Dissipation of assets is a term used to describe the use or transfer of marital assets for an improper purpose, such as to a third party, or the sole benefit of one spouse, during the period between the separation and the finalization of a divorce. This can have a significant impact on the distribution of assets in a divorce settlement and can be considered a factor in determining alimony and property division in Indiana.
Funding an extravagant lifestyle
One common example of dissipation of assets is when one spouse uses marital funds to support a romantic partner or to fund a lavish lifestyle. This can include using funds to purchase gifts, pay for vacations, or to support a new partner’s lifestyle.
Transferring assets to third party
Another example of dissipation of assets is when one spouse transfers assets to a third party, such as a family member or friend, to keep them out of the reach of the other spouse. This can include transferring assets such as real estate, stocks, or bank accounts, to a third party without the knowledge or consent of the other spouse.
Payment of divorce-related expenses
Dissipation of assets can also occur when one spouse uses marital assets to pay for legal fees or other expenses associated with the divorce. This can include using marital funds to pay for an attorney or to hire a private investigator.
Consequences of asset dissipation
Both spouses need to be aware of the prospect of asset dissipation, as it can have a significant impact on the distribution of assets in a divorce settlement. If one spouse is found to have dissipated assets, the court may award a larger share of the remaining assets to the other spouse or may award alimony to compensate for the loss of assets.
Proving dissipation of assets
To prove dissipation of assets, the other spouse will have to demonstrate that the assets were dissipated with the intent to deprive the other spouse of those assets and that it happened during the period of separation until the finalization of the divorce.
Protecting your rights
Dissipation of assets can have a significant impact on the distribution of assets in a divorce settlement. It’s crucial for both spouses to be aware of this issue and to take steps to protect their assets during the divorce process. If one spouse is found to have dissipated assets, the court may consider this when determining the distribution of assets and alimony.