In the sphere of divorce proceedings, disputes over financial assets often contribute to the complexity of the process. One crucial aspect that can lead to significant contention is one spouse's allegation of asset dissipation against the other. Today, we will explore how much allegations can impact the outcome of a divorce case and potentially escalate the proceedings into a contested divorce.

Definition of Asset Dissipation

Asset dissipation refers to the intentional depletion or wasteful spending of marital assets by one spouse intending to diminish the overall value of the marital estate. This can involve various activities, such as hiding assets, lavish expenditures, extravagant gifts to third parties, and transferring assets to family or friends to keep them out of the divorcing spouse’s reach. Such actions are not only unethical but can also have legal consequences during divorce proceedings.

Allegations of Asset Dissipation as a Cause for Divorce Contention

When one spouse suspects the dissipation of assets, it can significantly impact the divorce proceedings. These allegations often generate intense mistrust between the spouses, creating an atmosphere of hostility and making the process even more acrimonious. The accused spouse typically seeks to prove the dissipation of assets, leading to complex investigations and additional legal expenses. Moreover, the accused spouse may face negative consequences if the accusations are proven, such as being required to reimburse the dissipated value or having their share of the marital property reduced.

When a couple weds, “yours” and “mine” become “ours.” Whether intentional or unintentional, spouses’ finances almost always become entangled during a marriage. Separating assets and debts is often a significant hurdle during the divorce process.

If you are thinking about getting divorced, you may have questions about how property is divided between spouses in Texas. Who keeps the marital home? What about vacation homes and rental properties? Will I be responsible for my spouse’s debts? The answers to these questions vary from case to case, based on several different factors. Read on to learn more.

Community Property is Divided Equally

States vary with regard to property division during divorce. Texas is a community property state. This means that almost all of the income and assets acquired by either spouse are considered community property or marital property. Both spouses have a right to an equal share of community property.