People who are going through a high-asset divorce are often worried that their spouse is going to try to hide assets. It may be a contentious divorce, and they are concerned that their spouse will try to keep important assets out of property division by giving them away, creating fake debts, failing to disclose financial accounts and through a variety of other tactics.
All of this can happen, and it is important to be aware of it. But it is also wise to remember that some people will try a different tactic, known as the dissipation of marital assets.
Spending assets down
Dissipating assets essentially means that a person is spending them in a way that only benefits them, wasting those assets frivolously before they get to property division.
For instance, perhaps there is a sudden uptick in a person’s spending in the six months before the divorce is finalized. They start making extravagant purchases, taking additional trips and spending money on things that cannot be refunded or divided, like entertainment, meals, gambling and things of this nature.
Or perhaps the divorce revolves around issues with infidelity. But in the months before the divorce, the spouse begins buying their affair partner extravagant gifts, like vehicles, jewelry, plane tickets and much more.
Either way, their goal is to reduce the amount of assets they have, and this is often done when one spouse is a high earner and knows they can earn the assets back, but it will be more difficult for their spouse.
Your legal options
If you are worried that your spouse will try tactics like this to keep you from getting your fair share during a divorce, it is critical that you know exactly what legal options you have.
