What Is Dissipation of Marital Assets?

When a couple goes through a divorce, one of the biggest concerns on their mind is the division of assets. This includes property, investments, and other valuable possessions acquired during the marriage. However, there is another aspect to asset division that many couples may not be aware of – the dissipation of marital assets. At the Women’s Divorce & Family Law Group, we’ve seen countless people suffer financial losses due to this issue, and we don’t want to see you suffer the same fate. In this post, we’ll explain what dissipation of marital assets entails and how to protect yourself.

Understanding Dissipation of Marital Assets

Dissipation of marital assets refers to the intentional or reckless wasting, depletion, or destruction of joint marital property by one spouse during the marriage. This can include withdrawing large sums of money from a shared bank account, selling off valuable possessions without the other spouse’s consent, or spending excessive amounts on non-essential items. Essentially, it is any action that results in a loss of value in marital assets.

Why Does Dissipation Occur?

There are various reasons why one spouse may engage in the dissipation of marital assets during a divorce. These can include:

• Wanting to seek revenge on the other spouse
• Trying to hide assets from the other spouse
• Feeling entitled to more than their fair share of assets
• Financial mismanagement or addiction issues

Regardless of the reason, dissipation can have severe consequences for both parties involved in the divorce.

How Does Dissipation Impact Asset Division?

Dissipation of marital assets can significantly impact the division of property and finances during a divorce. In many cases, it may result in an unequal distribution of assets, with one spouse receiving less than they are entitled to. This can ultimately lead to financial instability for one party, especially if they are unaware of the dissipation and its impact.

Signs of Dissipation

Identifying if your spouse is dissipating marital assets may be challenging, especially if they are trying to hide it. However, there are some red flags that you can look out for:

• Unexplained changes in financial habits: If your spouse suddenly starts spending more money on non-essential items or indulging in expensive hobbies, it could be a sign of dissipation.
• Missing financial records: Your spouse may try to hide evidence of their spending by destroying bank statements or other financial records.
• Sudden lifestyle changes: If your spouse has always been financially responsible but starts living beyond their means without a valid explanation, it could be a sign of dissipation.

How to Protect Yourself Against Dissipation

If you suspect that your spouse may be engaging in the dissipation of marital assets, it’s crucial to take action to protect yourself. This can include:

• Gathering evidence: Document any suspicious financial activity or sudden changes in spending habits.
• Seeking legal advice: Consult with a divorce attorney with experience handling cases involving the dissipation of marital assets.
• Freezing joint accounts: If possible, freeze all joint accounts to prevent further depletion of assets until the issue is resolved.
• Filing for an injunction: In some cases, it may be necessary to file for an injunction to prevent your spouse from taking any further actions that could result in the dissipation of assets.

Don’t Be Taken Advantage Of

Divorce is already a stressful and emotionally challenging process, and the added issue of dissipation of marital assets can make it even more difficult. That’s why educating yourself on this topic and taking the necessary steps to protect your financial well-being during a divorce is essential. If you have any concerns about the dissipation of marital assets, don’t hesitate to reach out to our team at The Women’s Divorce & Family Law Group. We are committed to helping you navigate the complexities of divorce and ensuring your rights are protected.