Should I Move Out Before Filing for Divorce? A Financial Perspective

One of the questions I hear as a Certified Divorce Financial Analyst (CDFA) is, “Should I move out before filing for divorce?” It’s an understandable concern as tensions at home may be high, and you might be eager to establish physical and emotional distance. However, moving out prematurely can have significant financial and legal implications that should be carefully considered before deciding. In this post, we answer top questions related to the decision to leave your marital home.  

Financial and Legal Considerations

1. Affording two households 

Divorce is expensive, and maintaining two households instead of one can strain your finances. Before moving out, take a close look at your income, expenses, and available assets. Will you need to pay rent or a mortgage on a new place while still contributing to the marital home? Will your spouse be able to cover household expenses, or could this impact future negotiations? A financial analysis can help you determine whether moving out is financially feasible.  

2. Impact on property and asset division 

Leaving the marital home doesn’t mean you forfeit your ownership interest, but it can complicate matters therefore is always best to discuss with legal counsel. However, complexities that could arise include possibilities such as if you leave and your spouse continues paying the mortgage, they may later argue they should receive a larger share of the home’s equity. Additionally, if you move out and stop contributing to household expenses, could a court take that into account when dividing assets.  

3. Temporary vs. permanent financial arrangements  

Until final agreements or orders have been made regarding your case, temporary financial expectations may be necessary related to expenses of the marital home and/or financial stability for the other party. Addressing temporary needs in the interrum that may require continual contributions to mortgage payments, utilities, or support payments before finalizing the divorce settlement is essential for a smooth transition. Understanding these potential obligations in advance can help you plan accordingly.  

4. Custody and parenting time considerations 

If you have children, it is important to discuss any possible legal considerations this could have in regard to custody and parenting time with your attorney. If you want to maintain the parenting time available to you, it is important that your alternate living arrangements meet the children’s needs. Such considerations include personal space for the child(ren), furnishings and toys that the child(ren) needs, social needs, and being in close proximity to schools, friends, and activities. Overall, choosing an alternative living arrangement that minimizes interruptions to the children is important. 

5. Possession of the home during the divorce  

In some cases, the spouse who remains in the home may feel a sense of first choice in attempting to keep the home long-term. If your spouse stays and you move out, they may later argue that they should keep the home permanently. Additionally, re-entering the home once you’ve left could become more logistically complicated.

6. Domestic abuse and safety considerations

If there are concerns about domestic abuse or safety, moving out may be the best option, regardless of financial implications. In such cases, seeking a protective order or temporary spousal support order may be necessary to ensure your safety and financial stability.  

Alternatives to Moving Out  

If tensions at home are high, but you’re concerned about the financial and legal consequences of moving out, consider these alternatives:  

• Create a separation agreement or temporary agreements/orders: If you and your spouse can agree on terms, you may be able to live separately under the same roof while working through the divorce process.  
• Agree to a collaborative divorce process or mediation: These options can help reduce conflict, sort through finances, and make living arrangements more manageable.  
• Seek legal guidance: An attorney can provide specific advice on how moving out may impact your case.  

Moving out before filing for divorce might seem like the easiest solution in the short term, but it can have lasting financial and legal consequences. Before making a decision, consider the potential impact on your finances, custody arrangements, and legal standing. Consulting with a CDFA and an attorney can help you develop a strategy that protects your financial future while navigating the complexities of divorce.  

If you’re facing this decision and need financial guidance, don’t hesitate to reach out. I’m here to help you make informed choices for your financial future.