People preparing for divorce may find themselves disagreeing about many details. Frequently, property division is one of the biggest sources of conflict between spouses. Spouses often have different ideas about what assets are subject to division and also what those assets are worth.
It can be very challenging to reach an agreement on the fairest way to split up marital property. Allegations of misconduct may only worsen the situation. In scenarios where either spouse could credibly assert that the other did something intentional to diminish the marital estate, they could ask the courts to consider that when dividing property or allocating responsibility for marital deaths.
Dissipation is the technical term for inappropriate conduct intended to diminish the value of the marital estate. What circumstances might warrant allegations of dissipation during divorce?
1. Money spent on adultery or addiction
Any use of marital funds for purposes that damage the marital relationship, such as income spent on hotel rooms and gifts for affair partners, can constitute dissipation. The courts may also classify debts accrued while conducting an affair as dissipation and may not include them in the marital estate.
Similarly, the use of marital resources to support an addiction to gambling, alcohol or drugs could lead to claims of dissipation. The courts can factor the amount wasted into decisions about the division of marital debts and assets.
2. The destruction of marital property
Sometimes, people take their anger out on objects toward the end of a marriage. Someone who discovered an affair might destroy the vehicle, clothing or other property of the cheating spouse.
While they may feel that the situation justifies their actions, the destruction of marital property has an impact on both spouses’ financial circumstances. Actively destroying, throwing away or giving away marital property could impact the distribution of assets.
3. Unnecessary, unusual spending
Sometimes, people on the cusp of divorce drastically change their financial habits. They max out their credit cards on frivolous purchases or spend every spare cent they can access on resources they intend to retain after the divorce. Particularly when financial records show that conduct immediately prior to divorce is unusual, the spouse spending the money or accruing credit card debt may ultimately be responsible for those actions.
Thoroughly reviewing financial records can help people push for fair divorce outcomes. Recognizing dissipation can be the first step toward a fair property division outcome during a contentious divorce.
