Baltimore, MD Asset Dissipation Lawyers

Attorneys Addressing the Dissipation of Marital Assets in Baltimore Divorce Cases

Getting a divorce is rarely a simple process, but it can become much more complicated when one spouse has wasted, misused, or deliberately destroyed marital assets. This conduct is known as asset dissipation, and it may affect the other spouse's financial situation and the assets they should be entitled to share when marital property is divided. A person who believes that dissipation has occurred will want to make sure their spouse will be held responsible for this behavior.

At Silverman Thompson, our lawyers can help clients determine the best ways to address a spouse's misconduct during the breakdown of their marriage. When marital assets have been wasted, hidden, or destroyed, our legal team can help determine what happened, document the dissipation, and make sure this issue will be addressed correctly during a case.

What Is Asset Dissipation?

One spouse may take actions that result in marital assets being wasted, misused, destroyed, or otherwise depleted. When a person's actions took place at the time when a couple's marriage was undergoing an irretrievable breakdown, they may be accused of asset dissipation. This issue may influence the division of marital property, since courts may look at how the value of the marital estate was depleted by one party's dissipation and award the other party certain assets to make up for what was lost.

Examples of Asset Dissipation

Dissipation can take many forms, ranging from deliberate destruction of property to more subtle financial misconduct. It may include:

Wasteful or Reckless Spending

A person may spend marital funds on personal items, luxury purchases, or purposes that are for their own sole benefit. A person who drains a joint savings account to take vacations with someone other than their spouse, who makes large purchases of items that do not benefit their family, or who loses money to gambling or substance addiction may be found to have dissipated marital assets.

Extramarital Affairs

When a spouse has engaged in an affair and used marital funds to pay for travel, hotels, gifts, or other expenses, their spending may be considered dissipation. Documenting affair-related asset dissipation may require a careful review of credit card statements, bank records, and travel records to identify spending that was unrelated to the marriage or the family.

Transferring or Concealing Assets

A spouse who recognizes that a divorce is on the horizon may try to hide certain assets and prevent them from being divided with the other spouse. They may transfer assets to third parties such as family members, friends, or business associates, planning to get them back after the divorce is finalized. A spouse may also attempt to hide assets by moving funds into secret accounts, making large cash withdrawals, or converting funds into other assets, such as jewelry, artwork, collectibles, or cryptocurrency.

These actions may be considered to be dissipation because they reduce the value of the marital estate without the other spouse's knowledge or consent. During the divorce process, each party is required to provide a full and accurate financial disclosure to the other party. If they deliberately conceal assets and do not report them to the other spouse, they may be held responsible for this behavior.

Destruction or Deliberate Damage to Property

A spouse may destroy or damage marital property so that it will not be usable by the other spouse. These actions may be taken out of anger or spite, or a person may purposely try to cause their spouse to suffer financial harm. When a spouse can be shown to have intentionally damaged or destroyed a marital asset, they may be required to reimburse the marital estate for the financial losses that occurred.

Incurring Unnecessary Debt

A spouse may run up significant marital debts by taking out loans or making purchases on joint credit cards, and they may do this for personal purposes rather than for the benefit of their family. This form of dissipation can have the same effects as spending marital funds or disposing of other marital assets. In these cases, a person may be held solely responsible for paying certain debts.

Business-Related Dissipation

When a spouse owns or operates a business, they may use it to engage in asset dissipation. A business owner may manipulate the company's finances in ways that reduce its apparent value, such as by underreporting income, paying personal expenses through the business, deferring major transactions until after the divorce, or paying inflated salaries to family members or non-existent employees. They may take steps to make a business appear to be worth much less than its actual value, preventing the other spouse from accessing assets that should be considered marital property.

Forensic accounting may help to uncover business-related dissipation. Our attorneys work with financial professionals who can examine a business's records, tax returns, profit and loss statements, bank accounts, and other financial documents to identify discrepancies that show that the business's finances have been manipulated. We can make sure business valuations will be performed correctly while helping our clients receive a fair and equitable share of their marital property.

Contact Our Baltimore, Maryland Asset Dissipation Attorneys

When a spouse has wasted or destroyed marital assets during a divorce, the attorneys at Silverman Thompson can help clients address this issue correctly. We understand the complex legal and financial issues that may arise in these cases, and we can identify dissipation that has occurred and make sure a spouse will be held accountable for their actions. Contact our Baltimore marital asset dissipation lawyers at 410-385-2225 and arrange a confidential consultation where we can review your financial circumstances and advise you on the best strategies for success during your divorce.