As you navigate the complex and often stressful process of divorce, it’s essential to be aware of the potential risks to your marital assets.
One critical concern is the dissipation of assets, where one spouse intentionally spends or squanders shared property to reduce its value for equitable distribution. Dissipation of assets can take many forms, including:
- Extravagant spending on non-essential items
- Secretive financial transactions
- Large “gifts” to friends or family
Other red flags may include significant cash withdrawals, expensive vacations or hobbies, and unexplained transactions on credit card or bank statements. At Beroes Law Center in Pittsburgh, PA, our experienced divorce attorneys are here to guide you through this challenging time and help you protect your rights.
To understand dissipation of assets, it’s crucial to recognize that it’s not just about one spouse being reckless with finances. It’s a deliberate attempt to reduce the value of marital property, which can impact the outcome of the divorce settlement.
Examples of dissipation of assets include spending marital funds on extramarital relationships, using joint accounts to pay for personal expenses, or selling marital property without the other spouse’s knowledge or consent.
Preventing the Dissipation of Assets: Taking Proactive Steps
If you’re facing a divorce, it’s crucial to take proactive steps to prevent the dissipation of assets. Here are some measures you can take to protect your marital property:
- Separate your finances: Consider separating your joint bank accounts and credit cards to prevent unauthorized transactions.
- Monitor your accounts: Keep a close eye on your bank and credit card statements to detect any suspicious activity.
- Inventory your assets: Make a detailed list of your marital assets, including property, investments, and other valuables.
- Seek a court order: If you suspect your spouse is dissipating assets, consider seeking a court order to freeze joint accounts or prevent the sale of marital property.
- Consult a forensic accountant: A forensic accountant can help you track down hidden assets and detect any fraudulent transactions.
By taking these proactive steps, you can help prevent the dissipation of assets and ensure a fair distribution of marital property.
What Should I Do if My Spouse is Dissipating Assets?
If you suspect your spouse is dissipating marital assets, it’s crucial to act quickly to prevent further damage.
To make a claim of dissipation of assets, you must prove that the property was intentionally spent to reduce the funds available for equitable distribution. This can be a complex process, requiring a detailed examination of financial records and potentially involving forensic accounting expertise.
It’s essential to note that not all spending is considered dissipation of assets. For example, using assets to maintain the lifestyle established during the marriage or paying marital debt is not typically considered dissipation.
However, if you can demonstrate that your spouse has engaged in frivolous or suspicious spending, the court may consider these assets as still existing and value them accordingly when dividing marital property.
If you’re facing a divorce and suspect that your spouse is dissipating marital assets, don’t hesitate to seek help. Our experienced divorce attorneys at Beroes Law Center in Pittsburgh, PA, are dedicated to protecting your rights and ensuring a fair distribution of marital property.
Contact us today to schedule a consultation and learn more about how we can support you. Remember, your marital assets are at stake – don’t let them be wasted without a fight.