Divorce often brings some tough financial questions to the forefront. If you suspect your spouse has spent marital funds for reasons unrelated to the marriage, you may be dealing with dissipation. Understanding dissipation can make a meaningful difference in protecting your financial future during an Illinois divorce.
What Is Dissipation
It is a general rule in Illinois that marital misconduct does not affect the division of property in a divorce—dissipation is the exception.
Dissipation refers to the improper use of marital assets by one spouse for that spouse’s sole benefit and for a purpose unrelated to the marriage at a time when the marriage is undergoing an irreconcilable breakdown. Often, this period is marked by events such as physical separation, the filing of a petition for dissolution of marriage, or a clear decision by one spouse that the marriage was ending. Spending that occurred while the marriage was still functioning normally is usually not considered dissipation, even if it appears wasteful in hindsight.
Dissipation can only cover spending that happened within the three years before the innocent spouse knew or reasonably should have known about it, and it can never go back more than five years before the divorce case was filed.
The Illinois Marriage and Dissolution of Marriage Act addresses dissipation as a factor courts must consider when dividing marital property. While the statute does not list every possible example, common examples include spending money on an affair, excessive gambling, or recklessly selling marital assets. Normal living expenses, reasonable business costs, or routine purchases generally are not considered dissipation, even if one spouse disagrees with them.
How Dissipation Is Proven in a Divorce Case
Proving dissipation requires evidence and careful documentation. The spouse making the claim has the burden of showing that marital funds or assets were improperly used or disposed of by clear and specific evidence. This often involves carefully tracing where marital money went and why.
Common methods of proving dissipation include reviewing bank statements, credit card records, loan documents, transaction histories, and other financial account statements. Text messages, emails, contracts, and witness testimony can also play an important role. In some cases, expert analysis from forensic accountants is used to identify patterns of spending or asset transfers that raise red flags. Asset valuators may also be necessary to establish the exact dollar amount of the dissipation.
Once a claim of dissipation is raised with sufficient evidence, the burden shifts to the other spouse to explain the spending and show that it was for a legitimate marital purpose.
Typically, a spouse must give written notice of a dissipation claim no later than 60 days before trial or 30 days after discovery closes, whichever is later. The notice must identify the date or date range when dissipation allegedly occurred, the amount dissipated, and the manner in which the assets were spent.
Why Catching Dissipation Is Important but Often Difficult
Dissipation can significantly affect the outcome of a divorce, which is why identifying it early is so important. Marital assets are meant to be divided equitably, and money that disappears without accountability can unfairly impact one spouse.
Early detection of dissipation can also prevent further financial damage. Once concerns are identified, a spouse can take steps to stop additional losses, such as seeking temporary court orders, restraining asset transfers, or closely monitoring accounts. The sooner dissipation is discovered, the more likely it is that remaining assets can be preserved.
At the same time, dissipation can be difficult to catch. Spending may be hidden through the use of cash instead of electronic banking, accounts may be secretly closed, or funds may be moved in small amounts over time. Emotional stress during divorce also makes financial oversight more challenging. Without timely action and thorough investigation, dissipated assets can remain undiscovered.
Consequences for Dissipating Marital Assets
When dissipation is proven, courts do not simply ignore the missing assets. Instead, the value of the dissipated property can be assigned to the spouse who wasted it.
This adjustment can result in the innocent spouse receiving a larger share of the remaining marital estate to offset the loss. In some cases, dissipation claims can substantially change the final property division and protect one spouse from absorbing the financial consequences of the other’s misconduct. However, this is assuming there are enough assets left over to fully rectify the dissipation. This is another reason why early detection is critical.
Dissipation can also significantly damage a spouse’s credibility before the court. When a spouse is found to have wasted, hidden, or misused marital assets, it often raises concerns about that spouse’s overall truthfulness. As a result, dissipation does not only affect the numbers involved in property division, but can also influence how the court views a spouse’s character and the weight given to their statements throughout the case.
Speak With Experienced Illinois Divorce Attorneys
Dissipation claims require knowledge of Illinois law, careful financial analysis, and strategic advocacy. If you believe marital assets have been wasted or hidden, it is essential to act promptly and work with attorneys who understand how to identify and prove dissipation.
Contact Hayes Law, LLC to schedule a consultation with experienced Illinois divorce attorneys. Our team can help you understand your rights and protect your financial future.
