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What is Dissipation of Property?

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




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