Spouses dividing their marital property have the option of litigating or settling. Sometimes, people approach the divorce process pragmatically. They work together to achieve the best possible outcome and to limit how much they spend on the divorce.
Other times, divorce brings out the worst in people. They undergo a shocking change in personality and become very aggressive about minor matters. Typically, personal misconduct during the marriage has very little influence on the outcome of property division proceedings.
However, there are exceptions for cases involving intentional financial misconduct. If one spouse dissipates marital property to diminish what the other spouse receives during the divorce, that could affect how the courts handle property division matters. What types of conduct may constitute dissipation before or during divorce proceedings?
Unusual and unnecessary spending
People may respond to a divorce filing by wasting as much money as possible. They might go on a shopping spree and empty out savings accounts. They might max out shared credit cards. The goal is to pass more debt to the other spouse or reduce what they received from the marital estate. A drastic change in spending habits can be indicative of attempts to dissipate marital property.
Funds wasted on destructive conduct
The use of marital assets for purposes that undermine the marital relationship can constitute dissipation. Frequently, people spend thousands of dollars a month on hotel rooms and other expenses related to extramarital affairs. The money spent or the debts accrued while conducting an affair could constitute dissipation. So could funds secretly spent on a gambling problem or a substance abuse issue. When spouses spend their money in a way that harms the marital relationship and in secret, their conduct may constitute dissipation.
Destroying marital assets
People on the edge of divorce or navigating divorce proceedings sometimes have intense negative emotions that they struggle to control. They might feel compelled to lash out, and they may target certain assets as a way to vent their anger.
Videos of people smashing gaming systems or burning clothes often go viral. While those behaviors may feel cathartic in the moment, they destroy marital assets and can have a major impact on the outcome of property division proceedings. The more resources that people destroy, give away or sell for an unreasonably low value, the more their conduct might alter the outcome of property division proceedings.
Those who suspect that their spouses have engaged in wasteful or inappropriate financial conduct may need help preparing for divorce. Proving that dissipation occurred can lead to a more reasonable property division outcome.
