Why Can’t I Sell or Transfer Property While My Case is Pending? Understanding the term “Ordinary Course of Business”
When a divorce is filed in Georgia, both spouses are immediately subject to certain rules that protect marital property and ensure fairness while the case is pending. Two key laws, O.C.G.A. § 19-5-7 and O.C.G.A. § 19-6-1(e), prevent either spouse from transferring or misusing marital property outside of what is considered the “ordinary course of business.” Understanding what that means can help you avoid problems as you move through your divorce.
What “Ordinary Course of Business” Means
The “ordinary course of business” simply refers to your regular, every day financial activities. You can keep doing what you normally did before filing for divorce, such as paying your mortgage or rent, making car payments, buying groceries, and covering routine bills. These are normal household and living expenses.
What you cannot do is make big financial changes that would alter the marital estate. Once the divorce is filed, each spouse is expected to keep things financially steady until the court can evaluate all of the assets and debts and divide them equitably.
How Courts Emphasize This Rule
You will often see this concept mentioned in a Complaint for Divorce or in a Temporary Order entered by the court. These documents include language that explains what each party can and cannot do with marital funds. For example, a court order might say:
“The parties will refrain from transferring any marital funds from their current accounts unless for the ordinary course of business. The parties shall only use any of the funds that they have access to for the ordinary course of business.”
This type of language reminds both spouses that they are expected to act responsibly and only spend money on normal, necessary expenses. The court’s goal is to maintain financial stability and prevent either party from gaining an unfair advantage before the financial issues are resolved.
Examples of Routine Financial Activity
Activities that usually fall within the ordinary course of business include paying your mortgage or rent, utility bills, car payments, insurance, and regular credit card payments. Buying groceries or covering your children’s day-to-day expenses is also fine. Essentially, if the expense is part of your normal monthly routine and consistent with your standard of living, it is likely permitted.
Examples of What Is Not Ordinary
Problems can arise when one spouse starts spending or moving money in ways that go beyond routine expenses. Paying off large personal debts, making big purchases like a new car or luxury items, or transferring large sums of money between accounts can all raise red flags. Cashing out retirement funds, changing beneficiaries, or giving away money or property are also not allowed.
These types of actions can be seen as attempts to hide, waste, or manipulate marital property, and the court takes them seriously. Any major financial move that changes the marital estate without the other party’s consent or court approval can lead to trouble.
In the event you would need to make a substantial payment, be sure to consult with your attorney prior to making the decision.
Why the Domestic Relations Financial Affidavit Matters
When you file for divorce in Georgia, both spouses must complete a Domestic Relations Financial Affidavit (D.R.F.A.) This document provides a snapshot of your finances at the time of filing, including your income, expenses, assets, and debts.
The DRFA helps the court understand your typical financial situation and ensures the division of property is fair. If one spouse starts transferring money or paying unusual debts after filing, it can undermine the accuracy of this record and make it harder for the court to determine what belongs in the marital estate.
Consequences of Violating the Rules
If a spouse violates O.C.G.A. § 19-5-7 or O.C.G.A. § 19-6-1(e) by spending money outside the ordinary course of business, the court can find that person in contempt. This can result in fines, attorney’s fees, or even an order to repay misused funds. In some cases, it can also impact how the court divides property or awards alimony. The court expects both spouses to act in good faith and avoid disrupting the process.
Why These Rules Exist
These rules are not meant to punish either spouse. They exist to make sure both people are treated fairly and that the court has a clear and accurate picture of the couple’s marital estate. By keeping spending and financial activity consistent, the court can make a fair decision about how to divide property and debts.
The Bottom Line
Once a divorce is filed, it is best to continue managing your finances as you always have. Avoid large transfers, new debts, or major purchases unless you have spoken with your attorney or received court approval. Staying consistent and cautious helps protect you, your finances, and the integrity of the divorce process.
Emily Owens-Price
