How to prevent asset dissipation

On behalf of Stange Law Firm, PC posted in divorce on Thursday, November 3, 2016.

When Missouri spouses know that their assets may be divided in a divorce, they may try to dissipate them. In other words, they are basically wasting assets in an attempt to deny the other spouse a fair share of marital property. For instance, a person who makes a lot of money may simply gamble it away or spend it on another partner.

This is done with the knowledge that they will simply make the money back. However, for the other spouse, it could pose serious challenges to their ability to achieve financially stability after a divorce. This is because that person may not have income right away, and it may be difficult to find work that pays much when first reentering the workforce. However, there are ways to stop a spouse from dissipating assets.

An automatic temporary restraining orderissued by a court at the outset of divorce proceedings may prevent a spouse from changing the financial status quo for a couple. One drawback is that assets may already be spent or otherwise wasted before the order takes effect. Furthermore, not all states follow this practice. To determine if assets have been wasted in a given case, it may be worthwhile to look at bank or credit card statements for recent transactions.

During a divorce, emotions may run high and may play a role in the decisions an individual may make as it relates to joint property. If an individual believes that joint assets are being used irresponsibly prior to or during a divorce, it may be worthwhile to talk to an attorney. Even if a TRO can’t be obtained, the attorney may want to bring the issue to the court’s attention during property division determinations.

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