Four Common Examples of Asset Dissipation During Divorce

 Posted on January 22, 2026 in Division of Property

Perhaps you and your spouse have not been getting along for years. You may have contemplated divorce, and even discussed it, but neither of you took the initiative. Now, it’s 2026, and your spouse appears to be spending large amounts of money somewhere, and you are worried.

Financial trouble is a very common reason for divorce. A spouse who has simply always had a bad spending habit may leave both spouses in serious debt without any clear solution. In certain situations, a spouse's wasteful spending may be bad enough to be considered "asset dissipation." 

If you are wondering if your spouse's behavior qualifies as dissipation, you need to discuss your case with an Illinois divorce attorney. If your attorney believes you have a case for asset dissipation, you will need to make your case in Court.  

What is Asset Dissipation? 

The word dissipation essentially means "waste." In the context of divorce, Illinois law defines dissipation as using marital property (usually money) for the sole benefit of one spouse, for things unrelated to the marriage, while the marriage is permanently breaking down. Asset dissipation claims are often also called "marital waste" claims.

If one spouse was dissipating assets, then one may be able to recover the wasted money during the divorce process. But this only works if the behavior is of a certain kind, and only if action is taken within a certain time frame.

Common Ways Spouses Dissipate Assets

There are many ways a spouse can waste the value of a marital estate, from slow and steady erosion caused by gambling to outright destruction of property. Here are some of the most common types of asset dissipation behaviors: 

Gifts and Transfers

People who believe they are headed toward a divorce will sometimes try to get the upper hand in marital property negotiations by simply hiding assets to recover at a later time. If you discover your spouse has been giving away large amounts of money or valuable property to friends or family – even if your spouse claims that the property has been given only as a gift – if it was done without your knowledge or consent, this may be considered dissipation.

Gambling, Compulsive Spending, or Drugs and Alcohol

Many people drink, gamble, shop a little more than they should, or even do small amounts of illicit drugs without jeopardizing their financial future. But when this behavior becomes so wasteful that a marriage's finances are seriously threatened, these behaviors may be viewed as dissipation.

Affairs 

The most common causes of successful asset dissipation claims are extramarital affairs. Carrying on a relationship outside of a marriage is not only expensive, but is almost always done without the other spouse's knowledge, making many affairs a clear-cut case of marital asset dissipation.

Neglected Financial Responsibilities

One of the most sad and shocking aspects of divorce for many people is how far their spouse is willing to go to lash out against them. When one spouse purposefully does not make mortgage payments, allows precious family heirlooms to be destroyed, or allows a family business to be run into the ground, all to get back at a spouse during the asset division process, this may be asset dissipation.

How Can I Get Back Money Lost My Spouse Wasted Before Our Divorce?

Trying to recover money dissipated by one spouse is not always possible, especially if a couple does not have much money to begin with. However, marital property needs to be divided in every divorce, and an asset dissipation claim may allow one spouse to recover at least a portion of the wasted assets. If you want to take this route, you will need to: 

• Identify the dissipation, with proof like receipts, photos, bank statements, etc.

• Establish a timeline that includes the date when your marriage began irretrievably breaking down and that the asset dissipation happened within that time frame.

• Show that it has not been more than three years since you knew, or more than five years if you did not know, about the dissipation.

• File a notice of intent to claim dissipated assets, which happens around the discovery and trial dates.

• Argue your case before the Judge. You will need to demonstrate by clear and convincing evidence that marital assets were wasted.

If this all sounds intimidating and difficult, not to worry – you will not be doing this on your own. The experienced attorney from The Law Office of Nicholas W. Richardson, P.C. will be there to guide you every step of the way and fight for your right to recover as much of the marital property as possible.

What Do Judges Do About Marital Waste? 

When one spouse wastes or hides money during a divorce, Illinois Judges have the power to make it right to the extent possible. Illinois law 750 ILCS 5/503 requires marital property to be divided equitably, which means fairly – not equally.

If an Illinois Court finds that dissipation occurred, the non-dissipating spouse may be given more marital property to make up for the wasted assets. How much someone can recover in a dissipation claim depends on:

• The overall remaining value of the marital estate

• The value of the property that was dissipated 

• The strength of the evidence proving dissipation

Dissipation claims are complicated and have strict time limits for filing. You must give the Court a notice that you intend to claim dissipation no later than 60 days before trial, or 30 days after discovery ends – whichever is later. Getting these dates right, and finding evidence to support dissipation claims, is not easy and is best done with the help of an experienced divorce attorney.

You may also need the help of other financial professionals, such as forensic accountants, to find out just how much money was wasted. You may need to go back through several years’ worth of bank accounts, statements, and bills. Spouses who waste marital property – especially those with addiction issues – often get very good at hiding evidence of their behavior.

Contact a Palatine, IL Divorce Lawyer Right Away

If you are concerned your spouse is wasting your marital estate, you should contact an Arlington Heights, IL divorce asset dissipation attorney right away. The sooner you take action, the more likely you may be to recover the money your spouse has dissipated. Call The Law Office of Nicholas W. Richardson, P.C. now at 847.873.6741 to schedule a free, confidential consultation.