Some people going through a divorce make unfair moves to gain a strategic advantage in property division. One of those moves is intentionally wasting marital assets to lessen the other spouse’s share in the divorce settlement. They are aware that by reducing the overall marital funds available for division, the other spouse will receive a smaller share than if the actual value of assets were maintained.
So, how do spouses dissipate assets?
Unusual spending patterns
You should be concerned if your spouse starts to engage in frivolous spending, as this can potentially reduce the marital estate. For instance, they make large purchases, go on expensive vacations, gamble excessively, withdraw large amounts of cash from joint accounts, adopt expensive hobbies, incur unnecessary credit card debt, buy expensive gifts for others or give away valuable assets.
Other commonly reported strategies are a spouse neglecting a marital asset like a house or car to let it decrease in value, allowing family heirlooms to be destroyed and reducing the value of the family business by acquiring new loans or intentionally damaging property.
The amount your spouse spends needs to be substantial to accuse them of dissipation. A minor disagreement on how they are spending money on their new life may not be considered dissipation of marital assets. For example, when they rent an apartment (not a luxurious one) or use funds for normal living expenses, legal representation, salaries for employees and child-related expenses if you have a child.
Disapproving of how your soon-to-be ex-spouse uses money does not automatically mean they are dissipating funds. You need solid evidence to show they are mismanaging assets. Forensic accounting and legal guidance can help you prove that your spouse wants you to get an unfair share.