Lombard, IL Asset Dissipation Attorneys

Knowledgeable Lawyers Addressing Hidden or Wasted Assets in Lombard, Illinois

During a divorce, both spouses are expected to act in good faith and preserve marital property until it can be equitably divided. However, in some cases, one spouse may engage in behavior in which they waste, misuse, or hide marital assets. This is known as asset dissipation, and it can have a significant impact on how matters related to property division will be handled. Illinois courts take claims of asset dissipation seriously, and a spouse may be held accountable for actions that have affected the marital estate.

At A. Traub & Associates, we help clients in Lombard identify, investigate, and address asset dissipation during divorce proceedings. Our attorneys work diligently to protect our clients' financial interests and ensure that they will receive an equitable share of their marital property. We can also address a variety of other issues that may arise during a high net worth divorce, and we work to help our clients resolve these issues successfully while protecting their rights.

What Is Asset Dissipation?

There are many ways that a spouse may improperly use marital funds or property for their own benefit. However, to be considered asset dissipation, these actions must have taken place after a couple's marriage had begun to break down. When a spouse dissipates assets, their actions will reduce the value of the marital estate, potentially leaving the other spouse with fewer resources after the divorce.

During a divorce, the court may consider a spouse's dissipation of assets when determining how marital property will be divided. If dissipation is proven, the court may allocate a larger share of the remaining marital assets to the other spouse to compensate them for the loss.

Examples of Asset Dissipation

There are many ways that a person may dissipate marital assets, including:

• Excessive Spending: Lavish spending on luxury items, vacations, or entertainment for one spouse's sole benefit during the breakdown of the marriage is likely to be considered dissipation.
• Gambling Losses or Addictions: A person may waste marital funds through gambling or other high-risk financial behaviors, such as spending money on illegal drugs.
• Hidden Transfers: A spouse may transfer marital property to friends, relatives, or new romantic partners in an attempt to keep money for themselves or prevent certain items from being divided during divorce.
• Destroying Property: A person may deliberately damage or deplete assets, such as by selling property far below its market value, with the purpose of causing the other spouse to suffer financial harm.
• Unnecessary Debt: A spouse may incur debt for purposes unrelated to the marriage, such as by making large purchases on joint credit cards.

Legal Requirements for an Asset Dissipation Claim

Illinois law establishes specific requirements that must be met when raising and proving a dissipation claim in a divorce case:

• Specifying When Dissipation Occurred: Dissipation claims apply to actions that occurred after the marriage began to break down irretrievably. A spouse cannot claim dissipation for spending that occurred during a healthy phase of the marriage.
• Time Limits: A dissipation claim must be filed within three years after the alleged dissipation occurred or when it was discovered. Dissipation claims cannot address any actions that took place more than five years before a spouse filed a petition for divorce.
• Notice Requirements: The spouse alleging dissipation must file a notice with the court stating the date or period when the marriage began to break down and identifying the specific assets or funds that were dissipated. This notice must be filed at least 60 days before the date of a divorce trial or 30 days after the end of the discovery phase of the divorce.
• Proof: The spouse making the claim has the burden to prove that the other spouse engaged in dissipation. The other spouse may respond to the allegations by proving that the expenditures were related to a legitimate marital purpose.

How Asset Dissipation Affects Property Division

In cases where dissipation is proven, the court may adjust the distribution of marital property to compensate the non-offending spouse for the losses suffered by the marital estate. For example, if one spouse depleted $50,000 from a joint account for personal purposes, the court may award the other spouse an additional $50,000 from the remaining marital assets to offset the loss.

Responding to a Spouse's Attempts to Hide or Waste Assets

If you suspect that your spouse is hiding assets or engaging in wasteful spending, it is critical to act quickly. The attorneys at A. Traub & Associates can assist with:

• Conducting discovery to identify hidden accounts, transfers, or unusual financial activity.
• Working with forensic accountants to trace assets and uncover dissipation.
• Filing the appropriate legal motions to freeze accounts or prevent further asset transfers.
• Filing a dissipation claim to ensure that this issue will be addressed when dividing marital property.

Contact Our Lombard Asset Dissipation Lawyers

When asset dissipation is a factor in your divorce, you will need to make sure you take the right steps to protect your financial interests. At A. Traub & Associates, we help clients uncover hidden or wasted assets, and we will advocate for solutions that will help you move forward after finalizing your divorce. Contact our Lombard, IL hidden assets and asset dissipation attorneys at 630-426-0196 to arrange a consultation today.