Marriage is a union built on trust, commitment and shared assets.
When the bonds of matrimony start to unravel, the division of assets becomes a key aspect of divorce proceedings. Couples facing a high-asset divorce often encounter a unique challenge known as marital waste dissipation. Understanding this risk is necessary for individuals seeking a fair and equitable separation.
Identifying marital waste dissipation
Marital waste dissipation occurs when one spouse recklessly depletes marital assets, potentially leaving the other spouse with fewer resources during the divorce settlement. This often involves excessive spending on non-essential items, extravagant gifts or hidden financial transactions. The dissipation of assets can significantly impact the financial well-being of both parties.
Common triggers for marital waste
Various factors can trigger marital waste in a divorce. Extravagant lifestyles, gambling habits or undisclosed financial dealings are common culprits. In some cases, one spouse might attempt to hide assets or transfer funds to obscure accounts, complicating the asset division process.
Georgia’s legal system acknowledges the risk of marital waste dissipation and aims to address it fairly. Courts assess the actions of each spouse leading up to the divorce to determine if wasteful spending occurred. If proven, the court may adjust the distribution of assets to compensate for the depleted funds, ensuring a more equitable outcome.
Protecting against marital waste dissipation
To mitigate the risk of marital waste, couples can consider creating a comprehensive financial plan before divorce proceedings commence. Open communication about financial matters and transparent disclosure of assets can foster a more cooperative and fair separation.
Considering that Georgia’s Superior Court had 41,499 divorce filings in 2022, the process takes time. Keeping tabs on finances during this period can help minimize the chances of a spouse depleting marital assets.