Financial Manipulation in a Divorce in California

Financial manipulation is a little-known yet highly powerful tactic that a person may use to control their spouse, especially during divorce. This form of coercive control can be hard to recognize when you are experiencing it.

That is why we put together this guide on identifying and protecting yourself from financial manipulation in a divorce in California. With over a decade of experience helping clients navigate these complex and emotional legal processes, we at Bansmer Law are here to ensure you get the peace—and the marital assets—you deserve.

What is Considered Financial Manipulation in a California Divorce?

In a California divorce, financial manipulation is when one spouse:

• Uses tactics to conceal financial information
• Limits the other spouse’s access to assets
• Limits the other spouse’s accessibility to shared finances

The purpose is to control you (and your children) throughout the divorce. You see, financial manipulation is a type of domestic violence. These behaviors are meant to intentionally intimidate, manipulate, and threaten you so you remain entrapped in the marriage.

But you do have legal protection from financial manipulation in a divorce in California.

A new law was enacted in January 2021 which holds individuals accountable for financial manipulation, also known as financial abuse. (Cal. Fam. Code § 6342.5)

What are Common Signs of Financial Manipulation During a California Divorce?

Some common signs of financial manipulation during a California divorce include:

• Preventing you from finding or keeping a job
• Denying access to shared financial resources or information like bank accounts and monthly statements
• Hiding or lying about financial assets
• Exploiting or manipulating you for their financial gain
• Refusing to pay child support
• Insisting that you relinquish your paycheck or other sources of income
• Requiring you to account for every single penny spent
• Forcing you to live off an allowance
• Denying you any say in financial decisions
• Using marital funds for drugs, gambling, or an affair

Ultimately, California is a community property state. By law, any money earned or property bought during your marriage belongs to you both equally. Any of the above behaviors are unlawful attempts to manipulate you.

Identifying More Subtle Forms of Financial Manipulation in a Divorce

The list above details some of the more common overt types of financial manipulation in a divorce. But there are several subtle forms you should also be aware of:

• Transferring money or assets to their loved ones for little to no cost
• Drawing out the divorce process by hiding or failing to disclose specific details
• Opening a line of credit in your name without your consent
• Gambling away large sums of community/marital money
• Ruining your credit by running up debts and not paying them off
• Rerouting important mail such as utility bills or financial statements

It is also important to note just how prevalent financial manipulation is in a divorce. According to one recent survey, 36% of divorcees said they or their ex hid financial details during divorce proceedings. This is why protecting yourself in every way possible is so critical.

How Can One Protect Themselves Against Financial Manipulation in a California Divorce?

You can protect yourself against financial manipulation in a California divorce by:

• Hiring a lawyer with incredible attention to detail. As your attorney, we can document and block any attempts at manipulation through witness testimony, forensic accounting, and financial documentation.
• Keeping copies of essential documents in a safety deposit box. Be sure that your spouse cannot access the safety deposit box as this prevents them from hiding or obfuscating anything.
• Independently learn how much money is at play. You will need a clear, accurate picture of everything from 401(k)s to physical property. Knowing the total of your marital funds and property makes it much easier to protect yourself from financial manipulation.
• Think about taxes. Another way forensic accountants can be very helpful is by ensuring you are not saddled with assets you owe taxes on while your spouse takes the tax-free assets.

Legal Resources for Dealing with Financial Manipulation in a California Divorce

When you work with an experienced California divorce attorney like Erica Bansmer, you can take advantage of various legal resources for dealing with financial manipulation throughout your divorce.

The first is a temporary restraining order. Because California defines financial manipulation as a form of domestic violence, you may apply for a temporary restraining order. You will also have a later hearing to determine if the order becomes permanent.

As a victim of financial abuse, a restraining order can grant you exclusive control of certain property, prevent your spouse from canceling your health insurance, require your spouse to pay towards specific debts, and block your spouse from getting rid of or borrowing against any property.

You and your attorney may also request that the court freeze marital assets throughout the divorce proceedings. This legally bars your spouse from wasting, selling, or gaining access to certain assets. It is typically ideal to do this as early on as possible.

The best legal resources for you will depend on certain details of your assets, marriage, and your spouse’s behavior thus far.

As your divorce attorney, we will become deeply familiar with your case and your needs during your initial consultation. This allows us to prioritize seeking the most urgently needed protections.

How Can One Recover Financially After Being a Victim of Financial Manipulation in a Divorce?

Some steps you can take to recover financially after being a victim of financial manipulation in a divorce:

• Open a new bank account solely in your name. Guaranteeing that you will always have personal access to your money is a necessary first step towards financial independence.
• Establish new lines of credit solely in your name. While taking on new debt at this stage is not ideal, this step can protect you from further manipulation and ensures you can get financial assistance when you need it.
• Begin budgeting and tracking your expenses. Your budget acts as your roadmap to financial independence. It also creates an easy way to confirm that your ex is paying you alimony, child support, etc.
• Speak with your lawyer about recovering financial losses caused by financial manipulation. While there is not always a guaranteed path to recover money post-divorce, your lawyer can review any available options and recommend the ideal legal course of action.

Get the Peace You Deserve by Hiring an Experienced, Aggressive California Divorce Attorney

Financial manipulation in a California divorce is surprisingly common, and it can have long-lasting negative impacts on your life post-divorce. This does not only apply to your own finances—PTSD is seven times more common in marriages where financial manipulation has occurred.

You need a compassionate, successful, and aggressive California divorce attorney who is very experienced in identifying financial manipulation and how to fight your spouse’s attempts to do so. Especially now that financial abuse is recognized by state law, you and your lawyer have the power to claim what is rightfully yours in the divorce.

At Bansmer Law, that is exactly what we do best. If you are looking to file for divorce or you are struggling with financial manipulation in your divorce, call us now at (209) 474-2400.