Freezing Assets During Divorce in Rhode Island

The Automatic Freeze Takes Effect Immediately

The moment a divorce complaint is filed in Rhode Island, automatic restraining orders under R.I. Gen. Laws § 15-5-14.1 take effect. For the spouse who files, the orders are active on the filing date. For the other spouse, they kick in upon service of the divorce papers.

These are not suggestions. They are court orders with teeth.

What the Orders Prohibit

Both spouses are prohibited from:

• Selling, transferring, concealing, or encumbering any marital or individual property without written consent from the other spouse or a court order — except for ordinary course of business or standard household expenses
• Incurring unreasonable debts or drawing against credit lines secured by the marital home
• Changing beneficiary designations on existing life insurance policies
• Canceling or modifying medical, dental, life, auto, or homeowner insurance coverage

What You Can Still Do

The orders are designed to preserve the status quo, not paralyze your finances. You can still:

• Pay ordinary household bills — mortgage, utilities, groceries, gas, medical expenses
• Make normal business expenditures if you run a business — payroll, inventory, rent, routine operating costs
• Maintain insurance coverage — you are required to keep existing policies in force, which means you must continue paying premiums
• Use credit cards for ordinary expenses — groceries, gas, routine medical copays

The key word is "ordinary." A $200 grocery run is ordinary. A $15,000 home renovation is not. If you are unsure whether an expenditure qualifies, ask before spending.

Can You Close a Joint Account?

Closing a joint bank account unilaterally during a Rhode Island divorce is risky. The automatic orders prohibit transferring or concealing marital property, and emptying a joint account to move the funds to an individual account can be interpreted as exactly that.

The safer approach:

1. Do not withdraw or transfer marital funds unilaterally — obtain written consent from the other spouse or a court order; if ordinary household expenses require use, document the balance and transaction
2. Document everything — keep records of the balance at the time of your withdrawal and what you used the funds for
3. Notify the other party — transparency protects you from a contempt allegation
4. Do not close the account entirely — leave it open with a minimal balance until the court or a settlement agreement addresses it

If you are concerned your spouse will drain a joint account before you can act, you can file an emergency motion for temporary orders asking the court to restrict access or freeze the account. This is faster and more defensible than taking unilateral action.

Credit Cards and Lines of Credit

Joint credit cards present a different problem. Do not close or change a joint account unilaterally during the divorce without checking the automatic orders and obtaining written agreement or a court order. Contact the credit card company and ask about options:

• Freeze the account to prevent new charges (some issuers allow this with one account holder's request)
• Lower the credit limit to the current balance
• Request a note on the account documenting that you have objected to further charges

Whether any of these steps complies depends on the account and the effect of the change; obtain written agreement or a court order before altering access to marital credit.

Consequences of Violating the Orders

A spouse who violates the automatic restraining orders faces:

• Contempt of court — possible fines and other court-ordered sanctions
• Unfavorable property division — the court can treat unauthorized transfers as dissipation of marital assets and award the other spouse a larger share of the remaining estate
• Credibility damage — judges remember who played fair and who did not, and that impression colors every subsequent ruling in the case

Practical Steps Before Filing

If you know a divorce is coming, take these steps while you still have normal access:

• Document all account balances — bank accounts, investment accounts, retirement accounts, credit card balances — as of a specific date
• Copy financial records — tax returns, pay stubs, statements — before your spouse changes passwords
• Monitor credit reports — set up alerts for new accounts or inquiries in your name
• Open an individual bank account — having a personal account in place before filing gives you somewhere to deposit your income without commingling issues

These steps are informational and protective, not adversarial. Gathering records is not the same as moving money.

The Rhode Island Financial Split Guide includes an automatic restraining order compliance log that tracks every financial transaction during the divorce — so you can demonstrate full compliance if your spouse alleges a violation.

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