Dealing with Excessive Spending in a Pending Divorce

 Posted on June 01, 2020 in Property Division

Once divorce proceedings start, parties will sometimes change their spending habits. For some, it is an act of revenge. For others, it is a strategy they employ to increase their overall settlement amount. In either case, excessive spending habits could lead to serious financial consequences in the divorce. Learn what you can do to combat excessive spending in a pending divorce, and how a seasoned divorce lawyer may be able to help with the process. 

Defining Excessive Spending

For some, the phrase “excessive spending” applies to all frivolous or luxury purchases (i.e., going to the salon, wine subscriptions, etc.). However, in a legal setting, it is only applied when a party’s purchases go above and beyond their normal spending habits. 

As an example, consider the divorcing spouse who recently spent $400 at the hairdresser. While such expenditure may seem excessive, it would only be regarded as such by the courts if such appointments were not “typical” for the party. For the spouse who has routinely gone to the hairstylist throughout their marriage, this is considered a regular, reoccurring expense. Because of this, it would likely be factored into their cost of living. 

When Excessive Spending Becomes Intentional Dissipation

Not all divorcing parties spend out of spite, revenge, or manipulation. Some may not have had to manage finances on their own. Others may be using money to help them cope with the emotional aspects of their divorce. In these situations, an open conversation (perhaps with an attorney or mediator present) may help. 

However, some parties do spend intentionally. Their goal is to dissipate the assets so that they get a bigger slice of the marital estate. (Some will even go so far as to purchase items and then return or sell them after the divorce to increase their overall take-home). Such situations must be dealt with swiftly and aggressively to protect the estate. Contact your attorney for help if: 

• Your spouse is attempting to hide or lie about their spending habits;
• You notice your spouse is purchasing high-value items;
• Items of value begin to disappear;
• You believe your spouse is giving money away to family, friends, co-workers, or colleagues;
• Your spouse is purchasing extravagant gifts for friends, family, co-workers, or colleagues;
• You notice new inquiries on your credit report; or
• You suspect your spouse is spending marital funds on a new partner. 

Our Wheaton Divorce Lawyers Can Help You Curb Asset Dissipation 

If you suspect that your spouse is dissipating your marital assets, contact Davi Law Group, LLC for assistance. Our skilled Wheaton divorce lawyers can help you devise and implement a legal strategy for fighting asset dissipation in your divorce. Schedule your personalized consultation by calling 630-580-6373 today.

Source:

https://www.forbes.com/sites/jefflanders/2016/11/01/what-is-dissipation-of-assets-in-divorce-and-what-if-anything-can-you-do-about-it/#1a91ab993ec0