Dissipation of Marital Assets: What It Is and How It Affects Your Divorce Settlement
Going through a divorce is stressful enough on its own. But what happens when you suspect your spouse has been spending down marital money, draining accounts, or racking up debt, right before or during the divorce process? This is called dissipation of marital assets, and it can have a real impact on how property gets divided in your Florida divorce.
Understanding Dissipation and Why It Matters
Dissipation refers to the intentional waste, depletion, or destruction of marital assets by one spouse, typically done in a way that harms the other spouse’s financial interests. Think of it as one partner undermining the shared financial picture at a time when both parties have a stake in what’s left.
Florida law takes this seriously. Under Florida Statute § 61.075, which governs equitable distribution in divorce proceedings, courts are specifically directed to consider the intentional dissipation, waste, depletion, or destruction of marital assets when deciding how to divide property between spouses. This means that if one spouse deliberately burns through marital funds, a judge has the authority to factor that conduct into the final settlement, and it can shift the distribution in the other spouse’s favor.
What Counts as Dissipation?
Not every spending decision qualifies. Courts look for intentional conduct that wastes marital assets, usually for the benefit of one spouse at the expense of the other. Some examples that commonly come up in Florida divorce cases include:
- Spending significant marital funds on an extramarital affair, such as gifts, travel, or accommodations
- Gambling away joint money or liquidating investments without the other spouse’s knowledge
- Transferring assets to family members or friends to hide them from the divorce proceeding
- Running up credit card debt on personal luxuries while the divorce is pending
- Deliberately destroying or neglecting valuable marital property
Florida Statute § 61.075 specifically focuses on conduct occurring after the divorce petition is filed or within the two years prior to filing. That said, evidence of intentional waste occurring further back in time is not automatically off the table, it simply becomes harder to prove as time passes and documentation fades.
How Dissipation Can Shift Your Settlement
When a court finds that one spouse dissipated marital assets, the starting point of equal division can change. Florida courts begin with the presumption that marital assets should be split equally, but that presumption gives way when there is a legally sufficient reason to divide things differently. Proven dissipation is one of those reasons. A judge may award the other spouse a larger share of the remaining assets, or treat the dissipated amount as if it were still part of the marital estate and credit it against the offending spouse’s share.
This is why documenting financial activity is so important from the moment a divorce becomes likely. Bank statements, credit card records, tax returns, and account histories can all be critical evidence.
Protect Your Interests. Speak With an Attorney
If you believe your spouse has been wasting or hiding marital assets, or if you are concerned about protecting what you’ve built together, taking action early is key. Gathering financial records, understanding what qualifies as a marital asset, and knowing how Florida law treats these situations are all steps where experienced legal guidance can make a real difference. At Schwartz | White, we are here to help you navigate the complexities of property division and fight for a fair outcome. Contact our Boca Raton divorce attorneys today to schedule a consultation and start protecting your financial future.
Source:
flsenate.gov/Laws/Statutes/2024/61.075
