When one spouse spends marital property for personal reasons or on things unrelated to the family’s needs in the lead-up to divorce, it can affect how the marital estate is divided. Common examples include gambling, extravagant purchases or giving away money without the other spouse’s knowledge.
In legal terms, this is called ‘dissipation of assets’, and it’s among the factors New Jersey divorce courts consider when splitting assets during divorce.
How courts address dissipation of marital assets
New Jersey courts aim for fairness rather than an automatic 50/50 split when dividing marital assets. If the court determines that one spouse dissipated marital assets, it may adjust the division to account for the misuse. The spouse responsible for wasting marital property may receive a smaller portion of the estate to compensate the other for the depletion.
Gathering evidence
Proving misuse of marital assets requires clear documentation of the amount spent and the reasons for the spending. Courts don’t simply look at whether money is gone; they also examine intent. In other words, you must show that your spouse intentionally used marital property for a purpose unrelated to the marriage at a time the relationship was already breaking down.
Evidence like bank and credit card statements, unusual property transfers and inflated business expenses can help demonstrate unusual spending patterns and intent.
Act swiftly to protect your interests
The longer you wait to act on marital asset dissipation, the harder it becomes to trace missing assets and prevent further losses. Gather essential evidence and keep copies in a secure location. Seeking legal guidance can also help you take immediate steps to address the matter and understand your legal options.