Reclaiming Dissipated Assets in a High Asset Divorce

 Posted on September 20, 2019 in Complex Property Litigation

Because Texas is a community property state, divorcing couples are usually required to divide all assets acquired during the marriage itself in an equitable manner. In most cases, both spouses retain access to these funds and assets while the divorce is pending, so that they can pay reasonable expenses, such as mortgage payments, utility bills, and childcare costs. Spouses who step outside of these limits could be found to have wasted marital assets, an act that is not taken lightly by divorce courts. If you are preparing for or have already filed for divorce and believe that your own spouse is wasting marital assets, you should contact an experienced high asset divorce lawyer who can ensure that your assets are protected.

What Qualifies as Wasting Marital Assets?

Known as dissipation, the wasting of marital assets during a divorce is prohibited under Texas law, which makes it unlawful to dissipate marital property by:

• Taking out a loan that has not been authorized by the other spouse
• Spending marital funds on vacations
• Making expensive purchases without the other spouse’s approval
• Withdrawing large sums of money from joint accounts
• Giving extravagant gifts to friends and family members
• Gambling large sums

Spouses who discover that their significant other has engaged in this type of waste in order to deprive the other party of an equal share of those assets upon divorce may have legal recourse, so it is important for individuals who find themselves in this position, to speak with an attorney as soon as possible.

Potential Remedies

When one spouse can prove that the other is wasting marital assets in an attempt to diminish his or her own share of the property, a court could step in and grant a temporary restraining order. These are court orders that prevent either party from changing their financial status in a significant way while a divorce is pending. Unfortunately, a lot of damage can be done before these types of orders kick in, in which case, the wronged spouse may need to calculate the amount of waste and then petition the court to divide the remaining marital property in such as way that the at-fault spouse receives a lesser share. In some cases, judges will even award the wronged spouse a money judgment to compensate him or her for the other spouse’s conduct.

Call an Experienced Austin, TX High Asset Divorce Attorney

If you believe that your spouse is purposely wasting assets in order to deprive you of an equal share of that property upon divorce, you need the advice of an experienced attorney who can help you hold that party accountable. Please call Powers and Kerr, PLLC at 512-610-6199 today to speak with a knowledgeable and skilled Austin, Texas high asset divorce lawyer about protecting your own marital property during divorce.

Source:

https://statutes.capitol.texas.gov/Docs/FA/htm/FA.3.htm