What Is Dissipation Of Assets In Divorce And What, If Anything, Can You Do About It?
No one divorce case is ever the same and it is important to notice any signs of fraud or other negative motivators early on. In doing so, you’ll be hyper-aware of your spending and what you actually consider an asset.
The following article highlights the definition of “dissipation of assets” and what you and your spouse can do to be mindful. Consider all shared accounts and financial records and be vigilant of any unfamiliar activity.
If you find yourself wanting further direction, we are always available to answer any questions and help put you in the right direction.
Some couples divorce amicably. They recognize that their marriage is best ended, and they work to come to a fair resolution as soon as possible so they can get on with their lives. For other couples, divorcing is much more complicated. In these cases, greed, anger, and spite are primary motivators, and the process becomes war-like, with battles fought over every dollar.
As a divorce financial advisor who works exclusively with women, I’ve seen husbands use just about every dirty trick in the book to keep from having to divide assets with their wives. One of the most common ways is to “dissipate,” or waste, marital assets. When a husband tries to dissipate assets, it means he’s intentionally squandering marital property to prevent his wife from getting her fair share of it in the divorce settlement.
How can a husband do that?
Well, he could dissipate assets by spending money on a girlfriend. Or he could gamble. A spiteful husband with a high income might have no problem throwing money away, knowing he’ll be earning it back after the divorce. “Easy come, easy go,” as they say… and the most vindictive husbands would rather lose the money outright than split it with their wives.