Protecting Yourself Financially Before Filing for Divorce
By Mary Ann Hall, Hall & Means, LLC
Knowing how to prepare financially for divorce before you file is not about hiding assets or being deceptive—South Carolina courts take a very dim view of either, and both can backfire severely. It is about making sure that when you walk into the Charleston County Family Court, you have a complete, documented picture of the marital estate, your own income and expenses, and enough financial footing to sustain yourself and your children through a process that often takes months. Clients who do this preparation before filing consistently achieve better outcomes than those who don’t.
Why Financial Preparation Matters Before You File
South Carolina is an equitable distribution state under SC Code § 20-3-620, which means the court divides marital property in a way it considers fair—not necessarily 50/50. The court cannot divide what it does not know exists. If your spouse controls the finances and you file without knowing what accounts, assets, and debts are in the marital estate, you are negotiating blind. Preparation closes that information gap before your spouse has any incentive to minimize or conceal assets.
Additionally, divorce litigation is expensive. Between filing fees, attorney’s fees, forensic accountants, and temporary periods without access to joint funds, clients who have not established any independent financial identity can find themselves dependent on a spouse who controls all the money — precisely when they are trying to leave.
Build a Complete Financial Picture First
Before you do anything else, inventory the entire marital estate. You are looking for:
Bank and investment accounts
- Every checking, savings, and money market account (joint and individual)
- Brokerage and investment accounts
- Retirement accounts: 401(k), 403(b), IRA, pension—get the most recent statements for all accounts, including your spouse’s
- Cryptocurrency holdings, if any
Real property and vehicles
- Your marital home: current mortgage balance, approximate fair market value (pull recent Zillow or tax assessor estimates as a starting point)
- Any other real property (vacation property, investment property, inherited land)
- Vehicles: current loan balances and values
Business interests
If either spouse owns a business or has an ownership interest in one, that interest may be marital property subject to valuation and division. Business valuation is complex and almost always requires an expert. If your spouse owns a business and you are preparing for divorce, note the business name, structure (LLC, S-corp, sole proprietorship), and any documentation you have access to about revenues and expenses.
Debts
- Mortgage(s): get the most recent statement showing current balance
- Credit cards in both names and in each spouse’s name only
- Student loans (generally treated as the separate debt of the borrowing spouse, even when incurred during the marriage)
- Car loans, home equity lines of credit, personal loans
- Back taxes owed to IRS or SCDOR
Gather and Secure Copies of Critical Documents
Once you have the inventory, gather copies of the underlying documents and store them somewhere your spouse cannot access or destroy them—a safe at work, a parent’s home, a cloud storage account your spouse does not know about, or with your attorney. Priority documents include:
- Federal and state tax returns for the last 3–5 years (both individual and joint)
- Recent paystubs for both you and your spouse (last 2–3 months)
- Bank and investment account statements for the last 12 months
- Retirement account statements (most recent annual and most recent quarterly)
- Mortgage statement and deed to your home
- Any prenuptial or postnuptial agreement
- Life insurance policies (note the cash value, if any)
- Vehicle titles
- Business tax returns, K-1s, or partnership agreements if applicable
- Social Security earnings statement for both spouses (pull yours at ssa.gov)
- Recent credit reports for both spouses (pull yours at annualcreditreport.com)
- Documentation of any trusts in which either spouse has an interest as settlor, trustee, or beneficiary
You are entitled to access all joint accounts and jointly filed tax returns. Reviewing these documents before filing is not improper; it is prudent. Your spouse’s separate accounts—accounts solely in their name—are a different matter; do not access those without authorization.
Open Your Own Accounts and Build Independent Credit
If you do not have a bank account and credit card in your name only, open them now—before you file. This is not hiding assets; it is establishing financial independence. You will need a separate checking account to receive income during the separation period, to pay personal expenses, and to retain an attorney.
If you have no credit history in your own name — a common situation for the spouse who managed household finances while the other built a career — take steps now:
- Pull your credit report at annualcreditreport.com and check what accounts appear in your name
- Apply for a secured credit card (requires a deposit; the deposit becomes your credit limit) if you have no existing credit history
- Request to be added as an authorized user on an account with a good payment history, if possible
- Do not close joint credit cards yet—that decision has implications for your credit score and for marital debt negotiations; discuss with your attorney first
Build an Emergency Fund—Within Legal Limits
It is entirely appropriate to set aside money for living expenses and legal fees before you file. The question is how much and from where. SC courts distinguish between prudent preparation and dissipation of marital assets:
- Acceptable: redirecting a portion of your regular paycheck into a separate account over time; depositing your personal income into an account only you control; keeping your own earnings
- Acceptable: saving 2–3 months of living expenses and legal retainer from your own income
- Not acceptable: taking large sums from joint accounts immediately before filing; transferring joint assets to relatives for safekeeping; closing joint accounts without notice; spending marital funds on a paramour or to punish your spouse
When you file, the court will typically enter a standard temporary order prohibiting both parties from transferring, encumbering, or dissipating marital assets. Actions taken before filing are scrutinized and must be disclosed on your Financial Declaration. Honesty is not just ethically required—it is strategically required. Judges in the 9th Judicial Circuit notice when financial declarations don’t match bank records.
What You Cannot Do: Hidden Assets and Contempt
Concealing marital assets during a South Carolina divorce is not a gray area. SC Code § 20-3-620(B) requires full disclosure. The Family Court Financial Declaration (SCCA Form 430) is a sworn document—lying on it is perjury and contempt of court. Discovery tools including subpoenas, depositions under oath, and forensic account analysis are available to either party. Courts that find asset concealment routinely:
- Assign the concealed asset entirely to the concealing spouse as a penalty
- Award additional marital property to the injured spouse to compensate
- Award attorney’s fees against the concealing spouse
- Hold the concealing spouse in civil contempt, with potential remedies including community service, fines, and incarceration
If you suspect your spouse is concealing assets, the solution is aggressive discovery—not concealment on your side. Hiring a forensic accountant to trace financial records is far more effective, and far less risky, than trying to hide your own assets.
When to Consult a Forensic Accountant
Consider engaging a forensic accountant if your case involves any of the following:
- A self-employed spouse or a spouse who owns a business (income underreporting is extremely common)
- Significant cash-based income in either household
- Multiple real estate holdings or investment properties
- Suspected transfers of marital funds to relatives or hidden accounts
- Complex compensation structures (restricted stock units, deferred compensation, stock options)
- Pensions or defined-benefit plans that require actuarial valuation
Forensic accountants are not inexpensive — expect $7,500 and up depending on complexity — but in cases where marital property is substantial or income is concealed, the investment frequently results in a materially better settlement than the cost of the expert.
Frequently Asked Questions
Can my spouse freeze our joint accounts when I file?
Either spouse can unilaterally withdraw from a joint account until a court order restricts it. A temporary order restricting transfers is not automatic on filing — you must file and prevail on a motion for temporary relief before the protection takes effect. If your spouse begins draining joint accounts, the appropriate response is a noticed motion to the Family Court asking for a temporary order restricting transfers (and, depending on the circumstances, holding the spouse responsible for dissipated funds in the eventual property division). Note that emergency motions over money — as distinct from child-safety emergencies — are rarely treated as emergencies by the court, so prompt but properly noticed motion practice is usually the right path. Document every transaction with bank statements either way.
Will my spouse’s retirement account be split in the divorce?
The portion of a 401(k), pension, or IRA earned during the marriage is generally marital property subject to equitable distribution in South Carolina. Division of a retirement plan requires a separate court order submitted to the plan administrator — most commonly a Qualified Domestic Relations Order (QDRO) for ERISA-governed plans like 401(k)s, but Domestic Relations Orders (DROs) for non-ERISA plans and specialized military or government orders for federal retirement systems are also used, depending on the plan type. Your attorney should prepare the appropriate order at the same time as the divorce decree — waiting until after the divorce is finalized makes the process harder and sometimes impossible.
What if I have not worked in years and have no income?
A spouse who has not worked outside the home may be entitled to alimony and an equitable share of marital property, including the marital home and retirement assets built during the marriage. The Family Court can also enter a temporary order requiring the working spouse to pay interim support and attorney’s fees while the case is pending—so you are not dependent on goodwill. See our guide on alimony in South Carolina for the types and qualification standards.
Next steps: read our guide on equitable distribution in South Carolina to understand how the court divides marital property, and our guide on grounds for divorce in South Carolina to understand which ground best fits your situation.
Hall & Means, LLC represents clients throughout the Tri-County Lowcountry — Charleston, Berkeley, and Dorchester counties, served by the 9th and 1st Judicial Circuits — and on a case-by-case basis in surrounding counties. The legal framework discussed here applies statewide in South Carolina.
About the Author
Mary Ann Hall is a founding attorney at Hall & Means, LLC and one of Charleston’s most experienced family law advocates. She is licensed to practice in South Carolina and has built her career advocating for clients and their rights in divorce, custody, alimony, and family law proceedings throughout the Lowcountry.