclosures are signed under penalty of perjury, which means that lying on these forms can lead to serious consequences, including sanctions, fines, and damage to their credibility before the court
An experienced divorce attorney will carefully review financial disclosures to identify inconsistencies, omissions, or potential red flags. In some cases, Kaspar & Lugay LLP works with forensic accounting experts to uncover hidden financial information, verify the accuracy of reported assets and income, and help ensure that no significant financial issues are overlooked.
Automatic Temporary Restraining Orders in California
The moment a divorce petition is filed and served, Automatic Temporary Restraining Orders (ATROs) take effect and prohibit either spouse from:
- Cashing in or modifying insurance policies that benefit a spouse or child
- Selling, transferring, borrowing against, or disposing of community property without the other spouse’s written consent or a court order
- Spending funds or incurring debt for purposes outside of “ordinary course of business” or “necessities of life”
If your spouse attempts to drain accounts or cancel your health insurance, they may be violating a court order, which can lead to immediate judicial sanctions.
Temporary Support and Legal Fees
If your spouse has restricted your access to marital funds, you may be concerned about having sufficient financial resources for legal fees and covering living expenses for yourself and your children during the divorce process. Your attorney can immediately file paperwork to request temporary spousal support and child support. Furthermore, California Family Code Section 2030 and Section 2032 allow the court to order the high-earning spouse to pay for the other partner’s legal fees.
Economic Control and Financial Abuse
One spouse controlling the finances is a dynamic that often arises from a practical division of responsibilities, but it can nevertheless create a significant imbalance of financial control. The other spouse may be left with limited access to marital funds, financial records, or information needed to make decisions.
Financial control may be used to limit the other spouse’s independence, restrict access to money, monitor spending, prevent employment, or make it difficult to leave the relationship. These behaviors are sometimes described as financial abuse and may be relevant to claims involving coercive control under California law. Your attorney will investigate questions such as:
- Were financial records about income or investments intentionally withheld?
- Did your spouse restrict access to accounts?
- Were funds transferred before separation?
- Are there unexplained debts or missing assets?
- Did your spouse require you to ask for money or justify routine purchases?
Legal Tools for Obtaining Financial Information
Kaspar & Lugay LLP employs several different mechanisms to uncover the truth about your marital estate. We can:
- Request comprehensive financial disclosure and, when necessary, issue subpoenas to obtain financial records from banks, investment firms, and other financial institutions.
- Question your spouse under oath during a deposition regarding their finances. Any false statements made during a deposition carry legal consequences.
- Work with forensic accounting experts to meticulously analyze records, such as credit card statements, bank statements, employment contracts, compensation documents, and lifestyle and spending patterns, uncover hidden or “forgotten” assets, understated income, inflated expenses, or fabricated debt, and accurately determine the value of equity compensation, investments, stock portfolios, businesses, and other high-value assets.
- Work with private investigators to observe your spouse’s activities and document legally admissible evidence of wrongdoing. Verified information can serve as powerful leverage to resolve a divorce case through negotiation rather than trial.
Experienced Lawyers for Financially Complex California Divorces
Do not settle your divorce without knowing the full truth. High-net-worth divorces often involve complex disputes over property division, spousal support, and child support. Reaching an equitable settlement requires a complete understanding of the marital estate, including all community assets, income sources, debts, and financial interests. When financial information is incomplete, inaccurate, or difficult to obtain, experienced legal counsel can help uncover the facts and protect your rights.
Kaspar & Lugay LLP combines extensive divorce litigation experience with a deep understanding of complex financial matters involving businesses, real estate holdings, investment portfolios, digital assets, executive compensation, stock options, restricted stock units (RSUs), deferred compensation, and other high-value assets. Our firm is uniquely positioned to handle cases involving entrepreneurs, executives, professionals, investors, and business owners throughout California. Partner Brent Kaspar is a Certified Public Accountant (CPA), and Partner Arvin Lugay has represented some of the nation’s most prominent financial and banking institutions in high-stakes litigation.
Book a confidential consultation today at 415-789-5881 or contact us online to speak with our trial-proven lawyers in San Diego, Corte Madera, Napa, and Walnut Creek.
Frequently Asked Questions: Financial Control in a California Divorce
Can My Spouse Empty Our Joint Bank Account Before Divorce in California?
If your spouse withdraws community funds, they are not necessarily entitled to keep the money and may face serious legal penalties for breaching fiduciary duties. California is a community property state, which means that all assets and debts acquired during marriage generally belong equally to both spouses. Once a divorce petition is filed and served, California’s Automatic Temporary Restraining Orders (ATROs) prohibit either spouse from transferring, concealing, or disposing of community property without the other spouse’s consent or a court order. If you are concerned that your spouse may drain a joint account, contact an experienced divorce attorney as soon as possible.
What Should I Do If I Want to File for Divorce but My Spouse Controls All the Money?
If your spouse controls the family finances, do not assume that you cannot afford a divorce. California courts can order temporary spousal support and child support, and, in many cases, require the higher-earning spouse to contribute to the other spouse’s attorney’s fees. Contact an experienced divorce lawyer as early as possible. Collect as much financial information and documentation as you can, and consider opening a new bank account solely in your name.
