Dealing with The Issue of Dissipation (Excessive Spending of Marital Assets Claims) In Divorce
Dealing with The Issue of Dissipation (Excessive Spending of Marital Assets Claims) In Divorce Jul 24, 2020 For some divorces, spending habits can become a serious issue; specifically, the issue of dissipation, which involves purposely spending extra marital funds while the marriage is going through a breakdown for one’s own benefit. There is no question that, in considering the division of marital assets and equitable distribution in states like Florida, intentional dissipation is one of the factors that the court will take into account as justification for unequal distribution. Once a divorce petition is filed, the administrative order prohibits both spouses from dissipating marital assets, therefore, issues involving dissipation typically arise when a couple knows that the divorce is imminent but before the petition is actually filed. For example, one spouse might transfer funds out of the marital estate or spend the funds on someone else in the form of hotel expenditures, gifts, questionable loans, etc. Below, we discuss how dissipation works in Florida and how to protect yourself against it: What Technically Qualifies as Dissipation? How Is It Brought Up in The Divorce Process? In divorce, addressing dissipation works in the following way: The spouse alleging dissipation demonstrates that it has occurred, and the burden then shifts to the other spouse to try to prove that their excessive spending was for a legitimate purpose. In some cases, the issue comes down to the word “intentional” in Florida’s law—in other words, dissipation is relevant as a justification for unequal distribution if it is intentional and after the filing of the petition or within two years prior to filing because this is how the statute is worded. Claims of dissipations are more convincing if the spending is substantial, frivolous, and unusual because that is more in accordance with “intentional.” The court will also look at how long and when a particular spending habit has occurred because those that occurred long before the divorce petition was filed cannot count due to the way that Florida law defines the timeframe for dissipation. For example, if the spouse has been spending money on a particular activity for 10 years, that does not fit into what the law provides, as the activity in question has to have occurred after the filing of the petition or within two years prior to the filing of the petition. This is why it is important to timely file for divorce in Florida so that you can start the clock on these types of claims in case there is abuse of funds involved in your divorce process. What Happens If Dissipation Has Occurred? If the court does find that one spouse dissipated funds, one way of addressing the issue is to add that amount back into the marital estate as though the funds have not been dissipated. The non-offending party would then typically make an argument for additional unequal distribution and perhaps even attorney’s fees in response to those actions to dissipate taken by the offending spouse. How To Protect Yourself Against Dissipation: Work With The Very Best Florida Divorce Attorneys These issues are extremely important, as there are a number of cases where one spouse has perhaps given up their career to take care of the family and home and thus, upon divorce, it is crucial to make sure that the marital estate is divided fairly so that it is not a loss of livelihood issue for that spouse. If you have concerns about this dissipation, it is crucial that you and your attorney take those actions necessary to detect and prevent it, as a significant amount of damage can occur before the administrative order prohibiting both spouses from dissipating marital assets becomes effective. In addition to ensuring that you file for divorce in a timely fashion so that the clock starts on what spending counts as potential dissipation, there are also several actions you can take to keep an eye out for frivolous spending, such as Keeping a close eye on joint credit card statements (keep in mind that some businesses will use obscure identifiers for charges to keep transactions purposely vague); and Consider consulting with a forensic accountant to look through your financials for anything suspicious. Contact Us Today for Help If you have any questions or concerns about divorce in Florida, contact the experienced Tampa divorce attorneys of HD Law Partners today to find out how we can help. Our family law attorneys serve clients in Sarasota, Tampa, Bradenton, and surrounding areas. Resource: forbes.com/sites/jefflanders/2016/11/01/what-is-dissipation-of-assets-in-divorce-and-what-if-anything-can-you-do-about-it/#417610e63ec0 leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.075.html leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.075.html Needing a Divorce in the Time of the Coronavirus: How to Protect Yourself Posted in Divorce | No Comments » Connect with us Archives May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 July 2025 June 2025 January 2025 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023 March 2023 February 2023 January 2023 December 2022 November 2022 October 2022 September 2022 August 2022 July 2022 May 2022 April 2022 March 2022 November 2021 October 2021 September 2021 August 2021 July 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 November 13 Categories Alimony Appellate Arbitration Auto Accidents Auto Insurance Business Corporate Business Insurance Law Child Custody Child Support Criminal Law Divorce Family Law FEMA Insurance Payments Florida’s Mandatory 2‑Hour Legal Professionalism CLE: Foreclosure Defense Fort Myers Hurricane Insurance Attorney General Guardianship HD Law Partners Service HOA/Property Management Homeowners Association Homeowners Insurance Hurricane Claims Hurricane Insurance Insurance Bad Faith Insurance Claims Insurance Defense Insurance Litigation Landlord Tenant Law Enforcement Liability Loan Modifications Mold Water Damage Parental Rights Paternity Personal Injury Premises Liability Law Prenuptial Agreements Private Security Property Distribution Property Owner Law Sarasota Insurance Litigation Attorney Slip Fall Tampa Business and Corporate Attorneys tampa family attorney Tampa Insurance Attorneys Timeshare Timesharing Uncategorized HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us