Navigating Asset Division and Dissipation in Divorce
Equitable Distribution of Marital Assets in Minnesota
Divorce often involves the complex task of dividing marital assets fairly. Minnesota follows the principle of equitable distribution, which doesn’t always mean an equal split of assets. The process becomes more challenging when one party has intentionally depleted marital assets.
Understanding Dissipation of Assets
Dissipation in divorce refers to the wasteful and frivolous expenditure of funds. If a spouse spends extravagantly just before the divorce, particularly to reduce the amount available for division, the court may consider this as dissipation. For instance, using marital funds for a luxurious trip with a new partner might qualify. Another form of dissipation occurs when a spouse artificially inflates the standard of living to enhance a spousal maintenance claim.
Distinguishing Dissipation from Necessary Expenditures
Not all large expenses constitute dissipation. Necessary expenses, like hiring a divorce lawyer, preventing foreclosure of a marital home, or paying off joint debts, are generally not considered wasteful. To prove dissipation, a spouse must show that the expenditures were inconsistent with the couple’s usual financial behavior during the marriage.
Court Remedies for Asset Dissipation
If a spouse successfully proves the other’s intentional dissipation of assets, the court may adjust the asset division accordingly. It can reduce the dissipating spouse’s share by the amount frivolously spent, ensuring a fair and equitable division of the remaining assets.
Seeking Legal Assistance for Property Division in Divorce
Dealing with property division and asset dissipation in a divorce requires skilled legal expertise. Contact us at (651) 661-2626 for a consultation. Our team has extensive experience in handling various property division issues in divorce, and we can help you navigate through your situation.