If you and your spouse have decided to file for divorce, you certainly may be aware that your spouse could try to hide assets. It’s worth looking for any unusual financial behavior, such as transferring a large amount of cash to a family member, who may simply give the money back after the divorce.
But there’s another issue to be aware of, which is similar: the dissipation of marital assets. Rather than hiding those assets and trying to keep them, your spouse simply tries to spend marital assets. Why would they do this and what is their goal?
Reducing the amount that has to be divided
The general goal here is simply to reduce the amount of assets the couple owns, thereby keeping those assets out of property division.
For instance, say that you and your spouse have $100,000. If it was split equally, you would both receive $50,000. But if your spouse spends half of it prior to the divorce, then you may only receive $25,000. By spending in advance, they’re keeping the money from you. They essentially get $75,000 in this hypothetical example.
This is something that often happens if your spouse is a high earner and knows they can make the money back. They know you may be counting on that money after the divorce, especially if you’re not working or need to readjust your career when the marriage ends. But they know that they can relatively quickly earn the money back, so spending it in advance hurts you more than it hurts them.
There are many different financial issues that can come up during a high-conflict divorce. It’s very important to understand what steps to take and what legal options you have.