Can I Make a Big Purchase During a Divorce?
Like many legal questions, the answer to whether you can make a large purchase during divorce is: “it depends.”
At the beginning of any divorce or legal separation case in California, Automatic Temporary Restraining Orders (ATROs) are immediately issued and become effective against both parties. These are outlined on the Summons form FL-110 and contain very specific prohibitions.
🔒 What Do the ATROs Say?
One ATRO explicitly prohibits both spouses from:
“Transferring, encumbering, hypothecating, concealing, or in any way disposing of, any property, real or personal, whether community, quasi-community, or separate, without the written consent of the other party or an order of the court, except in the usual course of business or for the necessities of life.”
🚗🏠 What If a Big Purchase Requires Selling Something First?
Large purchases—like buying a new car or new home—often involve liquidating another asset:
- Trading in or selling your current vehicle
- Selling your home to finance a new one
If the transaction requires selling, transferring, or using community property assets, then you are prohibited from proceeding without:
- Written consent from your spouse
- Or, a formal court order authorizing the transaction
⚠️ Notice Requirement for “Extraordinary Expenditures”
Another ATRO mandates:
“Each party must notify the other of any proposed extraordinary expenditures at least five business days before incurring them, and must account to the court for all extraordinary expenditures made.”
This means that even if you’re not selling or encumbering assets, and even if you’re using your own separate property, you must still:
- Give 5 business days’ notice to your spouse
- Be prepared to justify the purchase to the court
✅ What’s the Safest Practice?
The safest route? Don’t make any big purchases until your divorce is finalized.
If the purchase must happen:
- Use only your separate property (income, savings, or credit)
- Notify the other party in writing at least five days in advance
- Consider getting the written consent of your spouse or a court order
- Avoid using any community property assets unless explicitly allowed
If the case is amicable, and you both agree in writing, you’ll have more flexibility.
⚖️ Why It Might Not Be Worth It
Making big financial moves during a divorce can:
- Complicate your case legally and financially
- Trigger emotional backlash or resentment from the other party
- Complicate settlement talks, increasing the likelihood of expensive litigation
And don’t forget: loan applications tied to large purchases are discoverable in litigation. They can:
- Be used to prove income
- Affect spousal or child support calculations
- Impact attorney’s fee awards
🧠 Final Thoughts
Yes, it’s possible to make a large purchase during a divorce—but it’s not always smart.
If the acquisition can wait until your case is finalized, it’s often less risky and less stressful to wait. When in doubt, consult with your attorney before making any major financial decision.
