In the context of a high-asset divorce, asset dissipation occurs when one spouse deliberately reduces the value of the marital estate to prevent the other from receiving a fair share during the divorce. This behavior can involve reckless spending, hiding money, or transferring assets to third parties.
Courts take asset dissipation seriously, and it can significantly impact the outcome of property division.
Financial impact of asset dissipation
When a spouse wastes assets before a divorce, it can hurt both parties financially. The spouse who wastes assets might have to give up a bigger portion of the remaining property to make things fair. Michigan courts focus on fair distribution, and if they find evidence of asset dissipation, they might adjust who gets what accordingly.
Legal consequences for wasting assets
In Michigan, wasting assets on purpose can lead to legal trouble. Courts might see it as bad behavior and could penalize the spouse who did it. These penalties could include paying the other spouse’s legal fees or facing other financial sanctions.
Protecting against asset dissipation
To guard against asset dissipation, the non-dissipating spouse needs to gather evidence and document any suspicious financial behavior. This includes looking at bank statements and credit card bills for anything suspicious. Working with a lawyer can help you take quick action, like getting a restraining order, to protect the assets until the divorce is final.
Taking steps to monitor and protect shared assets during a divorce is important. By staying vigilant, you can help ensure a fair outcome and safeguard your financial future. Acting quickly to address any signs of asset dissipation can make a significant difference in the final division of property.
