Finding out that your spouse’s secret habits or reckless spending drained the marital funds can feel like a betrayal. After all, you have worked hard saving money, only to find out that you cannot use it.
In New York, this is more than a moral issue. Your spouse may have committed wasteful dissipation of marital assets, which carries serious consequences.
Defining wasteful dissipation
Wasteful dissipation refers to the intentional act of depleting, wasting or destroying marital assets for non-marital purposes. Examples can include:
- Funding gifts, travel or living expenses for an extramarital affair
- Squandering funds on illegal substances
- Transferring marital cash to friends or family to hide it from the court
- Buying luxury items beyond one’s means
When courts examine wasteful dissipation cases, the judges generally focus on conduct that occurred when the relationship is failing. They may not consider bad investment decisions or unwise spending during a stable period of the marriage.
Proving the paper trail of waste
To get your fair share back, you must prove that your spouse’s spending was for a non-marital purpose. Consider hiring a forensic accountant to trace your spouse’s expenses and obtain tangible evidence of their financial misconduct. Establishing a paper trail through bank statements and credit card records is also essential.
Additionally, you must demonstrate that the spending happened while the marriage was experiencing an irretrievable breakdown.
Balancing the scales in your favor
Under New York law, wasteful dissipation is one of the factors a judge must consider when deciding how to distribute property equitably. If the judge finds your spouse wasted assets, they may award you a larger percentage of the remaining assets to make up for your share of what was lost.
You deserve a settlement that reflects the reality of your contributions to the marriage. Because the burden of proof for waste dissipation is high, navigating these financial and legal nuances alone can be overwhelming. An experienced attorney can serve as your guide through the divorce process. With their help, you can find options to protect your financial future.