Can your ex spend your retirement money? That’s the question raised by a recent dispute involving former Bachelorette star Deanna Pappas. According to reports of court filings, Pappas claims her ex-husband withdrew approximately $109,000 from a retirement account before transferring to her the share she was awarded in their California divorce. Her ex-husband’s reported defense is that he is experiencing severe financial hardship after losing his job and used the money for living expenses, support obligations, and business expenses.
Whether his explanation ultimately succeeds is up to the court. But the case raises an important question for anyone going through a California divorce.
Can Your Ex Spend Your Retirement Money?
In most cases, the answer is no.
Once a California divorce judgment awards part of a retirement account to the other spouse, that spouse has a legal interest in those funds. One spouse generally cannot decide to spend the other person’s share simply because they believe they need the money more. The California Public Employees’ Retirement System (CalPERS) likewise explains that a former spouse may have a community property interest in retirement benefits that must be addressed before benefits are distributed.¹
Financial hardship may explain why someone made the withdrawal, but it does not automatically excuse violating a court order.
What If Your Ex Already Spent the Money?
If your former spouse withdraws or spends retirement funds that should have been divided, you are not necessarily out of luck.
Depending on the facts of your case, a California court may:
- Order your former spouse to repay the money.
- Award interest on the amount that should have been transferred.
- Order payment of attorney’s fees.
- Enforce the divorce judgment through additional court orders.
- In appropriate cases, impose sanctions or other remedies.
Every case is different, but California courts have broad authority to enforce property division orders. In many cases, dividing retirement accounts also requires a Qualified Domestic Relations Order (QDRO) or other court order before the retirement plan can distribute benefits.
Act Before the Problem Gets Worse
Retirement accounts often require additional legal steps before they can be divided. During delays, some people mistakenly believe they are free to withdraw or spend money that has already been awarded to their former spouse.
The longer you wait to address the problem, the more difficult recovering those funds can become.
Protect Your Retirement Money
If your former spouse has withdrawn retirement funds, failed to transfer assets awarded in your divorce, or refuses to comply with your California divorce judgment, you may have legal options. For help enforcing a California divorce judgment or for any other family law matter, contact David Knecht Law at (707) 451-4502.
