In the interest of fairness during a divorce, both spouses are required to provide a list of their assets and debts to the court. This allows the couples to negotiate an agreed-upon division of the marital property or – when negotiations fail – the court to determine what is fair and legally acceptable.
However, some spouses try to cheat the system. One way they do this is by hiding assets. Another is by spending down the marital assets or disposing of marital property without their spouse’s knowledge. This is known as “dissipation.”
Why do spouses sometimes dissipate marital assets?
In essence, it comes down to a mix of avarice and anger. Spouses who do this typically feel that they will be less affected by the loss of that money than their spouse, and they want to “punish” their spouse financially. They may know that their spouse will be sorely affected by the loss of those funds, while they have a well-paying job where it will be easy to recover. Others may also feel the loss, but they aren’t thinking ahead or care more about depriving their spouse of something than they do about the consequences.
Asset dissipation is unlawful, and divorce courts can take steps to repair the damage done – if they know it has happened. It’s best to keep an eye on your accounts as the divorce proceeds and take a look back over the past few months, too, as some spouses begin wasting marital funds well in advance of the actual divorce filing. If you notice unusual expenditures by your spouse, it’s worth mentioning them when you seek legal guidance for your divorce. Understanding your financial picture and what your options may be can help you plan for the future.