What to Do When a Spouse Wastes Marital Assets Before Divorce

Divorce is tough, even when it’s amicable. When your spouse wastes marital assets before the process even begins, however, it can create upsetting complications. Wasting marital assets is also called “dissipation of marital assets,” and it can have a big impact on your financial settlement.

If you suspect your spouse is intentionally depleting assets through excessive spending, it’s important to act quickly and strategically to protect your finances.

What Is Dissipation of Marital Assets in Divorce?

Dissipation of marital assets occurs when one spouse improperly uses or depletes marital property for their own benefit, especially when a divorce is imminent. For example, extravagant spending, gambling, or transferring assets to a third party without the other spouse’s consent is usually considered wasting marital assets. Michigan courts take these actions seriously. Judges may adjust the division of property to account for marital waste.

Under Michigan law, judges may consider whether a spouse has used marital assets inappropriately when determining how to divide the marital property. This ensures that the innocent spouse is not unfairly disadvantaged.

Signs Your Spouse Is Wasting Marital Assets Before Divorce

How can you tell whether your spouse is purposely wasting marital finances? Not all spending is waste, but there are some common signs:

• Gifts to third parties – Expensive gifts for friends, family, and new romantic partners can indicate waste.
• Hidden or missing funds – Sometimes, spouses hide funds or try to move assets around surreptitiously. Bank accounts or credit cards may show transactions you didn’t authorize.
• New spending habits – If your spouse suddenly starts making large, unexplained purchases or withdrawals, they may be wasting marital property.
• Secretive behavior – Refusing to share financial details often signals trouble. Sudden changes to your financial accounts are also red flags.
• Unnecessary business transactions – If your spouse owns a business, they may use it to hide or manipulate your marital assets.

If you notice any of these signs, be sure to bring evidence to your Michigan divorce attorney.

How Dissipation of Marital Assets Affects Your Divorce Proceedings

If you discover your spouse is wasting marital assets, it can factor into how your property is divided after divorce. Michigan courts aim for a fair and equitable division when dividing marital property—not necessarily an equal one.

When one spouse wastes marital property, the court may award a larger portion of the remaining assets to the other spouse to offset the loss. For example, if your spouse spent $30,000 of your marital funds to buy a car for their new partner, the court may deduct that amount from their share of the marital estate during the divorce process.

Gathering Evidence of Wasteful Dissipation

Proving marital waste requires concrete evidence. If you suspect that your spouse is wasting assets, follow these steps:

• Compile your financial records – Gather bank statements, credit card bills, tax returns, and business records. These can help you and your attorney identify unusual transactions.
• Document any unusual or suspicious behavior – Keep detailed notes on your spouse’s behavior and spending patterns. These patterns may lead to other evidence of waste.
• Hire a forensic accountant – Forensic accountants can help trace hidden assets and where missing funds may have gone.
• Hire a Michigan divorce attorney – Working with a knowledgeable attorney is especially important when you suspect your spouse is wasting assets. Share your findings with your lawyer to build your case.

Contact a Michigan Divorce Lawyer

If you suspect your spouse is engaged in a waste of marital assets before your divorce, an experienced divorce lawyer can help you gather evidence and advocate for a fair settlement.

The attorneys at Alward Fisher have extensive experience handling marital waste claims and complex divorces. Contact us today for a consultation.