How the Dissipation of Assets During Divorce Can Affect Your Future

 Posted on February 20, 2018 in High Asset Divorce

Even those who have seen their divorce coming for many years may still find themselves fearful and financially unprepared for life after divorce. Although the transition will most likely be emotional, there are ways to ensure that both parties receive their fair share of marital assets and so are not faced with financial difficulties. Doing so often requires an in-depth search of financial records, which although stressful and difficult, will help make it difficult for one spouse to hide or waste assets. Wasting, or dissipating assets is unfortunately not uncommon during high asset divorce, especially when the relationship between the parties is strained or acrimonious. For help protecting your own financial interests, please contact a member of our dedicated Leander high asset divorce legal team for advice.

What Is Asset Dissipation?

Unlike the hiding of assets, intentional dissipation involves the use of marital funds, or a marital asset, for a purpose that does not benefit the marriage. This often takes the form of buying extravagant gifts or otherwise making lavish and unnecessary purchases for the buyer’s own benefit. In fact, dissipation can even take the form of transferring property to a third party or suffering excessive gambling losses. It is also important to note that dissipation of assets is not just a continuation of typical overspending, but is waste that starts after the decision to get divorced is made.

Preventing Asset Dissipation

This type of behavior can be devastating for the non-dissipating spouse, so it is important to take steps to prevent it, such as:

• Monitoring all joint accounts for unbudgeted or unexplained spending;
• Consult with a forensic accountant before filing for divorce;
• Remain alert for unexplained charges to joint credit cards; and
• Attempt to identify all marital assets.

Although it can be difficult to discover or prove that a spouse is wasting assets, it is still important to be aware of the possibility, as one spouse could end up missing out on the equitable division of marital property. This can be especially devastating for spouses who do not earn a salary but are responsible for child care, or who gave up career opportunities in order to support the other party’s endeavors. It is particularly important in these situations to remain vigilant for signs of dissipation so that further waste can be prevented before the marriage is officially dissolved.

Call Today for Help with Your Case

At Powers and Kerr, PLLC, our dedicated Leander high asset divorce lawyers are committed to helping our clients obtain fair divorce settlements, so that they can move on with their lives. For help with your own case, please reach out to us today and learn more about how we can provide you with professional assistance.

Source:

http://www.statutes.legis.state.tx.us/Docs/FA/htm/FA.3.htm

https://www.forbes.com/sites/jefflanders/2016/11/01/what-is-dissipation-of-assets-in-divorce-and-what-if-anything-can-you-do-about-it/#34a5d4cc3ec0