If you are going through a divorce and believe that your spouse may be dissipating marital assets, it is important to take action quickly. Dissipation refers to the intentional waste, transfer or hiding of marital property to prevent it from being fairly divided during divorce. This kind of behavior can significantly affect the outcome of property division and may result in serious legal consequences for the spouse engaging in it.
Dissipation often occurs when one spouse anticipates divorce and tries to gain a financial advantage. This might include draining bank accounts, racking up excessive debt, giving away property, gambling away funds or spending large amounts unnecessarily. These acts are not only unfair, but they may also violate a spouse’s fiduciary duty to preserve marital property.
In many states, once divorce proceedings are underway, automatic temporary restraining orders go into effect. These orders prohibit either spouse from selling, hiding or wasting marital assets. In other states, these orders may be requested and granted at a judge’s discretion. If your spouse violates such an order, the court may penalize them by awarding you a larger share of the remaining assets or ordering restitution.
Don’t panic. Plan a thoughtful response instead.
Keep in mind that not all spending qualifies as dissipation. Courts consider whether the spending at issue was unusual, done without your knowledge and not in the interest of the marriage. For example, buying groceries or paying regular bills likely won’t qualify, but transferring thousands to a hidden account or spending excessively on luxury items might.
Know that this isn’t a situation that you have to deal with alone. A skilled legal team can help you assess your suspicions, file appropriate motions and request injunctions or asset freezes if necessary. Swift action can help preserve what is rightfully yours and work to ensure that a fair resolution is reached so that you can get on with the rest of your life.