Can I Sell or Transfer an Asset Before Filling for Divorce?

By Wayne Thomas

Courts have the authority to divide property a couple owns as part of a divorce. This can lead to uncertainty over which spouse will own a specific asset, once the divorce is final. Although you may want to keep control over your property, a court has the authority to void the sale of any asset if your intent is to keep your spouse from getting it in the divorce.

Courts have the authority to divide property a couple owns as part of a divorce. This can lead to uncertainty over which spouse will own a specific asset, once the divorce is final. Although you may want to keep control over your property, a court has the authority to void the sale of any asset if your intent is to keep your spouse from getting it in the divorce.

Fraudulent Transfers

Once a divorce has been filed, some states place an automatic hold on the sale of property to ensure that the court has full disclosure of all marital assets that will be divided. Judges know that a spouse might attempt to hide assets, because the spouse knows that he is headed for divorce. For that reason, states do not allow one spouse to sell or transfer property if the intent is to keep it from the other spouse. In determining whether your transfer was fraudulent, a court will look at who the transfer was made to and how much you received in return. An example would be if, in contemplation of an inevitable divorce, you sold your ski cabin to your cousin for $1 in an effort to shield it from the divorce, and to keep it in the family. In this case, if the court finds that a fraudulent conveyance occurred, the transfer would be deemed void and the property would be subject to division during divorce proceedings.

Divorce is never easy, but we can help. Learn More
Divorce is never easy, but we can help. Learn More
Can You Sell a House Before You Finalize a Divorce?

References

Related articles

Illinois Divorce Laws on Inherited Money

Failing to understand the laws surrounding property division may cost you your inherited property following a divorce. Whether or not an Illinois divorce court will divide an inheritance between the parties comes down to whether the inheritance is considered non-marital or marital property. Generally, inheritances are non-marital property as long as they are maintained separately from marital property.

Who Gets the House in a Divorce in North Carolina?

A house is often a significant part of a family's property. During divorce, spouses likely need to negotiate the ownership of the family residence or ask the court to divide the house. In North Carolina, the state's marital property laws determine the rights of each spouse to the family home. If both spouses want the house, they may need to argue the issue in court.

Florida Divorce Laws for Removing Assets From the State

Some spouses will go to great lengths to avoid a division of property in divorce. They may deliberately remove assets from the state to put them beyond the reach of the court, but this usually doesn't work. In Florida, the court can often distribute an asset’s value, no matter where it is physically located.

Get Divorced Online

Related articles

Bankruptcy & Fraudulent Conveyance

Filing for bankruptcy allows you to eliminate some of your debt by either liquidating your assets to repay a portion of ...

Ohio Divorce Law on a House in a Spouse's Name

In Ohio, marital property is subject to equitable distribution in divorce cases. For many couples, the family home is ...

Why Is a Prenuptial Agreement a Good Idea?

Prenuptial agreements are often placed in a negative light by the media. However, provided that both parties are ...

Who Gets the Apartment in a Divorce in New York?

During a marriage, both spouses can become emotionally attached to a residence. If the couple decides to divorce, ...

Browse by category