Dissipation of Assets: Wasteful Spending in an Illinois Divorce

 Posted on November 17, 2022 in Divorce / Family Law

If you are getting divorced, statistics show that financial problems likely played a role. Money problems are one of the most common reasons why marriages end, and they can be a massive source of stress during the divorce process.

To make matters worse, some spouses will try to spend as much money as possible before the divorce is final in an attempt to prevent their ex from getting a fair share. Other spouses spend money on a new boyfriend or girlfriend or on expensive gifts for themselves. This is known as dissipation of assets, and it can have a major impact on the division of property in a divorce.

What is Dissipation of Assets?

The word dissipation means to waste or to use up. In the context of divorce, dissipation of assets occurs when one spouse uses marital property for his or her own benefit and not for the benefit of the marriage. This can include spending money on a new relationship, buying expensive gifts, or going on lavish vacations. Dissipation is a common issue in divorce cases involving infidelity. For example, if a spouse bought an affair partner an expensive diamond necklace, this may be considered dissipation.

Dissipation may also involve:

• Gambling

• Excessive spending

• Drug or alcohol abuse

• Intentional destruction of property

• Allowing property to fall into disrepair

• Failing to pay bills leading to penalties, foreclosure, or other adverse financial consequences

Dissipation can be difficult to prove, and it can be a major issue in high-asset divorces. If you believe your spouse has dissipated assets, you should speak to an experienced divorce attorney who can help you gather evidence and protect your interests.

Legal Remedies in a Dissipation Claim

If a spouse is found to have dissipated assets, he or she may be forced to reimburse the wronged spouse for his or her losses. In many cases, a court will order the spouse who dissipated assets to reimburse the other spouse for half of the money that was spent. For example, if one spouse blew through $10,000 on gambling and vacations during the divorce process, he or she may be ordered to pay $5,000 to the other spouse.

Contact a Geneva Divorce Lawyer

At Loire Krajniak Law, LLC, we understand the impact that asset dissipation can have on a divorce. We will work tirelessly to protect your interests during divorce. To schedule a free consultation with our experienced Kane County divorce lawyer, call us today at 630-448-2406.

Source:

https://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm