One of the most important aspects of the end of a marriage is the division of marital wealth. The outcome of property division will have a lasting impact on the financial stability of both parties as they move forward into single life. Unfortunately, not every Texas spouse is willing to behave in an ethical manner when it comes to property division and divorce. Some will take active steps to reduce the amount of available wealth.
This is known as dissipation of assets, and it is a serious matter within many divorce proceedings. In some cases, a spouse who has been conducting an affair will deplete marital wealth by spending excessive amounts on his or her romantic partner. In other instances, dissipation of assets takes the form of excessive spending patterns leading up to the divorce.
For spouses who wish to take the matter to court, it is important to have proof of how money was spent in the time frame leading up to divorce. Unfortunately, if one’s partner has a long-standing history of excessive spending, proving dissipation of assets can be an uphill battle. However, if spending was obviously ramped up prior to divorce, the wronged spouse may be able to make a solid case.
For those in Texas who are uncertain of the full extent of dissipation of assets, it may be wise to hire the services of a forensic accountant. These financial professionals are highly skilled at going over a couple’s finances and looking for areas with discrepancies. Having evidence to back up claims of dissipation of assets is critical to reaching a favorable outcome in divorce court.
Source: Forbes, “What Is Dissipation Of Assets In Divorce And What, If Anything, Can You Do About It?“, Jeff Landers, Nov. 1, 2016