What Does Dissipation of Marital Assets Mean?

 Posted on February 07, 2022 in Divorce

Having a spouse who is “bad with money” can be tricky. It can even lead to divorce. Dissipation of marital assets is more than being bad with money. It refers to one spouse–unilaterally, without the other’s agreement0–spending a large amount of marital funds recklessly on things that do not benefit the marriage. This type of money-wasting behavior often leads to debt, problems with credit scores, or difficulty paying routine expenses. It can also prompt the more financially responsible spouse to file for divorce out of frustration and a need to protect themselves. Dissipation can become a major factor during the division of assets.

If you believe that your spouse’s reckless spending amounts to dissipation, it is important to work with a divorce attorney who may be able to help you recover some of the funds your spouse dissipated during the divorce.

What Are Some Examples of Spending That Amount to Dissipation?

First, it is important to note that dissipation refers to the squandering of funds by one spouse without the agreement or participation of the other. If both spouses engage in this type of spending together, it will not be considered dissipation for the purposes of asset division during a divorce action. Additionally, this spending must happen at a point when the marriage is in an “irretrievable breakdown.” Generally, this means that even if no one has filed for divorce yet, it should be on the radar.

Examples of spending by one spouse that the court is likely to identify as dissipation include:

• Gambling - A spouse with a gambling problem can lose quite a large amount of money at a casino, racetrack, lottery tickets, or in less legal types of gambling.

• Affair - A spouse who is having an affair may spend a significant amount of money doing so. The cost of hotel rooms, travel, or even gifts to a mistress or paramour can add up quickly. Money spent on sex workers may also fall into this category.

• Addictions - If your spouse was addicted to drugs or even alcohol, you know firsthand how expensive it can be to maintain an addiction.

• Destruction - In some cases, an angry or mentally ill spouse will flat-out destroy marital assets. For example, if you move out to get away from your spouse and they promptly begin causing significant damage to the marital home, or they destroy your car out of anger, this is likely to count as dissipation.

• Giving - Should your spouse have given away a significant amount of money, whether to family members, friends, or an affair partner, without your consent, this may be seen as dissipation.

The good news is that during equitable division, Illinois courts can award the innocent spouse a larger share of the marital assets in order to make up for the dissipation. It is best to work with a qualified divorce attorney who can help you demonstrate to the court that what happened in your marriage should be considered dissipation.

Call a DuPage County Divorce Lawyer

If your spouse dissipated marital funds when the marriage was on its way out, Davi Law Group will fight for you to be reimbursed during asset division. Our experienced Wheaton divorce attorneys can help you build evidence of the dissipation and make a strong case for you to be paid back. Call 630-657-5052 for a free consultation.

Source:

https://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm