Divorce is never easy, but the stress escalates when marital money suddenly goes missing.
If your spouse suddenly drains a joint account, buys luxury items, or spends large amounts of money without your knowledge, you may be dealing with dissipation of marital assets.
Dissipation means one spouse has used, wasted, or hidden marital property for their own benefit, during a time when the marriage is in jeopardy. Marital property, generally speaking, includes money or assets acquired during the marriage.
If your partner recklessly spends marital funds during a separation or hides assets, it’s not just bad behavior; it’s a legal issue that can directly impact the outcome of your divorce.
How Courts Handle Dissipation in DC and Maryland
While both DC and Maryland recognize dissipation, the rules around it are slightly different in each jurisdiction. Here’s what you need to know:
In Washington, DC:
To claim dissipation through spending in DC, one spouse must show that:
- The marriage was undergoing an irretrievable breakdown when the spending occurred
- The spending was for a non-marital purpose
- The actions were clearly meant to reduce the value of marital property
If this is shown, the spouse accused of dissipating assets must then prove the money was spent appropriately—for example, on necessary bills or shared expenses.
In Maryland:
Maryland courts follow a similar approach with dissipation, but they also look closely at:
- When the spending occurred (usually after things started falling apart)
- Why the money was used (was it reckless or secret spending?)
- Whether the behavior was clearly meant to keep the other spouse from receiving their fair share
In DC or Maryland, if the court agrees that dissipation occurred, the judge may adjust the division of assets to account for it and make things fairer by “putting the money back” into the pot when dividing everything up.
Common Examples of Dissipation
- A spouse uses marital savings to fund a vacation with a new partner
- A spouse withdraws large amounts of cash and refuses to explain why
- A spouse sells marital property for less than it is worth to a friend or family member
- A spouse makes secret purchases using large amounts of money
However, ordinary spending, such as paying rent, utilities, or other normal living expenses during separation, and spending on attorney’s fees to represent a spouse in the divorce, is not considered dissipation.
What to do if you Suspect Your Spouse is Dissipating Assets
- Collect evidence: Bank statements, receipts, emails, or texts can be helpful
- Talk to a family law attorney: These circumstances can be tricky to prove, so speak to a lawyer about the facts and next steps
- Act quickly: The longer you wait, the harder it may be to trace where the money went
Final Thoughts
If your soon-to-be-ex-spouse is draining accounts, hiding money, or spending wildly, you don’t have to accept it. This behavior unfairly reduces the marital estate, meaning there is less to divide between the spouses in the divorce. DC and Maryland courts take dissipation seriously, and if proven, it can make a big difference in how marital property is divided.
If you believe your spouse is dissipating marital assets, you should speak to a family law attorney immediately.
