What is Dissipation of Property?

Dissipation of property during a marriage can be adissipation. Dissipation can also consist of failing to
hotly contested issue in a divorce action. Often, onemaintain property. A spouse's failure to make
party feels that a portion of his or her property hasmortgage payments and prevent foreclosure in a
been exhausted for no good reason. Dissipationfamily home, which results in loss of equity therein,
arises when property is improperly used for the solecan constitute dissipation. Failing to pay income tax
benefit of one spouse, for a purpose unrelated toliability, resulting in interest and penalties, constitutes
the marriage, at a time when the marriage isdissipation.
undergoing an irreconcilable breakdown. Once a primaDissipation should be confined to the situation where
facie case of dissipation is made, the party chargedvalue is lost to the marital or non-marital estate
with dissipation must establish by clear and convincingresulting in the sole benefit to one spouse for a
evidence how the funds were spent. Once it ispurpose unrelated to the marriage during marriage
established that one party has liquidated maritalbreakdown. The timing of the alleged dissipation is an
assets, the party charged with dissipation mustimportant consideration. Determining the instant when
establish by clear and specific evidence how thethe marriage becomes irrevocably broken down can
funds were spent.be difficult. The court may charge a spouse who
What specific acts constitute dissipation? Generally,dissipated assets the amount dissipated against his or
expenditures held to constitute dissipation areher share of marital property in order to compensate
extraordinary expenses that clearly do not furtherthe other party, but an award of cash or property
common marital interests. For example, gamblingequal to half of the amount dissipated is not
losses are patently dissipation. The payment of legalmandated.
fees from marital assets has been consideredIt is always best for parties to maintain the status
dissipation. However, less than extraordinaryquo as to spending and selling while dissolving their
expenses have been found to constitute dissipation.marriage. If this is done, neither party will be able to
For instance, living expenses of one party after themake a claim for dissipation. Further, the overall
marriage's irreconcilable breakdown were held in onesettlement resolution process will be easier to
case to constitute dissipation. "The expenditure oftraverse. When one party believes that he or she is
marital funds by one spouse for necessary,being taken advantage of, the divorce process often
appropriate and legitimate living expenses at a timestalls. It is wise to consult with an experienced
the marriage is undergoing an irreconcilabledivorce or family law attorney prior to excessive
breakdown will not be considered to be dissipation.spending or unnecessary liquidation of marital
Dissipation is not limited to financial issues. Wife'sproperty.
destruction of family photographs constituted