State law requires a fair or equitable distribution of marital property, as well as any marital debts. Unfortunately, some situations make it much harder to achieve that goal.
If one spouse has engaged in financial misconduct either before filing for divorce or in response to service with divorce papers, factoring their inappropriate financial activities into the final settlement might be necessary. One of the ways in which people may attempt to manipulate property division outcomes involves the intentional reduction of the marital estate by selling valuable property for far less than it is actually worth.
Discounted sales affect the marital estate
The dissipation of marital property involves any intentional conduct intended to diminish the value of the marital estate. Selling marital assets for less than they are objectively worth is a common form of dissipation.
In some cases, one spouse sells property to a friend, family member or co-worker with the intention of regaining control by purchasing it back after the completion of the divorce. Selling a vehicle for $500 could be indicative of this type of misconduct.
In other cases, the goal may be to punish a spouse by selling assets that they enjoy or that technically belong to them for less than those resources are worth. Selling a spouse’s tools or personal computer to strangers for a few dollars could reduce what the marital estate is worth and warrant a response by the affected spouse.
Calculating the fair market value of assets sold for inappropriately low amounts can help people pursue justice during property division proceedings. An attorney can provide insight into whether pursuing a dissipation claim is worthwhile in re: a particular divorce.