Dissipation and its Effect on Divorce
DISSIPATION & DIVORCE – Kentucky, like most other states, uses a no-fault divorce system. Actions of one spouse, such as adultery or substance abuse, are not typically used as a way to blame them and allow the other spouse to gain more marital property.
Under Kentucky law, the fault of the parties is not to be considered in dividing marital property. Under Ky. Rev. Stat. Ann. § 403.190, property is assigned without regard to marital misconduct. However, there is one exception — the dissipation of assets. Dissipation of assets refers to wasteful spending. This occurs when a spouse wastes, squanders, hides, or gifts money or property that is considered a marital asset.
Dissipation often occurs during or right before the filing of a divorce. It is an issue because if one spouse spends or gifts marital property, it will not be included when dividing the marital estate. This means that the total value of the marital estate will be smaller than anticipated, leaving the innocent spouse with less than their fair share.
A party may not spend marital assets or funds for non-marital purposes and then expect to receive an equal share from the diminished marital estate. The “fault” is not considered blame for the dissolution of the marriage. Rather, the court will deem the wrongfully dissipated assets to have been received by the offending party prior to the distribution
The court may find dissipation when marital property is expended (1) during a period when there is a separation or dissolution impending; and (2) where there is a clear showing of intent to deprive one’s spouse of her proportionate share of the marital property.
Examples of Dissipation of Assets
In order for something to be considered dissipation, the waste must be excessive and not be approved by the other spouse. Some examples of dissipation include:
- Spending money on an affair partner, such as hotels, dinners, and vacations.
- Going on a spending spree and wiping out the bank account or maxing out credit cards.
- Giving large quantities of money to family members or other third parties without the other spouse’s approval.
- Taking out a loan without the other spouse’s consent.
- Spending money on a gambling habit or alcohol or drug addiction.
- Purposely destroying marital or business property.
- Selling marital property for less than what it is worth.
What Can You Do?
If you can show that your spouse intentionally wasted or misused marital assets to damage your marital relationship or influence the divorce, the judge might factor that information into the property division or debt division aspect. You will need to prove your claims, though, and this means using financial records, such as bank statements and credit card statements, to validate your claims. Carefully review your financial records and let your lawyer know of possible spousal misconduct.
Contact Us Today
Dissipation of assets happens often in an impending divorce. If you suspect this, it is best to let your lawyer know so that you can get the assets you deserve.
The Kentucky divorce lawyers at Velez Law, PLLC can help ensure you get what you deserve following a divorce. We know the laws that apply. Fill out the online form or click below link to schedule a consultation.
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