Asset Dissipation and Divorce Disputes in DuPage County

 Posted on October 05, 2022 in Divorce

When a marriage is irretrievably broken, a spouse may commit the act of dissipation of assets by purposely squandering marital money or destroying marital property out of malice or spite. During a divorce, a spouse may recover all or some of these assets through a dissipation of assets claim. Each party’s lawyer typically inspects any expenditure that could be deemed wasteful. A common form of dissipation of assets includes willfully paying for unnecessary shopping sprees with marital money. A divorce attorney proficient in dissipation of assets and the equitable division of property can strategize and advocate for a party’s claim, or alternately, strategize and advocate for the defense of the accused.

Common Types of Asset Dissipation

Dissipation can take many forms. Spouses may intentionally destroy assets out of spite or negligently spend marital funds because of an addiction or other psychological disorder. Examples of dissipation include:

• The offending spouse racks up credit card debt by partaking in shopping sprees.

• The culpable spouse buys expensive jewelry, clothing, and gifts for a paramour.

• The guilty party may book extravagant hotel suites with a paramour.

• A spouse travels to luxurious destinations with a paramour.

• The offending spouse pays for the living expenses of the paramour.

• A spouse accumulates massive debt through gambling.

• An offending spouse could neglect to pay the family mortgage, which then causes the home to foreclose.

• A spouse deliberately causes a family business to go bankrup.

• A spouse destroys family heirlooms such as photographs, antique furniture, paintings, or jewelry.

• A spouse refuses to pay taxes, credit card, and medical bills, which then incur interest and late fees.

• A spouse forfeits car payments so that the car is repossessed.

• The violating spouse drains the joint checking or savings account to fund an alcohol or drug addiction.

• A spouse donates substantial money to a religious organization or charity despite their divorcing spouse's protests.

Illinois Law Regarding Dissipation of Assets

To claim a spouse committed asset dissipation, a written notice needs to be filed within 60 days of the divorce trial or 30 days after the discovery concludes. Along with a list of the assets dissipated, the notice needs to include the date of the dissipation and the date when the marriage disintegrated. If the dissipation of assets is proven, a judge will either award the petitioner money or more marital property in the divorce decree to compensate for the loss. Two factors addressed in a claim of asset dissipation include the following.

• Willfulness – Is there proof of the offending spouse's intention to squander or destroy marital assets? If the petitioner can prove the offending spouse's misconduct was willful or wasteful, the court will likely find dissipation of assets and penalize the offending spouse.

• Acquiescence – Did the petitioner consent to the violating spouse's asset dissipation? If the petitioner was aware of the asset dissipation and did not attempt to prevent it, an award by the court is unlikely.

Contact a DuPage County Divorce Attorney

At Pesce Law Group, P.C., our concerned and trustworthy divorce attorneys understand the complexities of a spouse's dissipation of assets. We can scrutinize a spouse's spending patterns, investigate if there was knowledge of expenditure, and strategize for a just solution. Along with our team of professionals, we are always sensitive to the client's needs and aim to minimize family discord while advocating for peaceful resolutions. If you suspect your divorcing spouse is committing asset dissipation, or if you are accused of this act, contact a Naperville divorce attorney at 630-352-2240 for a free consultation.

Sources:

https://news.yahoo.com/sylvester-stallone-denied-hiding-marital-204005721.html

https://www.forbes.com/sites/jefflanders/2016/11/01/what-is-dissipation-of-assets-in-divorce-and-what-if-anything-can-you-do-about-it/?sh=2b3999f83ec0

https://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm