Asset division is often one of the most challenging elements of divorce negotiations or litigation. Spouses have to gather records about their income and spending during the marriage. They have to discuss how to address their debts and divide their shared property.
It is quite common for spouses to have vastly different opinions about what is fair and reasonable as they try to separate their resources and obligations during divorce. Many people hope to complete the divorce process as quickly as possible with as little conflict as possible. In some cases, one spouse may make unfavorable concessions in their desire to move on as quickly as they can.
Typically, misconduct has minimal impact on litigated property division proceedings. However, proof of certain forms of financial misconduct can influence how a judge divides property. These forms of misconduct may also come into play when spouses try to negotiate a settlement with one another.
What types of financial misconduct may have a bearing on divorce?
Dissipation
The term dissipation refers to the practice of destroying marital assets or wasting marital money. One spouse may have destroyed furniture or clothing after discovering infidelity. They may have intentionally accrued thousands of dollars in debt immediately before filing for divorce.
Even the money spent conducting an affair can constitute dissipation and may influence how the courts divide marital property. Spouses may need to go over financial records carefully to look for evidence of dissipation so they can validate their claims of financial misconduct in court.
Hiding assets
Thorough financial disclosure is a mandatory component of litigated divorce. Attempts to hide assets may involve undervaluing assets, claiming not to be an owner of property or even starting a hidden bank account to divert income.
One spouse trying to hide assets unfairly deprives the other spouse of their appropriate share of the marital estate. If one spouse can prove that the other hid property during the disclosure process, then they may have grounds to ask the courts to factor that into asset division determinations.
Most types of misconduct during a marriage have minimal impact on asset division. However, verifiable financial misconduct can influence what the courts decide to do with marital property. Discussing financial concerns with a skilled legal team can help spouses determine the best way to approach asset distribution and divorce proceedings in general.