Dissipation of Marital Assets in Florida Divorce: What You Need to Know

Dissipation of Marital Assets in Florida Divorce

Quick Answer: Dissipation occurs when one spouse intentionally wastes, hides, or depletes marital assets. Florida courts can award the innocent spouse a greater share of remaining assets to compensate. You must prove intentional waste for non-marital purposes when the marriage was in trouble.

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What Is Dissipation?

Dissipation is the intentional waste, depletion, or destruction of marital assets by one spouse, typically:

• During the breakdown of the marriage
• For purposes unrelated to the marriage
• Without the other spouse's knowledge or consent

Florida Statute 61.075(1)(i) specifically requires courts to consider:

"The intentional dissipation, waste, depletion, or destruction of marital assets after the filing of the petition or within 2 years prior to the filing of the petition."

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Common Forms of Dissipation

Spending on an Extramarital Affair

• Hotel rooms, dinners, gifts for paramour
• Travel with affair partner
• Apartments or expenses for affair partner
• This is the most common dissipation claim

Gambling Losses

• Casino gambling
• Sports betting
• Stock speculation (reckless trading)

Excessive or Unusual Spending

• Lavish purchases during separation
• Buying expensive items for others
• Running up credit card debt recklessly

Hiding or Transferring Assets

• Moving money to hidden accounts
• Transferring assets to family members
• "Loans" to friends that won't be repaid
• Cryptocurrency purchases to obscure assets

Business-Related Waste

• Paying inflated salaries to family members
• Making bad business deals intentionally
• Refusing profitable opportunities
• Excessive owner "expenses"

Intentional Destruction

• Damaging marital property out of spite
• Destroying valuable items
• Allowing assets to deteriorate

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The Legal Standard in Florida

What You Must Prove

To establish dissipation, the claiming spouse must show:

The Burden of Proof

Initial burden on claiming spouse to show:

• The expenditure occurred
• It appears to be for non-marital purposes
• It happened during the relevant time period

Then burden may shift to spending spouse to explain the expense and show it was for a legitimate marital purpose.

What's NOT Dissipation

Normal expenses during marriage are not dissipation:

• Reasonable living expenses
• Maintaining the household
• Paying existing bills
• Children's expenses
• Business operating costs
• Reasonable gifts within normal patterns

Courts look for unusual, excessive, or secretive spending—not normal household expenditures.

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How Courts Calculate Dissipation

Method 1: Add-Back to Marital Estate

Most common approach:

**Example:**

• Marital assets at divorce: $200,000
• Husband spent $50,000 on affair
• Court adds back: $250,000 total estate
• 50/50 split: each should get $125,000
• Wife receives $125,000 of actual assets
• Husband receives $75,000 ($125,000 minus $50,000 dissipation)

Method 2: Unequal Distribution

Court awards greater percentage to innocent spouse:

• Instead of 50/50, may award 60/40 or more
• Accounts for dissipation in the overall split

Method 3: Specific Asset Award

Innocent spouse receives specific assets to compensate:

• May receive larger share of home equity
• May receive more retirement assets
• Direct offset for dissipated amount

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How to Prove Dissipation

Gather Documentation

Essential evidence includes:

• Bank statements and withdrawals
• Credit card statements
• Business records
• Tax returns
• Cancelled checks
• Wire transfer records
• Asset account statements

Forensic Accounting

For complex cases, hire a forensic accountant to:

• Trace money flows
• Identify unusual transactions
• Analyze lifestyle vs. income
• Find hidden accounts or assets
• Prepare court-ready reports

Discovery Tools

Use legal discovery process:

• **Interrogatories**: Written questions about spending
• **Requests for Production**: Demand financial records
• **Depositions**: Question spouse under oath
• **Subpoenas**: Get records from banks, employers, businesses

→ **Need help with discovery?** Our [Mandatory Disclosures](/services/mandatory-disclosures) service ensures you receive all required financial documentation.

Red Flags to Look For

• Large cash withdrawals
• Checks to unknown payees
• New credit cards you didn't know about
• Transfers to family members
• Cryptocurrency purchases
• Unusual business expenses
• Loans without documentation
• Gifts to third parties

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Timing Matters: The 2-Year Lookback

Florida's statute specifically mentions dissipation "within 2 years prior to the filing of the petition."

What This Means

• Courts focus on the 2 years before divorce filing
• Earlier dissipation may be harder to recover
• But courts have discretion—egregious waste may be considered regardless

Strategy Implications

If you suspect dissipation:

• File sooner rather than later to capture more conduct
• Request temporary injunction to prevent ongoing waste
• Document everything now

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Defending Against Dissipation Claims

If accused of dissipation, you can argue:

Legitimate Marital Purpose

• The expense was for normal living costs
• Both spouses benefited
• It was consistent with historical spending patterns

Timing Defense

• The expenditure occurred before marital problems
• The marriage wasn't irretrievably broken yet

No Intent

• The loss was accidental or market-driven
• Business losses were reasonable business decisions
• You didn't intend to waste assets

Both Parties Participated

• Spouse knew about and agreed to the spending
• Spending was joint decision
• Similar spending by both parties

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Protecting Yourself From Dissipation

Before Filing

• Document all marital assets and accounts
• Download or copy financial records
• Monitor unusual activity
• Preserve evidence of spending

At Filing

Request a Standing Order or Injunction prohibiting:

• Selling, transferring, or hiding assets
• Incurring unusual debt
• Changing beneficiaries
• Canceling insurance

Florida family law courts routinely enter such orders.

→ **Filing soon?** Our [Contested Divorce Starter](/services/contested-starter) package includes requests for protective orders to prevent further dissipation.

During Proceedings

• Continue monitoring accounts
• Request production of financial records
• Report violations immediately
• Request emergency hearing if significant dissipation occurs

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Common Mistakes in Dissipation Claims

Claiming Everything Is Dissipation

Courts won't buy it. Focus on clear, provable waste—not normal expenses or minor amounts.

Insufficient Documentation

"I know they spent money" isn't enough. You need records showing what, when, and how much.

Ignoring Your Own Spending

If you also spent marital funds, it weakens your claim. Courts look at both parties.

Waiting Too Long

Dissipation before the 2-year window is harder to recover. Act promptly.

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Get Help With Your Case

Dissipation claims require solid evidence and strategic presentation. Schedule a $95 Strategy Session to discuss protecting your share of marital assets.