The act of moving assets, specifically funds, from one party to another, or into a different account, in anticipation of divorce proceedings can have significant legal ramifications. For example, a spouse might move funds from a joint account into a separate account solely in their name shortly before filing for divorce.
Strategic asset allocation or dissipation prior to a divorce action can substantially influence the division of marital property. Historically, such actions have been viewed with suspicion by courts, often leading to legal challenges and potential penalties for the offending party. Understanding the legal principles surrounding marital assets is paramount in such situations.