Dissipation Of Marital Assets In Maryland

One of the most important issues in a divorce is how marital property will be divided between the two parties. In spite of the fact that Maryland courts try to provide for an even distribution of marital property in all cases, certain difficulties can emerge when one of the spouses tries to decrease the total worth of the marital property prior to divorce. Such behavior, which is referred to as “dissipation” of marital property, can greatly influence the final decision in a property division case.

Background of the case 

In the case we’re about to review, the disputing parties were in a situation where they were dealing with issues such as divorce and marital property. One of the parties complained that the other had deliberately used up marital assets for reasons that did not concern the marriage.

In particular, the party claiming the dissipation of marital property mentioned some of the expenditures made by the other party after the marriage began to fail. According to this party, the spending had diminished the marital estate and denied the complaining party their due share of the marital property.

Typically, in cases of such nature, the issue is whether the expenditure was a valid marital expense or was meant solely for the personal gain of the individual in a marriage failing.

The appeal 

The appellate court considered whether there are specific factors courts should consider when analyzing dissipation cases. According to the appellate court, dissipation occurs when a spouse uses property acquired during the marriage to benefit from it and for reasons unrelated to the marriage, once the relationship begins to deteriorate and irreparable damage is done.

It is worth noting that there are cases where spouses spend money on things in marriages where there are irreparable damages to relationships, and such instances do not constitute dissipation. Courts have to be able to identify the expenditures that do not qualify as dissipation in a particular situation.

The court analyzed the transactions that the other spouse claimed were dissipation and stated that the spouse claiming dissipation needs to provide credible evidence supporting their claim. Upon providing credible evidence, the court will be able to consider dissipation when making an equitable monetary award.

Key takeaways 

Several important considerations emerge from this case.

First, both parties should be careful about what financial moves they make directly prior to their divorce. Major gifts, transfers, gambling losses, or individual expenses can be subject to judicial scrutiny.

Second, thorough documentation may prove essential in proving or refuting allegations of dissipation. Bank records, credit card statements, and other types of records can serve as evidence.

Third, allegations of dissipation can affect the allocation of marital property. If an asset has already been disposed of by a spouse, it does not necessarily mean that its value will not affect a monetary award.

Lastly, if someone thinks that his or her spouse is dissipating marital assets, he or she should make sure to secure all the relevant documentation.

Talk to a Bel Air, MD, Divorce Lawyer Today 

Schlaich & Thompson, Chartered, represents the interests of Maryland residents who are going through divorce. Call our Bel Air family lawyers today to schedule an appointment, and we can begin discussing your next steps right away.

Source:

law.justia.com/cases/maryland/court-of-special-appeals/2018/0782-17.html