Property division can be one of the biggest headaches in a divorce. Texas law states that assets should be divided “in a manner that the court deems just and right, having due regard for the rights of each party and any children of the marriage.”
Each spouse may have a very different version of what that means. One person might think keeping the house is fair, while the other person considers that would be totally unfair. One way a spouse might try to alter things in their favor is by dissipating assets.
Spending to avoid having to share
Both spouses need to declare their assets to the court so it can decide how to split things up. If a spouse is worried they will have to give something up or give a share of it up, they might just decide to get rid of it first. They think that a court can’t order them to share it if they no longer have it.
People can dissipate assets in various ways. For example, they might make a large cash withdrawal and go play on the tables at the casino until there is none left. They might buy expensive items for themselves or someone they have started seeing, which they know their spouse would never approve. Or they might just give it away, be it to a homeless person on the street or an undisclosed charity. They might do it all in one fell swoop, or little by little over weeks or months.
People are certainly allowed to spend money during the divorce, but spending excessively to deprive a spouse of their fair share of assets is not permitted. If you suspect your spouse has been doing this, you’ll need to learn how to gather evidence and present it to the court so that it can take these illicit actions into account when dividing your property.