How Connecticut courts handle wasteful spending before divorce

Emotions can run high when a marriage is ending, and sometimes, so can spending. When a spouse wastes marital funds on things unrelated to the marriage, it means there will be less to divide. This can be financially damaging, especially in cases where one spouse earned less or stayed home to care for children.

Such reckless financial behavior is known as the dissipation of assets. Connecticut courts take it seriously when dividing property during divorce.

What do judges look for?

Family court judges don’t automatically punish every bad financial decision a spouse makes in the build-up to or during divorce. Therefore, not all questionable spending qualifies as dissipation. Judges will ask questions like:

• Did the spending happen during the breakdown of the marriage?
• Was the money used for a personal or secret purpose?
• Did one spouse hide it from the other?
• Was it excessive or unusual for the couple’s lifestyle?

A poor investment decision, for example, likely won’t count as dissipation as long as it was made in good faith. Courts understand that people make financial mistakes. What matters is whether the spending was done intentionally to reduce the marital estate or for reasons unrelated to the marriage. Examples include gambling, lavish vacations, shopping sprees or spending money on an affair.

Evidence is key

You’ll need solid documentation showing that your spouse spent marital funds improperly and during the breakdown of your marriage to prove your case. Credit card statements, bank records, tax returns or even text messages and social media posts can help create a timeline and identify specific transactions that appear wasteful or unrelated to the marriage.

If the court agrees, the spouse who spent irresponsibly may be held accountable. Their share of the marital property could be reduced to compensate the other spouse. In some cases, the judge may assign them a greater portion of marital debt if that debt resulted from their reckless actions.

Proving marital asset dissipation and securing a fair divorce settlement isn’t always easy on your own. Seeking professional legal guidance can help you gather evidence, present your case and protect your financial interests as you move through the divorce process.