What is Dissipation of Assets?
Updated January 24, 2026
The waste, depletion or concealment of marital assets by one spouse for a purpose unrelated to the marriage, typically when the marriage is breaking down, which a court can take into account when dividing property.
Understanding Dissipation of Assets
Examples of dissipation include spending marital money on an affair, gambling losses, giving assets to friends or relatives, deliberately destroying property, or moving money out of reach before or during a divorce. States define and handle dissipation differently. Florida, for example, lists intentional dissipation, waste, depletion or destruction of marital assets after the filing of the petition, or within two years before it, as a factor that can justify an unequal division. Some states require advance notice of a dissipation claim. Common remedies include awarding the other spouse a larger share of the remaining property or treating the dissipated amount as if it were still part of the estate. Ordinary living expenses during separation are generally not dissipation.
Examples
- 1Large cash withdrawals in the months before filing that the spouse cannot explain
- 2Marital funds spent on travel and gifts for a new partner
- 3Selling a jointly used vehicle well below market value to a relative
Why This Matters in Legal Cases
Dissipation claims can recover real value for a client, but they depend on records: bank and credit card statements, transfer histories and timelines. Many states set time windows or notice requirements for these claims. Temporary orders restricting the transfer of assets can also prevent dissipation from happening in the first place.
Frequently Asked Questions
What counts as dissipation of marital assets?
How do courts remedy dissipation?
Who has to prove dissipation?
Related Terms
Equitable Distribution
The system most states use to divide marital property and debts in a divorce, in which the court splits the marital estate in a way it finds fair, which is not always an equal split.
Marital Property
Assets and debts acquired during the marriage that are subject to division in a divorce, as opposed to separate property owned before marriage or received as gifts/inheritance.
Discovery
The pre-trial phase in a lawsuit where each party can obtain evidence from the opposing party through various methods including interrogatories, depositions, and requests for documents.
Temporary Orders (Pendente Lite)
Court orders that set rules for custody, parenting time, support, use of the home and other issues while a divorce or family case is pending, until the court enters a final judgment.
Divorce
The legal dissolution of a marriage by a court or other competent body, ending the marital relationship and dividing assets, debts, and responsibilities.
For Family Law cases
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Clients upload statements and screenshots, and Quilia lists every account, card and loan it finds, so financial disclosure starts mostly done.
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