Dissipation of Marital Assets

Category: legal

The intentional waste, concealment, or frivolous depletion of marital property by one spouse immediately before or during a divorce.

Dissipation occurs when a spouse spends joint funds on non-marital expenses—such as gambling, corporate shell coverups, or funding a secret personal life—with the intent of lowering the pool of assets available for division. If proven by a forensic accountant, the court will typically reduce that spouse’s final asset share to compensate the innocent party.

Common Examples

• The husband’s sudden cash withdrawals at the casino were flagged by our forensic software as a clear dissipation of marital assets.
• Proving a dissipation of marital assets allows the judge to adjust the final equitable distribution matrix to restore the balance of the estate.