Dissipation of Marital Assets
Is property is subject to equitable distribution even if "spent" by a spouse
The Legislature did not define ‘dissipation’ of marital property [when it required the courts to look to the issue under N.J.S.A. 2A:34-23.1. It is clear however that the concept is a plastic one, suited to fit the demands of the individual case...Dissipation may be found where a spouse uses marital property for his or her own benefit and for a purpose unrelated to the marriage at the time when the marriage relationship was in serious jeopardy.” Kothari v. Kothari, 255 N.J. Super. 500, 507 (1992).
“In resolving this issue, courts have considered a variety of factors, including, ‘most commonly,’ the following:
(1) the proximity of the expenditure to the parties' separation,
(2) whether the expenditure was typical of expenditures made by the parties prior to the breakdown of the marriage,
(3) whether the expenditure benefited the "joint" marital enterprise or was for the benefit of one spouse to the exclusion of the other, and
(4) the need for, and amount of, the expenditure.” Id.
“The question ultimately to be answered by a weighing of these considerations is whether the assets were expended by one spouse with the intent of diminishing the other spouse's share of the marital estate.” Id.
If you are about to be divorced or in the process of separation be careful what you spend because you might have to pay some of it back to your spouse.
