Marriage is meant to be a partnership built on trust and mutual support. Unfortunately, there are instances where this trust is shattered, and one spouse may attempt to dissipate assets during a divorce or separation.
Dissipation of assets refers to the intentional wasting or misuse of marital property to prevent the other spouse from receiving their fair share during the division of assets. You will find signs that your spouse may be engaging in this activity here.
Unusual spending habits
One of the most common red flags is a sudden change in your spouse’s spending habits. They may start making extravagant purchases, going on expensive vacations or even gambling excessively. These actions are often intended to deplete marital funds or create debts that will be burdensome during the divorce settlement. You must document any unusual financial activities to present them in court.
Concealing financial information
Another indication of dissipating assets is when your spouse begins hiding or concealing financial information. They might open secret bank accounts, divert funds to offshore entities or undervalue assets. This behavior is aimed at reducing the overall value of the marital estate and minimizing the amount that will be subject to division. Keep a close eye on financial statements, tax returns and other relevant documents to uncover discrepancies.
Gathering evidence
To protect your rights, it’s crucial to gather evidence of dissipation. Maintain a comprehensive record of all financial transactions, including bank statements, credit card bills and investment account statements. Seek the assistance of financial experts who can analyze the documents and identify any irregularities. This evidence will be invaluable in court proceedings to ensure a fair distribution of assets.
Dissipating assets during a divorce or separation is a serious concern that can have long-lasting financial consequences. Remember, it’s essential to prioritize your well-being and seek support as you navigate this difficult process.