# Can You Move Money Around Before a Divorce? When a marriage is falling apart, it's natural to worry about money. You might be thinking about protecting yourself financially, especially if you're concerned your spouse might try to hide assets or drain accounts. Or maybe you're just wondering what you're allowed to do with your own money during this uncertain time. The short answer is: you need to be very careful. Moving money around before or during a divorce can have serious legal consequences. What feels like protecting yourself could be seen by a court as hiding assets, dissipating marital property, or acting in bad faith. This guide explains what's allowed, what's risky, and what could get you in serious trouble when it comes to money and divorce in Ontario. ## The Basic Rule: Financial Disclosure Is Mandatory In Ontario family law, both spouses have a **duty of full and frank financial disclosure**. This means you must tell the other side about all your assets, debts, income, and expenses. You can't hide things or pretend they don't exist. This duty is **immediate and ongoing**, and is required in any court case involving support or property. Courts take it extremely seriously. If you move money around to avoid disclosure or to deprive your spouse of their share, there will be consequences. The duty of disclosure isn't just about what you have now. It's also about what you had at relevant points in time, particularly the [valuation date](/glossary#letter-v) and the date of marriage. Courts can and do look at financial history to understand what happened to assets. ## Understanding the Valuation Date In Ontario, property division is based on calculating each spouse's [net family property](/glossary#letter-n) as of the **valuation date**. In most cases, the valuation date is the date you separated with no reasonable prospect of resuming cohabitation. However, the Family Law Act defines valuation date as the earliest of several possible triggers, including the date a divorce is granted, the date a marriage is declared a nullity, the day before a spouse dies, or the date an application is made based on improvident depletion of net family property (under section 5(3) of the Act) that is subsequently granted. For most separating couples, the separation date is the relevant one. What this means is that the assets and debts you each had on the valuation date are what matter for equalization purposes. If you had $100,000 in your account on that date, that's the number used in the calculation. Post-separation transfers usually don't change the valuation-date numbers, but they can still affect outcomes. If a court finds depletion, bad faith, or disclosure problems, it has tools to address this. Moving money after separation doesn't mean you've successfully avoided your obligations. ## What Courts Consider "Dissipation" or "Depletion" **Dissipation** or **depletion** is when a spouse intentionally or recklessly wastes, hides, or depletes assets in ways that affect the property available for division. Examples might include transferring money to family members or friends to "hold" for you, making large purchases that benefit only you right before or after separation, gambling away significant amounts, giving expensive gifts to a new partner, deliberately destroying or devaluing property, and draining accounts and claiming the money is "gone." If a court finds intentional or reckless depletion of net family property, it has remedies available. These can include ordering an **unequal division** of property and treating the depletion in a way that prevents you from benefiting from it. The court may also draw adverse inferences about your finances generally. The key point is that you don't get to benefit from wasting or hiding assets. Courts have seen these tactics before and have ways to address them. ## What About Moving Money Before Separation? Some people wonder if they can move money around before the separation actually happens, thinking this will somehow protect it. This is risky for several reasons. First, if the marriage is already troubled and you're contemplating separation, moving money could be seen as deliberate depletion even if you haven't formally separated yet. Courts look at the circumstances and timing. Second, your spouse may have already documented your financial situation. Bank statements, tax returns, and other records can show what you had and when it disappeared. If large amounts vanish shortly before separation, you'll need to explain where they went. Third, courts can restrain the transfer or depletion of property and make preservation-type orders to protect an equalization claim. Under Ontario's Family Law Act, the court has broad powers to prevent one spouse from defeating the other's property claims. Finally, acting in bad faith before separation can affect how a court views your credibility on everything else. Judges remember who tried to play games with the finances. ## Can You Open Your Own Bank Account? Yes. Opening your own bank account is generally a reasonable step to take when you're separating. It makes sense to have a place where your income goes that your spouse can't access. This is different from hiding money. You're not concealing the account. You'll disclose it when required. You're simply ensuring you have access to funds for your own living expenses. For more on this topic, see our guide on [whether you should get your own bank account before divorce](/blog/should-i-get-my-own-bank-account-before-divorce). ## Can You Take Half of Joint Accounts? This is a common question, and the answer is more complicated than it seems. Legally, if your name is on a joint account, you typically have the right to access the funds. Banks usually allow either account holder to withdraw the full balance. However, just because you can doesn't mean you should take everything. Taking more than your share of joint funds can be seen as bad faith and may be addressed in the property division. A reasonable approach is often to take approximately half of joint funds to ensure you have money for living expenses and legal fees, while leaving the other half for your spouse. Document what you took and why. If you're concerned your spouse might drain the accounts first, you may need to act quickly. But if you take more than half, be prepared to account for it later. For more on this topic, see our guide on [whether your spouse gets half your bank account in Ontario](/blog/does-my-spouse-get-half-of-my-bank-account-in-ontario). ## Can You Pay Off Debts? Paying legitimate debts is generally acceptable. If you have credit card debt, a car loan, or other obligations, continuing to pay them is normal financial behaviour. What becomes problematic is paying off debts in unusual ways or at unusual times, such as paying off a large debt to a family member right before separation (especially if that debt is questionable), making a lump sum payment on a debt that you normally pay monthly, paying off your spouse's debt to reduce the amount they owe (which affects net family property calculations), and paying debts with assets that should be preserved for equalization. The key is whether your actions look like normal financial management or like strategic moves to affect the property division. ## Can You Make Large Purchases? Making large purchases right before or after separation is risky. If you suddenly buy an expensive car, take an extravagant vacation, or make other major purchases, this could be viewed as dissipation. The court might ask: why now? If you hadn't made that purchase in the years before, why did you suddenly need to do it when the marriage was ending? Normal household purchases and maintenance are fine. Replacing a broken appliance or buying groceries is not dissipation. But a $50,000 discretionary purchase right before separation will raise questions. ## Can You Give Money to Family Members? Giving money or assets to family members during a separation is one of the most obvious red flags for courts. If you transfer your savings to your parents "for safekeeping," give large gifts to your siblings, or suddenly "repay" a loan to a relative that no one mentioned before, courts will be suspicious. Courts can make orders to address these transfers, and the value will likely be accounted for when determining your equalization obligations. You might also face findings of bad faith that affect other aspects of your case. The same applies to transferring property like putting your share of the house into someone else's name. ## Can You Cash Out Investments or RRSPs? Cashing out investments or RRSPs during a separation is generally a bad idea for several reasons. First, you'll typically owe significant taxes on RRSP withdrawals, which reduces the overall pool of assets available. Second, the value of the investments as of the valuation date is what matters for equalization. Cashing them out doesn't change that calculation, but it does create tax consequences and might be seen as depletion if the money then disappears. Third, if you're doing it to spend the money or hide it, all the problems with dissipation apply. There may be legitimate reasons to access funds during separation, like paying legal fees or living expenses when you have no other source of money. But document your reasons and spend the money on legitimate needs. For more on how investments are handled in divorce, see our guide on [pensions, RRSPs, and investments in an Ontario divorce](/blog/pensions-rrsps-investments-ontario-divorce). ## What About the Matrimonial Home? The [matrimonial home](/blog/who-gets-the-house-ontario-separation-matrimonial-home) has special protections in Ontario for **married spouses**. Neither spouse can sell, mortgage, or encumber the matrimonial home without the other spouse's consent, regardless of whose name is on title. These protections apply specifically to married couples. [Common-law partners have different (and fewer) property protections](/blog/common-law-vs-married-ontario-separation-rights). This means you cannot secretly refinance the home or take out a line of credit against it without your spouse's knowledge. Attempting to do so could result in the transaction being invalid or voidable, and can lead to serious legal consequences. If you're concerned your spouse might try to deal with the home without your consent, there are title-based tools available to help protect your interest. These include registering a **designation of matrimonial home** on title using the prescribed forms under Ontario regulations (this is situational and depends on your circumstances), and in some cases, litigation-related registrations such as a certificate of pending litigation. A family law lawyer can advise whether these tools are appropriate in your situation. ## What Happens If You Hide Assets? If you hide assets and get caught, the consequences can be severe. **The hidden assets get accounted for.** Courts can account for the value of hidden assets when determining your equalization obligations. You don't benefit from hiding them. **Adverse inferences.** If the court believes you're hiding something but can't determine exactly what, it can draw adverse inferences against you. This means assuming the worst about your financial situation. **Costs awards.** You may be ordered to pay your spouse's legal costs for the additional work required to uncover your hidden assets. **Credibility damage.** If a judge finds you lied about finances, they're less likely to believe you about anything else, including parenting issues. **Sworn statement consequences.** In Ontario family law proceedings, financial statements are sworn documents that must be completed truthfully. If you sign a sworn financial statement that contains false information, you could face serious legal consequences, including potential contempt of court findings or, in extreme cases, criminal liability for making false statements under oath. **Unequal division.** Courts have the power to order an unequal division of property if one spouse has been dishonest about finances or has depleted assets in bad faith. If the court finds that an equal division would be unconscionable in the circumstances, it can adjust the equalization accordingly. ## Protecting Yourself Legitimately There are legitimate steps you can take to protect yourself financially during a divorce. **Document everything.** Make copies of financial records, tax returns, bank statements, investment accounts, property records, and debt statements. Do this early, before records become harder to access. **Open your own bank account.** Having a separate account for your income and expenses is reasonable. **Take your fair share of joint funds.** Taking approximately half of joint accounts for living expenses is generally acceptable, though document what you took and why. **Keep a record of household expenses.** If you're paying household bills during separation, document them. **Don't make unusual financial moves.** Continue managing your finances normally. Don't make large purchases, give away assets, or dramatically change your spending patterns. **Get professional advice.** Talk to a [family law lawyer](/blog/how-to-choose-a-divorce-lawyer-in-ontario) and consider consulting a [Certified Divorce Financial Analyst](/blog/do-i-need-a-certified-divorce-financial-analyst-cdfa) if you have complex finances. ## What If Your Spouse Is Moving Money? If you suspect your spouse is hiding or dissipating assets, take action. **Document what you can.** Gather whatever financial records you can access. Note any unusual transactions or behaviours. **Get legal advice immediately.** A lawyer can advise on urgent steps, including potentially seeking a court order to preserve assets. **Consider a motion for preservation or restraining order.** In some cases, you can ask the court to make an order restraining your spouse from disposing of, dissipating, or encumbering assets until the property issues are resolved. The Family Law Act gives courts the power to make these kinds of orders. **Don't retaliate in kind.** If your spouse is moving money, the solution is not to do the same thing yourself. Two wrongs don't make a right, and you don't want to compromise your own position. ## If Money Is Already Gone If your spouse has already spent or hidden significant assets, you're not necessarily without recourse. Courts can address depletion through unequal division and other remedies. If your spouse depleted $50,000 in ways that look like intentional or reckless dissipation, the court can treat that depletion in a way that prevents them from benefiting from it. This might mean they owe you more in the equalization calculation, or it might result in an adjustment to the overall division. Courts can also draw adverse inferences when a spouse can't or won't explain where money went. If large amounts disappeared and your spouse claims not to know what happened, the court may assume the worst. However, actually recovering the money can be difficult if it's truly gone. You may end up with a judgment in your favour that's hard to collect. This is why preventing dissipation in the first place, through documentation and timely legal action, is so important. ## What About Business Owners? If you or your spouse owns a business, the financial issues become more complex. Business owners sometimes have more opportunity to manipulate their apparent income or the apparent value of their business. Common tactics include taking cash payments off the books, running personal expenses through the business, undervaluing the business in financial statements, paying family members inflated salaries, and deferring income until after separation. Courts are aware of these tactics and forensic accountants can often uncover them. If you're separating from a business owner and suspect financial games, you'll likely need professional help to get an accurate picture. For more on how debt factors into divorce, see our guide on [how debt works in a divorce](/blog/how-does-debt-work-in-a-divorce-in-ontario). ## Key Takeaways Moving money around before or during a divorce is risky. Both spouses have a duty of full financial disclosure that is immediate and ongoing. The relevant date for property division in Ontario is usually the **date of separation** (or another valuation date trigger under the Family Law Act, such as the date of divorce, the day before a spouse dies, or the date of a granted improvident depletion application). Post-separation transfers usually don't change the valuation-date numbers, but they can still affect outcomes if a court finds depletion, bad faith, or disclosure problems. If a court finds intentional or reckless **depletion** (hiding, wasting, or depleting assets), it can order remedies including unequal division and will treat the depletion in a way that prevents you from benefiting from it. Legitimate steps include opening your own bank account, taking approximately half of joint funds for living expenses, and documenting your finances. Problematic steps include transferring money to family members, making unusual large purchases, cashing out investments without good reason, and hiding accounts or assets. If you hide assets and get caught, consequences include adverse inferences, cost awards, credibility damage, and potentially an unequal property division against you. Signing a false sworn financial statement can have serious legal consequences. Matrimonial home protections apply to married spouses. Common-law partners have different rules. If your spouse is moving money, document what you can and get legal advice immediately. Courts can make restraining and preservation orders to protect assets. Complex situations involving businesses or significant assets benefit from professional help, including lawyers and financial experts. When in doubt, manage your finances normally and get advice before making any unusual moves. ### Disclaimer This article provides general information about financial considerations during divorce in Ontario. It is not legal advice. Financial disclosure requirements and property division rules are complex. For advice about your specific situation, speak to a family law lawyer.