What Happens If a Spouse Wastes Marital Assets Before Divorce?

One of the more common claims that occur in Florida divorces is when one party accuses the other of wasting marital funds before the divorce. This includes instances where one spouse emptied a shared bank account, gambled away funds from the marital estate, spent money on affairs, or purposefully devalued marital property.

In this article, the Clearwater, FL, famil lawyers at Cairns Law, P.A., will discuss a real Florida case that involved the “dissipation” of assets from the marital estate.

Background of the case

The aforementioned case involved two people who were going through a divorce. There were issues surrounding the equitable distribution of the marital estate. One party accused the other of dissipating (wasting) marital assets and funds prior to the divorce proceeding.

In this case, the court was tasked with deciding whether the money spent constituted dissipation. According to Florida law, marital property must be divided equally unless there is some reason why such a division is not justified. One reason would be the wasteful spending of marital assets by one of the spouses.

The trial court entered a final judgment dissolving the marriage and distributing the marital property. However, the lower court awarded the husband a larger share of certain marital assets. The court justified the unequal distribution in part because the parties had no minor children, and the wife had not helped raise the husband’s children from a previous marriage.

At the same time, the trial court failed to adequately credit the wife for marital funds the husband spent on his affair. Those expenditures included personal spending that benefited the husband and his mistress rather than the marriage itself.

The wife, thus, appealed.

The appeal

On appeal, the Fourth District Court of Appeal reversed certain aspects of the equitable distribution order by the trial court. The appellate court noted that there is no statutory authority under Florida law that permits the court to make an unequal distribution of property in situations where the couple had children together. It was stated that the contributions from both parties towards their marriage were considered to be significant.

However, it was also held by the appellate court that when marital misconduct leads to the dissipation of marital assets, then this can form the basis of equitable distribution. It was explained that where one spouse dissipates or depletes marital property without any benefit to the marriage, then the other spouse may be compensated by means of equitable distribution.

Since the husband was found to be using marital funds to finance his extramarital affair, the wife should have been credited for these dissipated funds.

Talk to a Clearwater, FL, Divorce Lawyer Today

Cairns Law, P.A., represents the interests of Clearwater residents during their divorce. Call our Clearwater family lawyer today to schedule an appointment, and we can begin discussing your next steps right away.

Source:

law.justia.com/cases/florida/fourth-district-court-of-appeal/1994/93-0176.html