Financial disagreements are a common cause of divorce for many Americans. From wasteful spending to hidden assets, money is often the source of marital disputes that eventually lead to divorce. Dissipation is when a spouse conceals or deliberately wastes marital assets before their divorce. Frivolous spending for the benefit of one spouse can be a sign of marital dissipation. This can happen both early on and later in the marriage, so it’s important to be aware of what might qualify as a dissipation of marital assets. Examples include:
- Excessive spending on drugs or alcohol
- Increased spending on leisurely activities
- Creating debt deliberately
- Selling property for less than it’s worth
- Spending on extramarital affairs
Does This Affect Equitable Distribution?
During the divorce proceedings, the court will consider “contributions” made to the marriage by each spouse. The court will also gauge negative contributions before deciding on an equitable distribution award. This means assets irresponsibly spent or sold during the marriage can have a significant impact on the court’s decision. When one spouse dissipates assets, it creates an unfair financial imbalance for the other spouse. However, just because money has been spent or assets sold, does not mean it will necessarily be deemed wasteful. There is no precise definition of wasteful dissipation, so it’s a good idea to speak with an attorney if you are divorced or thinking about getting a divorce.
Our North Carolina divorce lawyers can help you determine if your spouse’s spending patterns are wasteful or not. At Krusch & Sellers, P.A., we handle all kinds of legal matters regarding divorce. Our firm has earned high ratings for our ethics and skill (AV Preeminent® Rating) and have been recognized for our achievements and client service (Super Lawyers® Selection, Superb Avvo Rating). We’re ready to help with your case!
Contact our North Carolina team of divorce lawyers, or call (704) 343-8811 to schedule an appointment.