Defending Yourself Against Claims of Dissipating Assets in Illinois

 Posted on September 30,2024 in Divorce

When a couple is in the process of getting a divorce, they can easily get caught up in the tension and feel the need to treat each other as enemies. Spouses in a contentious divorce sometimes view the entire process as a win-or-lose situation, wanting as many assets and as much time with their child as possible, and anything their future ex gets is considered a loss.

In such situations, one spouse might accuse the other of dissipating assets, which means they are diminishing the value of the marital estate so there is less to divide in divorce. Since Illinois courts want to discourage this from happening and punish it when there is proof, accusations can have significant consequences for the divorce settlement. If you are in the midst of divorce proceedings and accused of dissipating assets, speak with a knowledgeable Naperville, IL divorce lawyer to understand what it means and how to protect yourself as you negotiate your settlement. 

What Does Dissipation of Assets Mean?

If you are accused of dissipating assets, you are suspected of purposefully ruining the value of your marital estate. This can be through negligence that devalues property, wasteful spending, or intentional destruction. 

While people are generally free to act however they see fit with their assets, the value of a marital estate is critical to both spouses when they decide to get a divorce. Illinois follows an equitable distribution model, meaning all of a couple’s assets attained during the marriage are supposed to be divided fairly among both in a divorce. If one spouse uses and wastes their assets before a divorce is finalized, the other spouse is deprived of their fair share.

How Does a Dissipation of Assets Claim Work?

Your spouse can file a notice of intent to claim dissipation, which includes the assets you are accused of wasting or ruining, the period when your marriage broke down, and the period when you allegedly dissipated assets.

If you are found guilty of dissipating assets, there are several possible consequences:

• You might be required to reimburse the marital estate before the division of assets

• Your spouse might be awarded a disproportionately larger amount, in compensation for the alleged loss

• You might be required to pay extra spousal support

How to Defend Yourself Against Dissipation Accusations

The two primary defenses used against accusations that a spouse has dissipated marital assets are:

• The timing: Claims for something that happened more than five years before a spouse filed for divorce are invalid. Additionally, it is only considered dissipation of assets if your alleged spending happened once the marriage had already broken down. It can be difficult to prove that your marriage was still healthy at the time you are accused of devaluing the property, but an experienced lawyer can help you navigate this.

• The reason for the spending: If you can demonstrate that what you spent was related to your marriage, you might be able to convince the court that this was done in good faith. Receipts that can show what the money was spent on can be useful here, because if you were making purchases that benefited both spouses, it can help your claim.

Schedule a Free Consultation with a DuPage County, IL Divorce Attorney

If your spouse accuses you of dissipating marital assets, contact a qualified Naperville, IL divorce lawyer for guidance. These accusations can have a serious impact on your divorce settlement, but at Pesce Law Group, P.C., we are dedicated to protecting your rights and interests and getting you the best possible outcome. Call us at 630-352-2240 to schedule a free consultation.