If you are going through the divorce process, you and your spouse will likely need to make financial disclosures. If the court is assisting with asset division, it needs to know what assets you own jointly.
During this process, it is important to gather documentation and look at any evidence, especially focusing on spending changes. If your spouse has substantially increased their spending during the divorce, or even in the months prior to the divorce, it can be a red flag.
Why is this an issue?
In some cases, people who know they are going to get divorced attempt to dissipate marital assets. They are just trying to spend those assets down. They do this in an effort to keep them out of property division.
In some ways, this is similar to hiding assets. It is also a red flag if your spouse gives money away, for example, especially to a family member. They may just be trying to hide the money and then get it back from that family member after the divorce has concluded.
But you also want to look for increased spending, especially if your spouse is a high earner. They may be intentionally spending the money on themselves so that they do not have to divide it with you, planning to earn that money back after the divorce has been finalized. But since the money they are spending is a marital asset that you also own, there may be steps you can take to protect the funds that should have rightfully been yours.
This is certainly a complex financial issue that can change the dynamics of a high-asset divorce. Be sure you know exactly what legal options you have.