Couples in high-asset marriages typically have many resources to address when they divorce. They also enjoy a relatively high standard of living that can potentially complicate the divorce process.
For example, one spouse may have intentionally wasted marital property. The dissipation of marital assets can significantly diminish the value of the marital state.
If one spouse destroys assets, accrues unnecessary debt or uses marital resources for a purpose that damages the relationship, the courts may consider their financial misconduct during the property division process.
What is dissipation?
A variety of different behaviors can lead to claims of dissipation. If one spouse spends thousands of dollars on credit cards before filing for divorce, that unnecessary and unusual spending could give rise to claims of dissipation.
Destroying or giving away assets is also a form of dissipation. Spending the money in joint bank accounts frivolously can also constitute dissipation. Even money spent on an extramarital affair, which could add up to hundreds of dollars or more each month, can constitute dissipation.
How do the courts respond?
When there is clear financial evidence of dissipation and the amount of funds wasted or the value of assets destroyed is significant, a judge may consider financial misconduct when dividing marital property. Although most forms of marital misconduct do not influence property division proceedings, financial misconduct that damages the marital estate is one of the exceptions to that rule.
People hoping to hold spouses accountable for dissipation during property division proceedings may need help as they gather evidence. Proving that a spouse wasted or destroyed resources may alter the outcome of high-asset divorce proceedings.