Dissipation of Marital Assets in Florida: A Legal Overview
Dissipation of marital assets is a significant issue in many Florida divorce cases. It occurs when one spouse intentionally wastes, depletes, or misuses marital property, often to deprive the other spouse of their fair share in the divorce settlement. Understanding how Florida law addresses this issue can help divorcing parties protect their rights and ensure equitable distribution of assets.
What Are Marital Assets?
Under Florida law, marital assets generally include property acquired during the marriage, regardless of which spouse holds the title. This can include:
1. Real estate, such as the marital home or rental properties.
2. Bank accounts and investments.
3. Retirement accounts.
4. Business interests.
5. Tangible personal property, like vehicles or furniture.
Non-marital assets, such as property acquired before the marriage or through inheritance, are typically excluded, unless they have been commingled with marital assets.
Defining Dissipation of Assets
Dissipation occurs when one spouse:
1. Spends marital funds on non-marital purposes (e.g., gambling, drugs, or extramarital affairs).
2. Transfers or hides assets to prevent the other spouse from benefiting.
3. Recklessly mismanages joint property or accounts.
Importantly, dissipation often happens after the marriage has broken down, though not always. Courts scrutinize transactions made during this period to determine whether they were done in bad faith.
Florida’s Legal Standard for Dissipation
In Florida, dissipation of marital assets is addressed under the principle of equitable distribution. Courts aim to divide marital property fairly, which doesn’t always mean equally. When dissipation is proven, the court may allocate the depleted assets to the offending spouse’s share to restore equity.
To prove dissipation, the accusing spouse must show:
1. Intentional Misconduct: The offending spouse deliberately wasted or misused marital assets.
2. Lack of Benefit: The dissipation did not benefit the marriage or household.
Simply making poor financial decisions or losing money due to bad investments does not typically constitute dissipation if there was no intent to harm the marital estate.
Proving Dissipation in Court
The burden of proof initially lies with the spouse claiming dissipation. Key steps to establish dissipation include:
1. Gathering Evidence: Bank statements, credit card records, and other financial documents can show improper spending or transfers.
2. Demonstrating Intent: Evidence of infidelity, secret accounts, or unexplained withdrawals may support claims of intentional misconduct.
3. Tracing the Timing: Courts may closely examine transactions that occurred after the breakdown of the marriage or during divorce proceedings.
If the claiming spouse provides sufficient evidence, the burden shifts to the accused spouse to justify the disputed expenditures.
Court Remedies for Dissipation
When dissipation is proven, Florida courts can adjust the division of assets to ensure a fair outcome. For example:
1. The value of the dissipated assets may be added back to the marital estate and allocated to the offending spouse share.
2. The court may award a larger portion of remaining assets to the non-offending spouse.
These remedies aim to prevent the offending spouse from benefiting from their misconduct.
How to Prevent or Address Dissipation
1. Act Quickly: File for temporary orders to freeze accounts or restrict spending.
2. Monitor Financial Activity: Keep detailed records of joint accounts and expenditures.
3. Consult an Attorney: An experienced Florida family law attorney can help identify dissipation, gather evidence, and protect your interests.
Conclusion
Dissipation of marital assets can complicate divorce proceedings, but Florida law provides mechanisms to address this behavior and ensure equitable distribution. If you suspect your spouse is dissipating assets, taking timely proactive steps and working with a knowledgeable attorney can help safeguard your financial future.
For personalized guidance on dissipation of assets or other divorce-related issues, consult a qualified Tampa Divorce Attorney Today. if you have any questions or concerns over whether your spouse has or is about to dissipate marital assets, it is important that you do not delay in seeking qualified legal assistance in addressing this issue. If you want to find out more about how an attorney at our firm can assist you with this issue and all other aspects of your divorce, do not hesitate to get in touch. Contact an experienced Tampa divorce lawyer at The Law
Office of Laura A. Olson, P.A. today.
