How to Prove Dissipation of Marital Assets When Your Spouse Wastes Money

When a spouse deliberately wastes, hides, or gives away marital property during a divorce, it’s called dissipation. And if you can prove it, the court can hold your spouse accountable by awarding you a larger share of the remaining assets.

Here’s what dissipation means, how to prove it, and what you need to do right now to protect yourself.

What Is Dissipation of Marital Assets?

Dissipation occurs when one spouse wastes, depletes, or misuses marital assets for purposes unrelated to the marriage. This typically happens during separation or divorce proceedings when one spouse knows the marriage is ending and starts spending recklessly.

While the law doesn’t use the term “dissipation” explicitly, judges have the authority to consider each spouse’s conduct in dividing property, including whether one spouse wasted marital funds.

Common examples of dissipation include:

• Excessive gambling losses
• Lavish spending on vacations, luxury items, or entertainment
• Buying expensive gifts for a romantic partner or affair partner
• Making large cash withdrawals without explanation
• Transferring money to friends or family to hide it
• Selling marital assets for below market value
• Running up credit card debt on non-marital expenses

The key question is whether the spending benefited the marriage or was done to deprive the other spouse of their fair share.

What Doesn’t Count as Dissipation

Normal expenses that typically don’t count as dissipation:

• Mortgage or rent payments
• Utilities and household bills
• Groceries and basic necessities
• Children’s expenses (school, clothing, activities)
• Reasonable attorney’s fees for the divorce
• Medical expenses and insurance premiums
• Car payments and maintenance

The difference between legitimate expenses and dissipation comes down to whether the spending was reasonable and in furtherance of the marriage or family, or whether it was wasteful and intended to diminish the marital estate.

How to Prove Your Spouse Is Wasting Marital Assets

Proving dissipation requires documentation. You need to show the court that your spouse spent marital money inappropriately and that this spending occurred after the marriage started falling apart.

Gather Financial Records

Start collecting every financial document you can find:

• Bank statements for joint and individual accounts
• Credit card statements
• Investment account statements
• Loan documents and mortgage records
• Tax returns for the past several years
• Business financial records if applicable
• PayPal, Venmo, or other payment app records

Look for patterns of unusual spending, large withdrawals, transfers to unknown accounts, or purchases that don’t align with your family’s lifestyle.

Document the Timeline

South Carolina courts typically look at dissipation that occurred after the date of separation or when the marriage began deteriorating.

You need to establish:

• When your marriage started having serious problems
• When you or your spouse filed for divorce
• When the questionable spending began
• Whether the spending pattern changed after separation

If the spending suddenly increased after filing for divorce, that’s strong evidence.

Identify Specific Transactions

Create a detailed list of every transaction you believe constitutes dissipation.

Include:

• Date of the transaction
• Amount spent
• What was purchased or where the money went
• Why this expense was inappropriate or wasteful
• How it harmed the marital estate

Show the Money Wasn’t for Family Purposes

The key to proving dissipation is demonstrating that the spending didn’t benefit the marriage or family.

Evidence that helps:

• Receipts showing purchases of jewelry or gifts for a romantic partner
• Hotel receipts or travel bookings for trips you didn’t take together
• Witness testimony about your spouse’s affair or gambling habit
• Social media posts showing your spouse’s lavish lifestyle
• Text messages or emails discussing the spending

If your spouse bought a luxury car while you were struggling to pay the mortgage, that’s dissipation. If they took their boyfriend on a Caribbean vacation using joint funds, that’s dissipation.

Calculate the Total Amount Wasted

Add up every transaction you believe constitutes dissipation. This total amount is what you’ll ask the court to consider when dividing property.

For example, if your spouse wasted $30,000 on an affair partner, gambling, and luxury items, you can ask the court to award you an additional $15,000 from the remaining marital assets (your half of what was wasted) or to charge that amount against your spouse’s share of the property division.

What the Court Can Do About Dissipation

If you prove dissipation, South Carolina family courts have several options to compensate you:

Unequal Distribution of Assets

Under South Carolina’s equitable distribution law, the court can divide marital property in whatever way is fair and equitable. If your spouse wasted marital assets, the court can award you a larger percentage of what’s left to make up for the loss.

Charging Dissipation Against Spouse’s Share

The court can essentially “charge” the dissipated amount against your spouse’s share of the property division.

Ordering Reimbursement

In some cases, the court can order your spouse to reimburse the marital estate for money they wasted. This is more common when the dissipation was recent, and the spouse still has access to funds.

Awarding Attorney’s Fees

If your spouse’s conduct was particularly egregious, the court may also order them to pay your attorney’s fees for having to investigate and prove the dissipation.

What to Do If Your Spouse Is Wasting Assets Right Now

If you suspect your spouse is currently dissipating marital assets, act immediately:

Request a Temporary Restraining Order

You can ask the family court to issue a temporary restraining order that prevents your spouse from:

• Withdrawing large sums from joint accounts
• Selling marital property
• Transferring assets to third parties
• Running up credit card debt
• Closing investment accounts

This order remains in effect until the divorce is finalized.

Freeze Joint Accounts

If you have joint bank accounts or credit cards, contact the financial institutions to freeze the accounts or limit your spouse’s access. This prevents further dissipation while your case is pending.

File for Temporary Orders

Request a temporary hearing to ask the court to:

• Divide the remaining marital funds into separate accounts
• Set a budget for marital expenses during the divorce
• Require your spouse to account for recent spending
• Prevent further waste of assets

Document Everything

From this point forward, save every financial document, take screenshots of social media posts, and keep records of any conversations about money. The more evidence you have, the stronger your case.

Common Mistakes That Weaken Your Dissipation Claim

Waiting Too Long

The longer you wait to address dissipation, the harder it is to prove and the more money your spouse can waste.

Not Having Documentation

Vague accusations won’t work. You need bank statements, receipts, and concrete evidence of specific transactions. “My spouse spent a lot of money” isn’t enough.

Spending Recklessly Yourself

If you’re accusing your spouse of dissipation while you’re also spending marital funds inappropriately, the court will see you as equally at fault.

Ignoring Small Transactions

A few small suspicious purchases might not seem significant, but they add up. If your spouse is making dozens of $100-200 transactions that benefit their new partner, that’s still dissipation.

How Okoye Law Protects Clients From Dissipation

At Okoye Law, we’ve represented clients in Rock Hill, Fort Mill, and throughout York County who discovered their spouse was wasting marital assets during divorce.

We help clients by:

• Conducting thorough financial investigations to uncover dissipation
• Filing emergency motions to freeze accounts and prevent further waste
• Working with forensic accountants when necessary
• Presenting clear, documented evidence of dissipation to the court
• Arguing for unequal distribution that compensates you for your spouse’s misconduct

Don’t Let Your Spouse Get Away With Wasting Your Money

If your spouse is depleting marital assets through reckless spending, gambling, or funding an affair, you have legal options. But you need to act quickly before the money is gone.

If you believe your spouse is dissipating marital assets during your divorce, contact Okoye Law today for a confidential consultation. Let us help you protect your financial future and hold your spouse accountable.