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Marital asset dissipation in a high-asset divorce

On Behalf of | Oct 13, 2023 | Divorce

One factor that often arises in a high-asset divorce is marital asset dissipation.

This term refers to the improper use or wasteful spending of marital assets by one spouse during the marriage. This can affect the equitable distribution of assets during divorce proceedings.

Understanding marital assets

Marital assets include any property or wealth acquired during the marriage. This may include real estate, financial investments, businesses, valuable possessions and retirement funds. These assets are typically divided fairly between both parties, ensuring an equitable outcome.

Identifying marital asset dissipation

Marital asset dissipation occurs when one spouse squanders shared assets without the other spouse’s knowledge or consent. It could look like excessive spending, hidden bank accounts or selling marital assets without proper disclosure.

Consequences of marital asset dissipation

The wasting of assets can significantly impact the distribution of assets. The court may adjust the division of property to compensate the innocent spouse for the lost or wasted assets. In essence, the spouse responsible for dissipating marital assets may receive a smaller share of the remaining wealth.

Proving marital asset dissipation

To establish marital asset dissipation, it is important to provide evidence of the wasteful conduct. Documentation of expenses, bank statements and financial records can be valuable in demonstrating that one spouse engaged in reckless spending or concealed assets.

Texas has a 7.6 per 1,000 people divorce rate, which is higher than the national average. For people with significant assets who find dissolving a marriage is the best solution, addressing marital asset dissipation protects your financial interests and helps uphold the principles of fairness and equity.