When Divorcing Spouses Try To Lose Money On Purpose – And How To Stop It

Some spouses act very strangely when faced with the prospect of a divorce. These individuals may be in states of denial, pushing back against the inevitable end of their marriages and trying desperately to keep the relationship going for as long as possible. Others feel a sense of bitterness that prompts them to engage in acts of petty revenge. One of the strangest and most destructive things a spouse can do during a marriage is intentionally lose money. But why might your spouse might want to engage in this behavior, and how can you stop it?

Willful Dissipation of Assets 

Some spouses adopt a very sinister mindset when faced with the prospect of handing over roughly half of their assets to their exes. In their minds, it is better to throw away everything rather than seeing their exes receive a single cent. If your ex adopts this mindset, they may engage in something called “willful dissipation of assets.” This is a legal phrase which means “throwing away money on purpose.”

Examples of willful dissipation of assets include:

• Giving everything to charity
• Losing everything at a casino
• Converting the entire family’s assets into gold and throwing it into the ocean

There are many other potential ways a spouse could engage in this behavior, but the most important thing to remember is that it is highly illegal. Your spouse will likely face serious legal consequences if they willfully dissipate assets. That said, you should take action with the help of your attorney as soon as possible to avoid losing your money.

 Inflating Legal Fees 

In many situations, spouses with higher income and financial resources end up paying for their ex’s legal fees. In an ideal world, this system would be fair. After all, spouses with less money will receive a portion of the family estate anyway – so it makes sense for them to have access to these funds before the divorce in order to pay their legal fees.

However, spouses sometimes intentionally inflate these legal fees in order to inflict as much financial damage on their exes as possible. For example, they might draw out the divorce for as long as possible, choosing an expensive litigated divorce instead of a settlement. Fortunately, this behavior is also frowned upon by family courts, and spouses face consequences if they engage in this behavior.

 Deferring Promotions and Bonuses 

Finally, spouses may intentionally defer bonuses and promotions in order to achieve an advantage when it comes to support payments. Since calculations for monthly payments are based on income, it makes sense to defer promotions and bonuses until after the divorce has been completed. Of course, you can modify your support payments if your spouse accepts these promotions and bonuses at a later date.

Where Can I Find a Qualified Divorce Attorney in Florida? 

If you’ve been searching for a qualified, experienced Orlando divorce attorney, look no further than Steve Marsee, P.A. Over the years, we have assisted numerous divorcing spouses with almost every legal issue imaginable. We know that the emotional turbulence of a divorce can cause spouses to engage in self-destructive, harmful behavior. With our help, you can mitigate the effects of this behavior and pursue financial security in your post-divorce life. Book your consultation today to get started.

Sources: 

financialpost.com/personal-finance/family-finance/family-law-faces-double-dipping-dilemma-when-it-comes-to-stock-options-other-deferred-compensation

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