Getting a divorce may seem like a simple process, but there are situations that may complicate things. One concern that many couples have is what happens when one spouse improperly spends or wastes marital property before the divorce is finalized. Knowing about this issue can help you spot the warning signs and take appropriate action when it happens.
What does dissipation mean?
Dissipation of assets refers to the intentional waste or improper depletion of marital property by one spouse. This usually happens when they know the marriage is ending and they start making financial choices that help only themselves.
Because Kentucky uses equitable distribution when dividing marital property, the court will focus more on fair outcomes rather than an automatic 50/50 split. As a result, dissipation can significantly affect how the court determines what is fair.
What are common examples of this?
Dissipation can take many forms, such as:
- Spending marital funds on an extramarital affair, including gifts, travel and lodging
- Gambling away savings at casinos or through online betting
- Making large, unnecessary purchases without the other spouse’s knowledge
- Transferring money or property to family members or friends
- Selling assets below market value
When a spouse gambles away $30,000 or spends $15,000 on gifts for a romantic partner, that money no longer exists to be split. Without a dissipation claim, you would only receive your share of what remains rather than what should have been available.
What must you prove to make a claim?
If you believe your partner dissipated marital prosperity, the burden of proof falls on you. Kentucky courts require you to establish two key elements.
First, you must prove that the spending happened while the marriage was falling apart. This does not always mean it happened only after divorce papers were filed. Courts may consider when the couple stopped acting like a married couple, when one spouse moved out or when major problems started.
Second, you must show that your partner spent marital property on something unrelated to the marriage or used it only for personal benefit during the breakdown of the relationship.
Bank statements, credit card records, loan applications and receipts can all serve as evidence. You may need testimony from financial experts or forensic accountants who can trace where the money went.
Once you provide enough proof, the burden shifts to your spouse. They then need to show that they spent the funds for valid reasons such as paying household bills, supporting the family or maintaining marital property.
How can you protect your interests?
Proving dissipation requires a thorough investigation and strategic presentation of evidence. A seasoned family law attorney can help you gather the necessary documents and present a compelling case to the court.
Your attorney may also work with financial professionals to conduct an analysis of the marital finances. They can issue subpoenas for financial records, take depositions and use other legal tools to uncover hidden assets or improper spending.
Legal representation becomes especially valuable when the opposing party has already engaged in financial misconduct. Your attorney can seek court orders to prevent further dissipation and protect remaining assets while your case proceeds.
