Determining how to split the marital property is one of the biggest challenges couples face when divorcing. It can sometimes lead to spouses fighting or resorting to underhand tactics to try and gain an advantage over each other. One of those tactics is to dissipate assets.
What is asset dissipation?
The dissipation of assets refers to a spouse’s undue spending during or just before a divorce. For example, they might decide to replenish their wardrobe with designer clothes using money from the joint bank account, figuring their spouse will effectively pay for half of it. Or they might use the joint credit card to fund an all-expenses week away for themself and a few friends.
By spending this money, the spouse is harming their own financial situation as well as their spouses. They will have less money in the joint bank account or more debt on the joint credit card. However, unlike their spouse, they are getting some benefit – be it a new set of clothes, a holiday or whatever, in addition to the satisfaction of getting one over on their spouse.
It is very different from someone attempting to hide assets for those assets to escape the property division process and be available for them alone once the divorce is done.
Dissipating or hiding assets is not allowed in a divorce and a court will look unfavorably on someone who does it. If you believe your spouse has been doing this then getting help to collect proof to present to the court may enable you to right the balance in the divorce settlement.