Spending Money and Assets Before a Divorce: What To Know

When a couple is going through a divorce, it is not unusual for either spouse to need to withdraw monies from their assets (marital or nonmarital) for personal use. However, there are situations where those withdraws are done intentionally to reduce how much money is available for the other spouse. This practice, often called the intentional dissipation of marital assets, may cause considerable financial disparities and complicate divorce proceedings. In Maryland, such actions are taken seriously and can influence the court’s rulings on the fair distribution of assets. 

If you suspect your spouse is participating in this behavior, consulting with a skilled Maryland divorce attorney will be beneficial. These legal professionals can assist you in documenting and addressing any cases of asset dissipation and help ensure your rights and interests are safeguarded throughout the divorce process.

Intentional Dissipation of Assets: What Does It Mean?

Intentional dissipation of assets happens when a spouse purposefully squanders, spends, or sells marital property to lower the total value of assets available to the other spouse in a divorce. This action can significantly affect how assets are divided and ultimately influence the divorce’s outcome. Dissipated assets refer to items or properties that were once part of the marriage but were either unavailable or had lost value by the time the divorce ended. This encompasses cash, investments, and other valuable belongings.

Examples of Intentional Dissipation of Assets

Family law courts take intentional dissipation into account when determining asset division during a divorce, the court treats any dissipated assets as though they remain and assigns an equivalent value to them, just like other marital assets. This approach prevents one spouse from receiving an unfair benefit from reducing the marital estate. Specific examples of asset dissipation include:

• Extravagant Spending: When a spouse uses marital funds to go on expensive trips or buy high-end luxury items that do not serve to preserve the family’s financial stability. 
• Gifts to Others: When a spouse gives significant gifts to friends or family members and removes those assets from the marital estate without the other spouse’s knowledge or consent. 
• Unnecessary Sales: When a spouse sells marital property, such as vehicles or collectibles, at undervalue to reduce the pool of assets available for division. 
• Failure to Maintain Investments: When a spouse lets investments sit idle without adequate supervision, resulting in lost opportunities and diminished value. 

How Do Courts Determine If There Was an Intentional Dissipation of Assets?

To submit a claim regarding the intentional dissipation of assets in Maryland, it is important to collect and present clear evidence showing that your spouse deliberately misused marital funds on purchases or expenses not related to the marriage. This includes demonstrating that the money was spent on items or investments that do not enhance the marital estate or support the financial well-being of both partners. This evidence could include financial documents, bank statements, receipts, or testimonies that illustrate the nature of the spending and its impact on the overall asset pool. 

The Impact of Intentional Dissipation of Assets in Maryland

In Maryland’s family courts, both spouses involved in a divorce must provide detailed financial disclosures in their filings. This process is crucial for the fair division of marital assets. If the judge uncovers evidence that one party intentionally dissipated or concealed assets or engaged in deceitful practices to undermine the other party by mishandling marital funds, that individual could face significant repercussions, including receiving a smaller portion of the marital property in the divorce settlement. 

Contact Rice Law To Learn More About the Divorce Process

If you are going through a divorce and are concerned about your finances and assets, do not hesitate to get the answers you need. Contact Rice Law today to address your concerns with an experienced Maryland divorce attorney.