If you are planning on getting a divorce, you want to ensure your assets are protected and that your financial future is secure. That financial security may be put at risk when one party starts to waste or destroy property during the breakdown of the marriage. When this happens during the breakdown of a marriage, it can be classified as dissipation of marital assets. If you have started the divorce process and believe your partner is grossly misusing funds or property you may have a dissipation claim. At Citino Family Law, we can assess the situation and help you determine your legal options. Contact us today at (312) 248–3849.
What is dissipation?
Dissipation is the use of marital property for the sole benefit of one partner for a purpose unrelated to the marriage. It can only occur when the marriage is at the point of an irretrievable breakdown. In simple terms, an irretrievable breakdown is when there is no chance for reconciliation.
Some common examples of dissipation include:
- Spending on a new vehicle, house, and furnishing
- Purchasing luxury items like a boat, jewelry, additional car at a level inconsistent with historical spending
- Disposing of assets for less than fair market value
- Buying gifts, paying for vacation, or renting hotel rooms for a paramour
- Gambling
- Causing the family business to fail (through careless or intentional actions)
- Failing to pay a mortgage, so a home is lost to foreclosure
- Drug use
- Transferring funds to a friend or family member without a clear purpose
What’s the penalty for dissipation?
If you believe your spouse has dissipated assets, you need to file a claim no later than 60 days before your trial or 30 days after the close of the discovery process (whichever is later). You will need to provide any information and documentation about what was dissipated and when it took place. This is where it is important to work closely with your attorney and to make sure that you can provide as much detail as possible related to your dissipation claim. If you are not sure if your spouse dissipated marital funds, we can work with you, sometimes with the help of an accountant\ when necessary, to carefully analyze transactions for possible dissipation.
Illinois is an equitable distribution state, which means each spouse will receive a fair portion of the assets. If the court finds that a spouse dissipated assets, the usual remedy is to distribute the remaining marital property in a way that compensates the wronged spouse for his or her losses.
The spouse that has been charged with dissipating the martial estate has the burden to prove how funds alleged to have been dissipated were spent. They must provide “clear and convincing evidence” and general statements that funds were spent on bills are inadequate.
Citino Family Law LLC will help with your dissipation claim
It’s important to understand the laws surrounding dissipation of marital assets during divorce. If your spouse is trying to dissipate your marital assets, you should consult with an attorney before continuing with the divorce process so they can advise you on how best to proceed. You need to protect yourself, your family, and your financial future and Citino Family Law is here to help. Contact us today for a consultation.
