Can anybody out there tell me if there are any other legal options to divorce for a mentally sick spouse that provides financial stability . The bottom line is that I don't want to resort to this option. Neither does she when thinking clearly. I would prefer to take care of my spouse in a safe environment. This illness is not her fault but I'm using the law to fight the law which has no safeguards to prevent a mentally ill spouse endlessly filing for divorce and changing her mind which will leave us financially ruined. Guardianship doesn't prevent it either and would end up in a costly court battle. What about getting complete power of Attorney during a moment of clarity when agreement can be reached. It's seems mad that there is no provision for this kind of situation.
You can file a Petition for a Legal Separation. That allows for both of you to still be covered under the same insurance. You can try to get a durable medical power of attorney and durable financial power of attorney. However, given the contentiousness of the situation that you describe, that might only end up in litigation as well.
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If you have not consulted with an attorney to discuss your options, you probably are at a point where you need to do this. The tragic part of your situation is that no one can control the actions of a mentally ill person who is acting out her illness for reasons only she understands. If she is truly not able to make rational decisions, you may wish to have a guardian or conservator appointed for her. A guardian can decide whether to pursue a dissolution of marriage and a conservator manages the protected person's funds.
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