If you’re wondering, “What is considered entertainment expense during a divorce,” then you’re at the right place. In short – It includes costs for fun activities like vacations, dining out, or gym memberships.
But how and why do courts review these expenses? Also, how can these expenses impact your divorce settlement?
To know everything, keep reading till the end.
Key Takeaways
- Recreational activities like concerts and movies are considered entertainment expenses.
- Vacations for fun are seen as extra spending in divorce cases.
- Dining out, gym memberships and streaming subscriptions can be counted as entertainment.
- Children’s activities are treated differently but can still be reviewed.
- Courts look at financial records to evaluate these expenses.
What is Considered Entertainment Expense During a Divorce?
Entertainment expenses during a divorce include costs for fun activities like vacations, dining out, etc. Most states follow a community property law, which means money spent on entertainment is typically considered shared property.
Courts look at these expenses to help decide how money is divided.
Let’s look at all the things that come under entertainment expense:
Recreational Activities
Recreational activities are fun things like movies, concerts, or sporting events. Even hobbies like bowling or painting can count. In a divorce, courts will look at how much each person spent on these activities.
If one person spent a lot on recreation while the other didn’t, this could be seen as unfair.
For example, if someone regularly attended expensive concerts without their partner, this spending might be reviewed during the divorce. It could affect how the money is split between both people.
The court will check receipts or bank statements to see where the money went. If one spouse spent large amounts without discussing it, it could change how assets are divided.
This ensures fairness.
Vacation and Travel
Vacations and travel are common entertainment expenses. If someone took a lot of trips just for fun, this would be considered in the divorce. Courts usually see vacations that aren’t necessary as “extra spending.”
For example, if one spouse took expensive vacations using shared money and the other stayed home, this might be brought up during the divorce.
However, family trips are handled differently. Only vacations for personal enjoyment are treated as non-essential spending.
Dining Out
Dining out can also be an entertainment expense.
If one spouse regularly dined at expensive restaurants without the other’s knowledge, this could be reviewed. Courts will want to see how much was spent and whether both people agreed on it.
If one person uses shared money for their own enjoyment, it will impact the financial settlement.
Memberships and Subscriptions
Memberships and subscriptions can also count as entertainment expenses. These include things like:
- Gym memberships
- Country clubs
- Streaming services.
During a divorce, the court may look at whether these memberships were necessary.
Let’s take the Francis v. Francis (2005) case as an example here. In Kentucky, a husband’s extensive spending on recreational activities like gym and club memberships was reviewed during asset division.
I checked the decision and it was fair. The court compensated the wife by awarding her a larger portion of the marital estate.
If shared money was used to pay for these, it could change the final financial decision.
Children’s Activities
Children’s activities can also be considered entertainment expenses, but they are treated a little differently. Things like sports, dance classes, or summer camps could fall into this category.
If one parent spends a lot of money on extracurricular activities for the kids, that spending might be considered necessary for the children’s well-being. But if one spouse overuses shared funds for unnecessary activities, it could still be something the court looks into.
In divorce cases, the goal is to make sure the kids are still supported in their activities. That’s why the court will be careful in making decisions here.
In short, entertainment expenses can complicate divorce, just like asset sales. Has your husband sold any assets before the divorce is finalized? Here’s what to do if your husband is selling assets before the divorce.
Why Do Entertainment Expenses Matter in Divorce Cases?
Entertainment expenses matter because they can affect how much each person has spent during the marriage. If one person spent a lot of money on entertainment, the court may adjust how money and property are divided to make it fair.
These expenses can also impact alimony or child support.
Let’s read the details.
Impact on Financial Settlements
Entertainment expenses can play a big role in financial settlements. If one spouse used a large portion of the couple’s money for their own enjoyment, the court may adjust the settlement to balance things out.
Let’s say one spouse regularly took expensive trips or bought tickets to high-priced events. This could reduce how much they receive in the final settlement.
The court will try to make sure both people are treated fairly. This means that if one spouse spends significantly more on entertainment than the other, the court might give more money to the other spouse.
Influence on Alimony
Entertainment expenses can also affect alimony. If one spouse had a habit of spending a lot on leisure activities, the court will consider this when deciding how much alimony to award. Alimony is meant to help support one spouse after the divorce.
But if that spouse has been using shared funds for entertainment, the amount could be reduced.
Impact on Child Support
Child support is meant to ensure that children are cared for after a divorce. Entertainment expenses for the parents may not directly affect child support. However, large spending on children’s entertainment activities could be considered.
For instance, if one parent regularly spends money on costly extracurricular activities for the children, the court might take that into account when determining child support payments.
The focus here is on making sure the children’s needs are met.
But wait. It’s also important to know how long you need to be married to qualify for spousal support during a divorce. If you’re interested, I’ve written a complete guide on the spousal support rules.
How do Courts evaluate Entertainment Expenses? (Know This)
Courts evaluate entertainment expenses by looking at how much was spent, who benefited, and whether the spending was necessary. They review bank statements, receipts, and financial records before making a decision.
Reviewing Financial Records
The first thing the court does is review financial records. This includes:
- Bank statements
- Credit card bills
- Receipts.
They look at how much each person spent on entertainment and whether that spending was reasonable.
Determining What’s Necessary vs. Excessive
The court also looks at whether the entertainment expenses were necessary or excessive. Things like family vacations might be considered necessary, while personal trips or expensive hobbies might be seen as excessive.
The court will figure out if the spending was fair and reasonable.
Considering the Lifestyle During Marriage
The court will also consider the lifestyle the couple had during the marriage. If both people were used to spending a lot on entertainment, the court would take that into account.
However, if one spouse spent excessively without the other’s agreement, that could lead to an “adjustment” in the financial settlement.
Best Practices for Handling Entertainment Expenses in Divorce
Handling entertainment expenses during a divorce can be tricky, but there are a few best practices that can help. These are:
Be Honest About Spending
One of the best things you can do during a divorce is be honest about your spending. If you’ve spent money on entertainment, it’s important to be upfront about it. Hiding expenses can make things more complicated and could hurt your case in the long run.
For example, if you’ve been going on trips or dining out regularly, make sure your lawyer knows. Being honest helps the court make a fair decision about how to divide the money and property.
Keep Detailed Records
Keeping track of your spending is also very important. Make sure you have records of any entertainment expenses, including receipts and bank statements. This helps the court see exactly how much money was spent and whether it was fair.
Having a clear record makes it easier to explain your spending during the divorce.
Communicate with Your Lawyer
Finally, make sure you communicate with your lawyer about any entertainment expenses. If you’re not sure whether something counts as entertainment, ask your lawyer. They can help you figure out what expenses might affect your divorce settlement.
By staying open and keeping clear records, you can make sure that the court has all the information it needs to make a fair decision.
So, stay organized, be honest, and communicate clearly with your lawyer. This will help you in two ways:
- It will ensure a fair outcome.
- It will make the whole process much smoother for you.
That’s all.
Conclusion
To wrap it up, entertainment expenses can have a big impact during divorce settlements. Here’s what to remember:
- Recreational activities like movies, concerts, and sporting events are considered entertainment expenses.
- Vacations purely for fun are seen as non-essential and may affect how money is divided.
- Frequent dining out, especially at fancy restaurants, could be scrutinized as an entertainment expense.
- Gym memberships or club subscriptions fall under entertainment expenses.
- Children’s entertainment activities, while important, can still be reviewed for fairness.
By understanding these key points and keeping detailed records, you’ll be better prepared for how the court might handle entertainment expenses.
