When married couples divorce, finding ways to divide their assets can be a real challenge. Sometimes, one spouse is so angry about the idea of sharing marital property or income with the other that they intentionally waste or destroy marital property.
The dissipation of marital resources is a common form of misconduct that occurs during contentious divorces. People who feel bitter about an upcoming divorce may try to waste marital property as a way of gaining an advantage or punishing their spouse. The three types of behavior below might constitute dissipation and could influence how judges divide property when people divorce.
Wasting funds on an affair
Few things destroy a marital relationship more quickly than romantic and sexual infidelity. Someone who discovers an affair may file for divorce shortly thereafter. A thorough financial review is often important in scenarios involving extramarital affairs. One spouse may have spent thousands of dollars on trips, hotel rooms, restaurant dinners and gifts for an affair partner. The other spouse can either hold them accountable for the use of marital income or exclude certain debts from the marital estate because they relate to infidelity.
Destroying marital property
Many people react to news of a divorce or spousal misconduct aggressively. They may smash electronics or burn clothing. The intentional destruction of marital property constitutes dissipation. So does intentionally selling marital assets for less than their fair market value. Scenarios in which one spouse tries to diminish the marital estate or the property of the other through inappropriate sales or outright asset destruction may lead to claims of dissipation in family court.
Inappropriate spending before the divorce
Someone intending to file for divorce might engage in dissipation in the months leading up to that move. They may spend thousands of dollars on spa treatments or designer watches. Some people empty out savings accounts or burn through every paycheck they earn until after they file for divorce. Others accrue huge amounts of debt and then expect their spouse to help them pay off those balances. Wasteful spending that differs from someone’s usual financial habits may constitute dissipation and can affect how the courts divide property.
Conducting a thorough financial review with the help of a skilled legal team is often necessary to obtain a fair property division outcome when preparing for a divorce. Financial records showing that dissipation occurred can help people negotiate with their spouses or influence how a judge divides marital property and debts.