What is Asset Dissipation in Illinois Divorce Cases?

 Posted on October 11,2024 in Divorce

Asset dissipation is a significant concept in divorce proceedings, particularly in Illinois. It refers to the intentional spending or waste of marital assets by one spouse during the divorce process.  Recognizing and addressing asset dissipation can play an important role in ensuring a fair division of property.

At The Stogsdill Law Firm, P.C., we understand that many people approaching a divorce are seriously concerned about how the process may affect their finances. These fears can be dramatically worsened when asset dissipation is thought to be taking place. Our team of skilled lawyers has decades of experience identifying asset dissipation, stopping it, and making sure the spouse who acted unethically is held accountable.

What Constitutes Asset Dissipation?

Asset dissipation occurs when one spouse intentionally depletes marital assets in a way deemed unjust or wrongful. The goal of the dissipating spouse is often to reduce the amount of property available for equitable or fair distribution during the divorce. Common actions that may be classified as asset dissipation include:

• Excessive spending – This involves paying for luxury items or extravagant vacations without the knowledge or consent of the other spouse.

• Hidden assets – This involves concealing marital property or financial accounts in anticipation of the divorce.

• Gambling losses – This involves using significant marital funds for gambling or other high-risk activities.

Legal Perspective on Dissipation

In Illinois, the law provides a framework for addressing asset dissipation. Here is how it works:

• The burden of proof – The spouse who is accused of dissipating assets must prove that whatever funds he or she spent were, in fact, for marital purposes.

• Timeframe – The dissipation must occur during the irreconcilable breakdown of the marriage.

• Marital vs. Non-Marital Assets – Only marital assets, or those acquired during the marriage, can be subjected to dissipation claims.

What Are Examples of Asset Dissipation?

Here are practical examples of asset dissipation:

• Example 1 – One spouse sells a marital vehicle at a low price to a friend right before filing for divorce, pocketing the cash without disclosing the sale.

• Example 2 – A spouse takes significant funds from a joint savings account to pay for a romantic getaway with a new partner, which could be viewed as dissipation.

• Example 3 – He or she is spending large sums of money on alcohol or drugs during the course of the marriage, particularly after the marriage shows signs of breaking down.

How to Protect Your Interests

If you suspect asset dissipation in your divorce case, there are several steps you can take to protect your financial interests:

• Carefully document everything – Keep highly detailed records of joint finances, transactions, and communications with your spouse.

• Hire a lawyer – Even in divorce cases not involving asset dissipation, hiring a lawyer is imperative. This is even more true in cases where one spouse is dissipating assets.

• Act quickly – Timeliness is important in uncovering and addressing dissipation issues, so take action as soon as you suspect wrongdoing.

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

The Wheaton, IL divorce lawyers with The Stogsdill Law Firm, P.C. are amongst the most high-quality legal professionals in all of Illinois. To schedule a private consultation with one of our top-notch attorneys, contact 630-462-9500 today.