A divorce in any state comes with complications, especially for people who have built a lifetime of assets together.
As one of the few community property states, a divorce in Texas does not always equate to an equitable split of assets. That creates a concern that a future ex may consider the dissipation of marital assets. In general, that means purposely wasting assets to minimize the amount of the estate.
1. Spending extravagantly
Any assets frivolously spent that do not benefit the marriage serve as a form of dissipation. This type of waste may include a spouse taking an extravagant vacation alone, purchasing an expensive vehicle in their name, or generally overspending on clothes and other items.
2. Funding a marital affair
When a divorce involves an affair, money spent on the affair means that money only benefits one spouse. From fancy gifts to money spent on hotel rooms, maintaining financial records makes it easier to prove where those funds went.
3. Giving away assets
Along with potentially hiding assets, some people decide to give away shared assets only to regain them down the road. Forms of this may look like giving expensive jewelry to a sister. Selling off assets at a low-ball price also falls into the waste category, such as selling an antique chair for hundreds of dollars less than its worth.
With the courts focused on splitting marital assets 50/50, a person wants to ensure that all assets get accounted for. If marital asset dissipation gets proven, it will come with financial consequences for the offending spouse.
