Dividing the assets you acquired as a couple (marital assets) is among the most contentious aspects of a divorce. A lot can go wrong, especially if you cannot agree on how to divide your property fairly. One of the most troubling issues is when one spouse dissipated marital assets in the lead-up to or during divorce.
Marital assets dissipation occurs when one spouse intentionally wastes or misuses marital assets, making them unavailable for division. This may include spending money on frivolous expenses, gambling or giving away assets to friends or family members.
Your spouse may do this to reduce the amount of marital assets available for division, punish you or simply out of spite or anger. Whatever their reasons, you should take the necessary action to protect your interests. Otherwise, your hard-earned money may go down the drain, which can leave you in a financial rut post-divorce.
The steps to take
The first thing you should do is gather relevant evidence, as you may need to prove your claims of asset dissipation. Keep track of any unusual or suspicious financial transactions and document everything, from bank and credit card statements to receipts.
Sometimes, it may be necessary to seek the court’s intervention to stop the dissipation. You may, for example, file an injunction to prevent further misuse of the marital assets before the divorce is finalized.
Remember, North Carolina is an equitable division state. Therefore, the judge will factor in your spouse’s dissipation of marital assets when dividing them to achieve fairness. You may get a larger share of the remaining marital assets.
Do not delay taking action
It’s important to swiftly address the issue of dissipated assets early on in the divorce process – as soon as you notice any red flags. It could make all the difference in recovering your rightful share of the marital estate.
Having proper legal guidance from the get-go can help you do everything right, represent your interests and ensure you do not lose out during the property division process.
