Many divorces involve some degree of marital misconduct. Either spouse might engage in behavior that forces the other spouse to file for divorce. People can also act inappropriately during the divorce process.
As a general rule, family law judges do not consider misconduct when handling property division matters in a no-fault divorce. However, certain specific types of behavior can have a bearing on the outcome of property division proceedings.
The dissipation of marital property is one form of misconduct that can affect divorce outcomes. Dissipation can involve gambling, spending money on drugs, intentionally destroying marital property or using marital income to conduct an affair. When does dissipation influence divorce proceedings?
When there is adequate evidence
Claims of wasteful spending aren’t enough to alter how a judge approaches property division proceedings. Those alleging financial misconduct, including dissipation, need black-and-white proof.
Social media posts offering marital property for free or listing items for sale at a tiny fraction of their fair market value can serve as evidence of dissipation in some cases. Financial records, possibly reviewed by a forensic accountant, can also help establish that one spouse engaged in wasteful spending or otherwise dissipated marital property.
When a spouse’s behavior changes
Some people spend more money than others. One spouse might have a penchant for takeout meals or designer clothing. Conduct and spending patterns that are consistent with behavior throughout the marriage typically do not constitute dissipation.
Judges generally only consider claims of dissipation when there is a clear change in financial behavior immediately preceeding the divorce or when one spouse uncovers signs of hidden dissipation, such as secret gambling or funds wasted on an extramarital affair.
Someone who marries a romantic partner with a history of frivolous spending habits usually cannot ask the courts to hold them accountable for all of their shopping during the marriage. Those who can show that a spouse started wasting money immediately before they filed for divorce can sometimes ask the courts to hold the other spouse accountable.
Generally speaking, the greater the amount of marital resources wasted and destroyed, the more likely the courts are to take action. Some spouses can ask the courts to exclude certain debts from the property division process. Other times, they can ask for the judge to factor in the value of dissipated assets when distributing property.
Learning about the rules that apply during property division proceedings and gathering evidence of financial misconduct can help people secure a fair property division outcome.