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Family Law

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?

Generally, using marital property for a purpose unrelated to the marriage while the marriage is breaking down, such as spending on an affair, gambling, or hiding or giving away assets. Each state defines it differently, and normal household expenses usually do not count.

How do courts remedy dissipation?

Courts commonly award the other spouse a larger share of the remaining marital property, or treat the wasted amount as an asset already received by the spouse who dissipated it. The available remedies depend on state law.

Who has to prove dissipation?

Typically, the spouse alleging dissipation must first show that marital funds were used in a questionable way. In some states, the burden then shifts to the spending spouse to show where the money went and that it served a legitimate purpose.
Last updated: January 24, 2026
Reviewed by: Quilia Legal Content Team

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