Dissipation of Assets
The deliberate waste or destruction of marital assets by one spouse, typically in anticipation of or during divorce. Courts can penalize the dissipating spouse in property division.
Understanding Dissipation of Assets
Dissipation occurs when one spouse intentionally depletes marital assets for non-marital purposes — such as spending lavishly on an affair partner, gambling away savings, making risky investments, or giving large gifts to family members. Courts can account for dissipated assets by awarding the innocent spouse a larger share of remaining property. The accusing spouse must typically show that the spending occurred after the marriage breakdown and was not for a legitimate marital purpose. Forensic accountants may be needed to trace dissipated funds.
Real-World Examples
The husband spent $80,000 on his girlfriend during the last year of the marriage, and the court credits that amount to the wife's share of marital assets.
Related Terms
Any property or item of value owned by either or both spouses that is subject to division in a divorce. Assets include real estate, bank accounts, investments, retirement funds, businesses, and personal property.
ComminglingMixing separate property with marital property in a way that makes it difficult or impossible to distinguish between the two. Commingled assets may be treated as marital property.
Contempt of CourtThe willful disobedience of a court order. In divorce, contempt can result from failing to pay support, violating custody orders, or ignoring restraining orders.
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This definition is provided for educational purposes only and does not constitute legal advice. Divorce laws and terminology may vary by state and jurisdiction.
Always consult a licensed attorney in your area for advice specific to your situation.