Divorce is a financial turning point. It changes how every dollar is earned, spent, and managed. All financial activity from the marriage and during the case may be examined by the court. Bank statements, credit card records, and even routine spending can become evidence if questions arise about income or credibility.
Washington courts issue automatic orders that restrict financial actions once a case begins, and those orders remain in effect until the case is resolved. Any transfer or withdrawal outside ordinary living expenses can be questioned. Withdrawals made without agreement or court approval, even with good intentions, can lead to penalties or reduce your credibility with the judge.
A sound financial strategy focuses on protecting income, maintaining credit, and managing cash flow within the court’s rules. That means tracking accounts, paying necessary bills, and communicating about money decisions through proper channels. Attorneys often work with forensic accountants, tax experts, and financial advisors to review records and uncover hidden or missing information.
This page explains how to protect your paycheck, business income, and credit while preparing for financial independence after divorce. With deliberate planning and professional advice, you can safeguard your finances, preserve your reputation, and maintain stability as you transition to the next stage of your life.
➡For general information about divorce visit our page Divorce in Washington State
➡ To learn more about how property is divided during divorce visit our page Property Division in Washington State
➡To learn more about alimony and spousal support visit our page Alimony and Spousal Support in Washington State
Protecting Income and Cash Flow
How can I protect my paycheck or business income during divorce?
Open a separate account for your earnings and keep clear records of all deposits and withdrawals. Continue paying household expenses as ordered, but track every transaction to show transparency and protect your credibility.
Can my spouse take money from our joint account during divorce?
Either spouse can access joint accounts, but once a divorce is filed, most Washington counties issue an automatic temporary restraining order (ATRO) that prevents either party from hiding assets, changing insurance, or cutting off financial support. Normal household expenses and legal fees are allowed, but large or unusual withdrawals may be challenged. Either party can seek an agreement or court-approved temporary order to permit financial changes while the case is pending.
Should I close joint credit cards or bank accounts?
Closing or freezing joint accounts can help prevent new debt, but it must be done carefully. Once a divorce is filed, both parties are subject to court orders—such as an automatic temporary restraining order (ATRO)—that prohibit financial changes without permission. Any action taken without court approval, or any unusual activity before filing, will be closely scrutinized and could be used against you.
How do temporary financial restraining orders work in Washington?
When a divorce petition is filed, an automatic restraining order prevents either spouse from transferring, hiding, or borrowing against assets except for normal expenses. Violations can result in contempt or sanctions.
Can I still use joint funds to pay bills or hire an attorney?
Yes. Ordinary living expenses and reasonable legal fees are allowed under the restraining order, but large or unusual withdrawals may require agreement or court approval.
Transparency, Discovery & Hidden Assets
How can I find out if my spouse is hiding money?
Discovery tools such as subpoenas, interrogatories, and bank record requests can trace hidden funds. Attorneys may also use forensic accountants to track transfers and recover concealed assets.
What happens if one spouse lies about money or income?
Lying about finances during divorce can have serious consequences. Courts may reopen final property awards under Civil Rule 60(b)(4) if fraud or concealment is later discovered, and may also impose financial sanctions or attorney fees. Once credibility is damaged, it often affects every future issue in the case.
Can I be penalized for hiding money or moving assets?
Yes. Hiding or moving assets in violation of court orders can result in contempt findings, financial sanctions, and in extreme cases, jail time. Knowingly giving false information under oath can also constitute perjury under RCW 9A.72.020, a felony offense. Full transparency protects both your case and your reputation.
Budgeting, Credit & Debt Protection
How can I protect my credit during divorce?
Your credit may take a temporary hit during divorce, especially if finances were already strained. Avoid closing or freezing joint accounts on your own — that can be portrayed as financial control or abuse. Instead, monitor balances, make agreed-upon payments, and document all financial actions and communications. Cooperation and transparency protect both your credit and your credibility in court.
What if my spouse runs up debt before or during divorce?
Not all spending during divorce is treated the same. The key question is whether the expense benefited the family or only one spouse. Courts can address questionable or wasteful spending through property division or reimbursement, but what seems reckless to one person may appear reasonable to another. Discuss each concern with your attorney before accusing your spouse of financial misconduct — the details and timing matter.
Should I open new accounts in my own name?
Individual accounts can improve record-keeping and help rebuild credit, but they must be set up transparently and in compliance with any court orders (including an ATRO). Use new accounts for your current earnings and routine bills while honoring agreed or court-ordered payments on joint obligations. Do not move or close joint funds without written agreement or a temporary court order, and document every step with your attorney’s guidance.
Timing & Long-Term Financial Planning
What should I do financially before filing for divorce?
Gather account statements, pay stubs, and tax returns; set aside funds for immediate living expenses and legal fees; and avoid large financial moves until you’ve spoken with an attorney.
How can I keep my retirement or investments from being drained during divorce?
Monitor withdrawals closely and confirm that no loans or early distributions occur without consent. Temporary orders and detailed financial disclosures help preserve these assets until division.
➡ For more about retirement and other property visit Property Division in Washington State
What’s the smartest way to manage taxes during and after divorce?
Coordinate filing status, dependency exemptions, and property transfers with a tax professional. Planning ahead avoids double taxation and unexpected liabilities when the decree is entered.
Can I withdraw money from a 401(k) or IRA during divorce?
Early withdrawals trigger taxes and penalties and can be treated as dissipation of assets. Only withdraw with agreement or court approval; most divisions occur later through a QDRO under 26 U.S.C. § 414(p).
What happens if my spouse withdraws from a 401(k) or IRA during divorce?
Courts can order repayment or offset through other assets. All withdrawals are traceable, and intentional depletion of marital funds can lead to sanctions or unequal property awards.
Behavioral & Emotional Money Traps
How do emotions affect financial decisions in divorce?
Fear, anger, or guilt can lead to impulsive choices—overspending, hiding money, or settling too quickly. Slow down, verify facts, and make financial moves only after professional review.
What financial red flags should I watch for during divorce?
Unexplained withdrawals, new debts, or missing mail are warning signs. Report changes to your attorney immediately and secure copies of all joint financial records.
Next Steps: Protecting Your Financial Stability
Financial stability during divorce depends on planning and transparency. Every decision—from paying bills to transferring funds—should be deliberate, documented, and consistent with court orders. The most successful outcomes come from those who stay organized and act early to understand their financial picture.
An attorney can help you interpret temporary orders, identify potential risks, and work with accountants or other financial experts when needed. Good preparation not only protects your income but also builds credibility with the court.
Divorce does not have to erase your financial progress. With a clear plan and professional guidance, you can preserve what you have built and create the foundation for a secure financial future.
In divorce, money and integrity are tested at the same time. We make sure you keep both.
Reviewed by Attorney Zachary C Ashby, Pacific Northwest Family Law, November 2025.