Paying Bills During The Divorce
When undergoing a divorce, it is essential to maintain the status quo regarding financial obligations until the divorce is finalized. This includes continuing to pay regular bills, such as mortgage payments, rent, utilities, and other essential expenses. Doing so helps to avoid negative impacts on your credit and legal standing. It is also critical to understand that both spouses remain responsible for joint debts, such as credit cards and loans, until a court order specifies otherwise.
How bills are paid and who should pay them will often be the first problem encountered during a Nevada divorce or separation. You make all the money. Your check is direct deposited into a joint bank account to pay the bills. With the divorce, you are probably going to move into an apartment.
Do you have to support two households? You don’t know if your check can support two households. What bills do you pay? Do you still deposit your checks into the joint bank account? How about her, does she need to get a job?
Who Pays Bills During Nevada Divorce
When a divorce is first filed, there is an awkward transition period of 30 to 60 days. A judge could order you to pay the bills, but the case is too new and you haven’t been to court yet. You are still married. However, Nevada doesn’t have any laws obligating married couples to continue paying bills while together or living separately.
Actually, Nevada Revised Statutes (NRS 123) does talk about not supporting spouses who have abandoned you and the duties of a woman supporting a disabled man with no separate property. These are old laws no longer enforced by the court.
This transition period can be a big issue. While a Divorce is pending, who pays the bills? Our answer is, whoever historically paid them before the divorce started. If you paid the mortgage and car payments while she paid the utilities, you should continue. At least until you have a court order stating otherwise.
We say this because if you don’t, she is going to file a motion for temporary orders. This motion is where the judge makes temporary decisions about issues like custody schedules, economic support, who can live in the house, and bills. The judge’s decision is most often to continue the “status quo”. Whomever was paying the bills before should continue paying them.
Another reason we say to continue with the status quo is that when the Complaint for Divorce is filed, it will typically include a Joint Preliminary Injunction (JPI). A JPI warns both spouses not to encumber or dispose of community assets. Even though a JPI doesn’t specifically talk about bills, the judges like to interpret it in a way that it does.
It is beneficial to communicate with your spouse about bill payments in writing and to keep accurate records of all payments and expenses. If possible, you may want to open separate bank accounts to manage individual finances, but be prepared to use joint funds to cover shared expenses if needed.
Can’t Afford Two Households
What if the status quo is not possible? This argument typically comes up if you were forced to move out of the home. Adding expenses of a “second home” is challenging most budgets. In many cases, financial woes are part of the reason for the divorce or separation. Many families require two incomes just to survive. Now you have to pay your attorney’s retainer, rent for the apartment, utility deposits, etc. Dollar bills aren’t made of rubber.
Courts don’t have the power to print money. You will need to cut back. Temporarily, both of you may need to cut back on eating out, golf, shopping, gun range, or Starbucks. You may choose to move in with a friend or family member. Sometimes the budget is so you might have to cut back on items like tuition for the kids, or cable. Your spouse will not like this. The court won’t either if done maliciously. Make sure your Las Vegas divorce attorney prepares a budget to present to the court the need for these cutbacks.
The court requires both spouses to complete a Financial Disclosure Form (FDF) before it will make decisions on finances. The FDF doesn’t always tell the whole picture. And don’t expect your spouse’s FDF to do you any favors. Her divorce attorney will claim you have 30% more money than you really have. An experienced Las Vegas divorce attorney understands the best way to complete your FDF and to counter her attorney.
What Happens If a Spouse Stops Paying?
Suppose your spouse suddenly stops paying their share of the bills or refuses to contribute. In that case, this can lead to significant financial difficulties, especially if you rely on their payments for joint expenses. Arrears on bills can result in late fees, damaged credit scores, and even legal action if payments are not made on time. In the most extreme cases, unpaid mortgage or rent payments may lead to repossession proceedings, resulting in the loss of your home.
In these situations, it is advisable to continue paying your share of the bills and keep a record of all payments made. If your spouse’s non-payment leads to an increase in debt or financial strain, these amounts may be considered during the divorce settlement. If the financial burden becomes overwhelming, it may be possible to negotiate a voluntary arrangement with your spouse or to pursue mediation to reach a fair solution.
Stacking the Debt
If you are using credit cards or borrowing money to get by during your divorce, those bills will be part of the division of debts. You may have no choice, but be cautious with this approach. Debts acquired after a divorce filing are still considered community debts.
Legal Recourse for Non-Payment
If negotiations with your spouse fail, and they continue to neglect their financial responsibilities, you may need to seek legal intervention. One option is to request a temporary court order that addresses financial obligations during the divorce proceedings. A Nevada judge can issue a temporary order that designates who is responsible for which bills until the divorce is finalized. If your spouse’s non-payment negatively affects your credit, you can take legal action to hold them accountable for their share of the joint debts.
In some cases, it may be necessary to apply for interim spousal maintenance, which provides monthly financial support until the final divorce settlement is reached. This type of maintenance ensures that both parties can continue to meet their basic financial needs during the divorce process.
After the Divorce is Finalized
Once the Las Vegas divorce is finalized, the court will issue a divorce decree outlining the division of joint assets and debts. This decree will specify each party’s financial responsibilities moving forward. It is essential to update any accounts, such as mortgages or car loans, to reflect these new arrangements and ensure that your name is removed from any joint accounts for which you are no longer responsible.
Addressing Financial Disputes During Nevada Divorce
If your spouse has stopped paying their fair share of the bills, it is important to address the situation promptly. If you are unable to reach an agreement on your own, the court can step in to assist. This could involve issuing temporary financial orders or determining how shared debts will be divided. The court will take into account the incomes and assets of both parties, the needs of any children, and whether the couple continues to share the family home or has separate residences.
While the divorce is pending, both spouses are expected to contribute to the household’s financial obligations as they did during the marriage. This includes covering rent or mortgage payments, utilities, and any other shared expenses. If your spouse is not fulfilling their financial obligations, you may need to seek assistance from your divorce attorney, who can help request a temporary court order or provide guidance on how to handle the situation.
Contact an Experienced Nevada Divorce Lawyer
Stuck with bills? Any questions on who pays bills during a divorce in Nevada that we didn’t answer? Give us a call at (702) 914-0400 today.
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