How Can the Dissipation of Assets Be Identified in an Illinois Divorce?

 Posted on April 15,2020 in Illinois Divorce

Divorce can happen after three years or 30 years of marriage. Every relationship is unique, and there are many factors that cause the breakdown of a relationship. Some of these may include adultery, addiction, financial problems, and even mental health issues. In some cases, a spouse may be blindsided by the news that his or her partner wants to end the marriage. Divorce under the best of circumstances can be challenging, so for those individuals who are not prepared, it can be overwhelming

There are many issues that need to be resolved, including how all the couple’s possessions will be divided. Unfortunately, this can be a contentious process, especially when one party is not being truthful. The dissipation of assets occurs when one spouse intentionally squanders or destroys marital property to prevent the other spouse from getting his or her fair share of the marital estate.

Examples of How Assets Are Dissipated

In order for a court to find someone guilty of dissipation, the spending must be wasteful, excessive, and without the other spouse’s knowledge or approval. It is also important to note that this means it is only benefitting one spouse while the marriage is going through an irreconcilable breakdown. Dissipating marital assets or property can take different forms. Here are a few examples of the most common actions that constitute such behavior: 

• Gambling away savings
• Purchasing illegal drugs  
• Using marital funds to maintain an extramarital affair
• Making a large expenditure prior to filing for divorce
• Giving relatives or friends large sums of money
• Selling assets for less than they are worth 
• Hiding property or bank accounts

Ways That Dissipation Can Be Revealed

Dissipation of assets can be difficult to prove. For instance, if one spouse spent a lot of money on expensive clothes or cars during the marriage, and the other spouse condoned it, that type of spending would not suddenly be considered deceptive during the divorce proceedings

A forensic accountant can help find hidden assets and identify assets that may have been dissipated. This type of financial professional will perform a thorough examination of a couple’s financial records, noting anything that seems unusual, unidentified, inappropriate, or too frivolous for its intended purpose. For example, multiple credit card purchases at a liquor store, florist, hotel, or casino could be evidence of dissipated assets. In some cases, a person who suspects his or her spouse of dissipating or hiding assets can file for a temporary financial restraining order to freeze any joint bank accounts or credit cards. This will prohibit the other spouse from accessing them to withdraw funds or make purchases, as well as from selling any property that is jointly owned

Contact a St. Charles Divorce Lawyer

Going through a divorce can be one of the most difficult events in your lifetime. To make matters worse, your spouse may be trying to hide or dissipate assets from you in order to come out ahead. The competent and efficient Kane County asset division attorneys at Weiler & Associates, Inc. will help you uncover this deception. We will do everything in our power to protect your rights and make sure you receive your fair share of the marital estate. To schedule a confidential consultation, call us today at 630-331-9110.

Sources:

http://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=2086&ChapterID=59

http://www.forbes.com/sites/jefflanders/2014/09/04/why-a-forensic-accountant-belongs-on-your-divorce-team