Four Common Examples of Asset Dissipation During Divorce

 Posted on November 22, 2024 in Division of Property

Perhaps you and your spouse have not been getting along for years. You may have contemplated divorce, and even discussed it, but neither of you took the initiative. Now, your spouse appears to be spending large amounts of money somewhere, and you are worried.

Financial trouble is a very common reason for divorce, and a spouse who has simply always had a bad spending habit may leave both spouses in serious debt without any solution for the spouse who was more responsible with money. However, in certain situations, one spouse’s spending may qualify as something called "asset dissipation." The word dissipation essentially means "waste," and in the context of divorce, the Supreme Court has defined dissipation as using marital property (usually money) for the sole benefit of one spouse, for things unrelated to the marriage, while the marriage is permanently breaking down.

If a spouse has been dissipating assets, it may be possible to recover the wasted money during the divorce process – but only if the behavior is of a certain kind, and only if action is taken within a certain time frame.

If you are wondering if your spouse’s behavior qualifies as dissipation, the only way to really know is to discuss your case with an Illinois divorce attorney and bring the issue up in a court case. That being said, there are certain behaviors that Illinois Judges frequently treat as dissipative.

Gifts and Transfers

People who believe they are headed toward a divorce will sometimes try to get the upper hand in marital property negotiations by simply hiding assets to recover at a later time. If you discover your spouse has been giving away large amounts of money or valuable property to friends or family – even if your spouse claims that the property has been given only as a gift – if it was done without your knowledge or consent, this may be considered dissipation.

Gambling, Compulsive Spending, or Drugs and Alcohol

Many people drink, gamble, shop a little more than they should, or even do small amounts of illicit drugs without jeopardizing their financial future. But when this behavior becomes so wasteful that a marriage’s finances are seriously threatened, these behaviors may be viewed as dissipation.

Affairs 

The most common causes of successful asset dissipation claims are extramarital affairs. Carrying on a relationship outside of a marriage is not only expensive, but is almost always done without the other spouse’s knowledge, making many affairs a clear-cut case of marital asset dissipation.

Neglected Financial Responsibilities

One of the most sad and shocking aspects of divorce for many people is how far their spouse is willing to go to lash out against them. When one spouse purposefully does not make mortgage payments, allows precious family heirlooms to be destroyed, or allows a family business to be run into the ground, all to get back at a spouse during the asset division process, this may be asset dissipation.

How Can I Get Back Money Lost in Asset Dissipation? 

Trying to recover money dissipated by one spouse is not always possible, especially if a couple does not have much money to begin with. However, marital property needs to be divided in every divorce, and an asset dissipation claim may allow the spouse victimized by the dissipative behaviors to recover at least a portion of the wasted assets. If you want to take this route, you will need to: 

• Identify the dissipation, with proof like receipts, photos, bank statements, etc.

• Establish a timeline that includes the date when your marriage began irretrievably breaking down and that the asset dissipation happened within that time frame.

• Show that it has not been more than three years since you knew, or more than five years if you did not know, about the dissipation.

• File a notice of intent to claim dissipated assets, which happens around the discovery and trial dates.

• Argue your case before the Judge. You will need to demonstrate by clear and convincing evidence that marital assets were wasted.

If this all sounds intimidating and difficult, not to worry – you will not be doing this on your own. The experienced attorney from The Law Office of Nicholas W. Richardson, P.C. will be there to guide you every step of the way and fight for your right to recover as much of the marital property as possible.

Contact a Palatine, IL Divorce Lawyer Right Away

If you are concerned your spouse is wasting your marital estate, you should contact an Arlington Heights, IL asset dissipation in divorce attorney right away. The sooner you take action, the more likely you may be to recover the money your spouse has dissipated. Call The Law Office of Nicholas W. Richardson, P.C. now at 847.873.6741 to schedule a free, confidential consultation.