WHAT TO DO WHEN YOU SUSPECT YOUR SPOUSE IS DISSIPATING ASSETS DURING YOUR DIVORCE

If a #divorce is looming on your immediate horizon (or if one has already been started), many unknowns can cause sleepless nights. And while many couples will go their own ways amicably, for some bitterness, anger and resentment cause one spouse to take a scorched earth approach to the split.

One area that is most impacted? A couple’s finances. And one common way that a spouse play’s dirty is by dissipating assets before a final settlement agreement is reached.

There are many ways a spouse can intentionally deplete marital resources. Spending money on a new significant other is one. Gambling is another. And, in extreme cases, hiding resources in secret accounts happens, too.

For the spouse on the other side of the equation, usually the lower earning partner, dissipation of marital assets can have very adverse long-term consequences. While a higher earning spouse can take the long view and make up the funds after the divorce is final, for the spouse who gave up a career to stay home and care for the children and home, post-divorce financial stability usually relies on his or her portion of the marital resources.

And while many states issue orders that prohibit such actions at the start of divorce proceedings, for a bitter spouse such orders do little to deter the dissipation. They reason that every penny they can squander is one less they’ll have to split with their soon-to-be ex.

If you suspect your spouse of dissipating marital assets, what can you do? First, you must understand two things. The amount must be significant. Discovering your spouse took a new love interest to dinner is quite different than finding out he used your joint credit card to take her to Mexico. The court will think so, too.

Also, the behavior must be a diversion from past actions. If you condoned your spouse’s actions during the marriage (frivolous spending, expensive habits), you won’t get far arguing now that his or her actions are intentional dissipation.

But if both these criteria are met, you may need help in proving the claims. This is where a forensic accountant comes into play. This financial detective can help identify patterns of unusual spending and uncover the details that can prove intentional dissipation, even if your spouse thinks they are being super crafty in their deceit.

Of course, proving dissipation can be difficult and expensive. You must first weigh the pros and cons of the expense of the investigation and proof to the potential benefit to you in the long run. If the numbers make sense, though, it pays to pursue your financial rights during the divorce.

To learn more about how a Divorce Transitional Support Advisor can help you or your client regain financial stability after a divorce, please visit our website.