Illinois Divorce Lawyer Blog
Understanding Dissipation of Marital Assets in an Illinois Divorce: In Illinois divorce cases, the concept of dissipation of marital assets can significantly impact the division of property.
Dissipation refers to one spouse’s wasteful or improper use of marital assets for purposes unrelated to the marriage, often to the detriment of the other spouse. Understanding this concept is crucial for ensuring a fair division of property during divorce proceedings. Under Illinois law, specifically the Illinois Marriage and Dissolution of Marriage Act, marital assets are divided equitably, not necessarily equally.
Dissipation occurs when one spouse uses marital funds or property for uniquely personal benefit, unrelated to marital purposes, typically after the marriage has begun to break down irretrievably. Common examples include extravagant spending on items that are exclusive to the purchasing spouse (such as an expensive watch), gambling, funding an affair (travel, dinners, jewelry for a paramour), or transferring assets to hide them from the other spouse. For instance, if one spouse uses marital savings for lavish vacations or gifts to a third party after the marriage deteriorates, this could be considered dissipation.
To claim dissipation in an Illinois divorce, the accusing spouse must provide prima facia evidence, such as bank statements, receipts, or other financial records, showing the misuse of assets. The court will make findings as to whether the spending was intentional, excessive, and lacked a marital purpose. Timing is also critical; dissipation typically applies to actions taken after the marriage has irretrievably broken down. Sometimes the date of the start of the dissipation period is the filing of the petition for dissolution of marriage, and sometimes the party claiming the misspent marital funds can prove that the marriage was broken down well before the divorce was filed.
If dissipation is proven, the court can require that the amount of the wasted money be reimbursed to the marital estate, allowing the innocent spouse the return of his/her money that would have been received in the equitable division of the marital estate.