Recently, we discussed how to locate cryptocurrency that a spouse might be hiding during divorce. Some people, unfortunately, do try to hide assets of all kinds from their spouses as they divorce to prevent them from getting a fair share of what they’re legally entitled to have.
Another way that some people try to minimize what their spouses take away from the divorce is by “dissipating” or “wasting” marital assets. Not only is that unethical, but it can be legally actionable.
Florida uses the equitable distribution rule for dividing joint or marital property. That means this property is to be divided fairly – which may not necessarily mean splitting it 50-50.
Examples of dissipation of assets
Spouses are expected to preserve their joint assets as much as possible as they divorce. Too often, a spouse will misuse or even destroy marital property in anticipation of divorce or during the divorce process. Some common ways of doing this involve:
- Gifting or transferring marital assets to third parties
- Running up credit card debt on personal luxuries, travel or gifts
- Excessive gambling using joint funds
- Intentionally destroying or neglecting assets to lower their value
Putting a soon-to-be ex’s designer wardrobe in their favorite luxury car and setting the whole thing on fire might look cathartic in the movies, but it can have some serious ramifications in real life.
Someone who believes or knows their spouse is dissipating marital assets should notify the court as soon as possible. Under the law, a judge can issue an order to freeze or limit the use of credit cards and accounts.
What remedies are there?
If a spouse alleges dissipation of assets, a judge will likely need to see financial records and other evidence to show that it is out of the norm. They will look at when the spending or other type of dissipation occurred and ask the other spouse questions about their intent. A judge can consider a spouse’s dissipation of assets in determining or approving the couple’s property distribution agreement.
As noted, when someone believes their spouse is dissipating marital assets, quick action can be crucial to protecting those assets. That’s one reason it’s wise to secure experienced legal guidance as early as possible when it comes to the divorce process.