Dissipation in Arizona refers to squandering or wasting marital assets before a divorce. This occurs when one spouse uses marital assets for their own benefit, or a purpose unrelated to the marriage, without the knowledge or consent of the other spouse. Dissipation of assets can have a significant impact on the division of property in a divorce and can lead to a less favorable outcome for the affected spouse.
Purchasing luxury items
Examples of dissipation of assets include using marital funds to purchase a luxury item, such as a boat or a car, for personal use or using marital funds to support a paramour. It also includes spending large sums of money on gambling, drugs or other activities that are not related to the marriage.
Hiding assets
Dissipation of assets can also occur when one spouse intentionally hides or transfers assets to prevent them from being included in the division of property during a divorce. Common examples of attempts to hide assets include transferring ownership of a property or a business or hiding cash or other valuables.
Proving dissipation of assets
Proving the dissipation of assets can be challenging, as it often requires a thorough investigation of financial records, including bank statements, credit card statements and tax returns. Hiring a professional to guide you through the process may be necessary for pinpointing hidden assets or extravagant purchases.
If dissipation of assets is proven, the affected spouse may be entitled to a larger share of the marital assets or may be awarded additional property or financial compensation to make up for the assets that were wasted or hidden. The court will also consider the length of the marriage and the standard of living during the marriage to determine how to divide the assets fairly.
It is important to note that dissipation of assets can also happen after the divorce papers are filed, so it’s important to keep track of assets and to be aware of any suspicious behavior from the other party.
Avoiding dissipation of assets
To avoid being financially wronged during a divorce, it is essential to take an active approach to track marital assets. Dissipation of assets can have a significant impact on the division of property in a divorce and can lead to a less favorable outcome for the affected spouse. If you suspect that your spouse is engaging in the dissipation of assets, understanding how the other party may try to spend or hide assets is the first step to safeguarding your rights.