Dissipation Of Assets

In divorce law, the dissipation of assets can be defined as any form of spending money in an excessive, reckless, fraudulent, or wanton manner, including transferring money to others to prevent the other spouse from obtaining the funds in a divorce judgment. Claims of dissipation of assets often include claims that one spouse began moving assets well before an actual divorce filing was made. Additionally, some spouses will continue to move assets around against a divorce automatic restraining order, which will lead the courts to issue an immediate injunction against use of any named assets.

Fast Facts

  • Dissipation of assets claims often require some burden of proof by the plaintiff, and if the defendant cannot prove the spending was justified or in line with marital duties, dissipation of assets penalties may be assessed.
  • In more complex cases of dissipation of assets, complex federal cases of money laundering, wire fraud, and other illegal actions may be involved.

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