9 Common Types of Dissipation of Marital Assets in Maryland

If you’re facing a divorce in Maryland, one thing you might be worried about is what’s happening to the marital assets. Sometimes, one spouse may use shared money or property in ways that harm the other spouse’s financial future, especially when things start to fall apart. This is known as marital dissipation, and it can impact how we divide your property during the divorce.

Let me walk you through what marital dissipation is, how it shows up, and what you can do if you suspect it’s happening in your case.

What is Marital Dissipation of Assets?

Marital dissipation happens when one spouse spends or misuses marital funds for their own personal benefit, usually without the other spouse knowing. This can happen as the marriage is ending, and it reduces the assets available to divide during the divorce. In some cases, the court will adjust how we divide the property to account for this, ensuring a fair financial split.

9 Common Types of Marital Dissipation in Divorce

Here are some common examples of how marital dissipation might happen. If you recognize any of these, it’s important to get legal advice to protect your rights and ensure that you’re treated fairly during the divorce process.

1. Extramarital Expenses

   • If your spouse has been spending marital money on gifts, trips, or other expenses for a romantic partner, that’s a clear example of dissipation. Courts will typically take these expenses into account when dividing assets.

2. Excessive Gambling or Risky Investments

   • Sometimes, one spouse might gamble or make high-risk investments that lose money, reducing the overall marital estate. If this is happening, it could qualify as dissipation.

3. Alcohol or Substance Abuse

   • If large sums of money are being spent on drugs, alcohol, or other harmful habits, this can deplete marital assets. Courts may consider this dissipation, especially if it’s causing financial instability.

4. Lavish Personal Expenses or Purchases

   • When one spouse spends marital funds on things like expensive clothing, jewelry, or other personal luxuries that don’t benefit the marriage, we may consider it dissipation.

5. Cash Withdrawals and Unexplained Spending

   • Large, frequent cash withdrawals or purchases that are out of the ordinary could be a sign that your spouse is trying to hide or mismanage money.

6. Transferring Assets to Third Parties

   • If your spouse transfers marital assets to friends, family, or businesses without your knowledge or consent, it could be a form of dissipation, especially if they do it to prevent you from getting a fair share.

7. Mismanagement of Business Assets

   • If your spouse owns a business and uses marital funds in ways that harm the business or decrease its value, we may consider this dissipation.

8. Gifts to Friends or Family

   • Spending marital funds on expensive gifts or donations to people outside the marriage can be another form of dissipation, especially if your spouse does this without your knowledge.

9. Improper Use of Investment or Retirement Accounts

   • Withdrawing funds from retirement or investment accounts without your consent—especially as the divorce is approaching—can lead to significant financial loss and may qualify as dissipation.

What to Do if You Suspect Marital Dissipation

If you think marital dissipation is happening in your case, it’s important to act quickly. Here’s how you can protect yourself:

1. Consult with an Attorney
   • An experienced family law attorney can help you understand your options. They can guide you through the process, file requests to protect assets, and help you take legal action to prevent further losses.
2. Gather Evidence
   • It’s important to keep track of financial records, bank statements, and credit card activity. If you see anything unusual, it could help you prove that dissipation is occurring.
3. Document Spending Patterns
   • Keep a record of any spending that seems out of the ordinary. This includes large purchases, cash withdrawals, or strange transfers. This documentation will be valuable in your case.
4. Use Court Procedures for Financial Protection
   • If necessary, your attorney can ask the court to issue orders to stop further dissipation or to require your spouse to repay any misused funds.

How to Protect Yourself Financially During Divorce

Understanding marital dissipation is a big step in protecting your financial future. By keeping track of changes in your finances, working closely with an attorney, and taking action right away, you can help ensure that the divorce settlement is fair. The longer you wait, the harder it can be to recover any lost assets.

Take Control of Your Financial Future

Divorce can be tough, and when you add the issue of marital dissipation to the mix, it can feel overwhelming. But you don’t have to go through this alone. At Divorce With A Plan, we understand how important it is to protect your assets and secure a fair settlement. Our experienced divorce and family law attorneys are here to help guide you through the process and ensure that your rights are protected.

If you suspect marital dissipation or have questions about your financial future during divorce, reach out to us today. Call (240) 269-3592, and let’s discuss how we can help you protect what’s rightfully yours.

Download our FREE Guide for Marital Dissipation