If spouses are ending their marriage on contentious terms, there is a chance that one spouse may waste marital property out of spite. Proactively identifying this behavior is essential to protect your financial interests before the court distributes the assets. Here is what you need to know.
What does California law say?
California family law restricts both spouses from selling, dissipating or taking out loans secured by property until the distribution. They can do so the aforementioned things only with written consent from you or a court order. However, daily living expenses and business operation costs are exempt from such requirements.
How do you know if your spouse is wasting the marital assets?
A spouse can spend as usual to maintain their routine. However, there are certain red flags you might want to look for:
- Buying luxury goods
- Indulging in expensive hobbies
- Selling marital assets without consent
- Intentionally incurring business losses
- Making frequent, unexplained cash withdrawals
Spotting these patterns early can help you take protective steps before more assets are lost.
What if your spouse has dissipated the assets?
If your spouse has already dissipated the marital assets, California courts have mechanisms to address the imbalance. In most cases, the court offsets the wasted amount from their final share of the property division. This ensures that the non-offending spouse does not bear the financial burden of the other’s spiteful spending.
Protect your financial interests
To prove dissipation, you must provide clear evidence of unauthorized spending. The court will consider a variety of factors, including financial records and situational evidence. Because these issues involve complex legal procedures, it is vital to consult with a family law attorney immediately. They can help you file a “breach of fiduciary duty” claim or a “reimbursement claim” to recover what was lost.