Divorcing spouses have a challenging process ahead. They have to separate their lives, which can take months of negotiations. In some cases, they may eventually need to present their disagreements to a judge because they cannot cooperate with each other. Property division disagreements are a leading cause of divorce disputes between spouses.
They may find it impossible to agree with one another on what is fair. In such cases, judges may eventually need to look at information about the marital estate and decide how to divide both assets and debts. Sometimes, one spouse takes action on their own in an attempt to subvert the legal process for their own benefit. They might hide assets to prevent sharing them. Others take things a step further by actively destroying assets or damaging the marital estate.
The dissipation of marital resources deprives one spouse of their fair share of the marital estate. When people have proof of dissipation, that can alter the outcome of litigated property division proceedings.
What behaviors may constitute dissipation?
There are a variety of inappropriate actions that can diminish the value of the marital estate. The dissipation of marital property typically involves intentional actions that affect shared resources, possibly while simultaneously damaging the marital relationship.
Frequently, dissipation involves unusual financial conduct immediately before filing for divorce or in response to the divorce. One spouse goes out on a spending spree. They empty bank accounts or max out credit cards buying unnecessary items or resources intended for them to live separately. They diminish the marital estate out of spite or for their own benefit.
Other times, people actually destroy assets. They could throw items away, thus depriving both spouses of their value. They might give assets away to others or sell them for far less than their fair market value.
Dissipation can also involve the use of marital resources for purposes that damage the marital relationship. Funds spent on gambling or substance abuse might theoretically constitute dissipation. People can also typically claim any amount of money spent on an extramarital affair as dissipation.
Those hoping to hold a spouse accountable for dissipation may need support as they review financial records and prepare for court, and that’s okay. Establishing that dissipation occurred can help people improve the overall fairness of a property division settlement.