In a high-asset divorce, it’s very common for one spouse to allege that the other is trying to hide assets.
For instance, maybe you just noticed that your spouse gave a large amount of money to a family member. Your spouse claims it’s for an old debt that they needed to repay, but you suspect they’re just trying to transfer assets out of their name—and that their family member will give the money back after the divorce, thereby depriving you of the portion you should’ve received.
It is important to consider if your spouse is hiding assets, but you also need to be aware of the potential to dissipate marital assets. This is common in high-asset divorce cases where one spouse is an extremely high earner and the other is not.
Spending jointly owned funds
Essentially, dissipation of marital assets just means spending those assets in a way that is outside of the norm. Divorce can take months, so some spending is naturally going to happen. But if there’s a dramatic increase in spending, that could raise red flags. This is especially true if your spouse is buying things that don’t have any residual financial value and can’t be divided during a divorce—such as paying for travel expenses, hotel stays, meals or entertainment.
If your spouse was involved in an extramarital affair, then there’s also the potential for dissipation of assets. Did they use marital funds to pay for hotel stays or travel to meet their affair partner? Did they buy them gifts or take other steps, like paying off their mortgage or car loan? If so, you may be able to argue that you deserve a portion of the assets that were spent on the affair.
High-asset divorce cases can become very financially complex, so it’s imperative that you understand exactly what legal steps to take.