Equitable or fair property division is the standard in North Carolina. Judges handling litigated divorce cases generally need to learn about the spouses and the marriage before deciding the best way to divide their property and debts.
Typically, the property division process does not factor in marital misconduct. However, there are exceptions for certain types of inappropriate financial activity. If one spouse intentionally wastes or destroys marital property, the other can ask a judge to consider that dissipation of their marital resources when hearing asset division disputes.
What circumstances might justify allegations of dissipation?
An expensive extramarital affair
Some people cheat because the opportunity suddenly arises. They are at a party and have an encounter that leads to a violation of their marital vows. Other times, adultery involves a pattern of inappropriate conduct, including furtive meetups, secret communications and inappropriate spending while pursing an extramarital romance. If one spouse can review credit card statements and bank records to quantify how much the other spent on an affair, they can ask the courts to consider those amounts when dividing marital property.
The intentional destruction or elimination of marital property
Some people respond to an impending divorce or marital issues with inappropriate conduct. They may attempt to destroy resources that belong to their spouse. Other times, one spouse might give away or sell assets that belong to the couple or to the other spouse as a way of extracting economic revenge. In such scenarios, the spouse who destroys, or sells marital resources for less than their fair market value may be liable for the negative impact their actions have on the overall value of the marital estate.
Questionable pre-divorce spending sprees
Some people don’t destroy property. However, they may spend every cent in a shared savings account or might max out joint credit cards so that there is more debt for the spouses to divide when they divorce. When one spouse engages in unusual spending behaviors immediately prior to a divorce, the other may be able to assert that their actions constitute dissipation. They may be able to request financial accountability for the amount spent or the debts accrued through unusual and inappropriate economic conduct.
Being able to identify and quantify the dissipation of marital assets can help people who are divorcing. Those who understand the rules that govern property division during divorces are in a better position to negotiate or to assert themselves in family court.