Dissipation of Matrimonial Assets

A divorce can be an incredibly stressful time for anyone involved. All parties want to achieve the best possible outcome for themselves when their marriage breaks down and, as a result, dividing assets can be a difficult process. If you have recently separated from your spouse or de facto partner it is advised that you seek to finalise your property settlement sooner rather than later.

What the Court Considers in Property Settlement?
The Family Courts of Australia determine how property of a relationship should be divided upon separation by using a number of steps which involves:
• Considering whether there should be any alteration of the parties’ interests at all;
• Ascertaining the net asset pool of the parties;
• Assessing the financial and non-financial contributions of both parties;
• Assessing various adjustment factors including the future needs of the parties; and
• Considering the practical effect of the proposed property settlement and whether the settlement is just and equitable for both parties.

Asset Dissipation
Asset dissipation refers to intentionally using up or wasting assets. It is not uncommon for one party in a family court proceeding to allege that another person has disposed of or distributed assets, which would otherwise be included in the matrimonial asset pool available for distribution to both parties.
These situations occur when one party unilaterally (without consultation with the other party or prior notice) does any of the following:
• Withdrawing funds from bank accounts and spends them:
• Giving away assets to friends and family members;
• Gambling and losing funds; or
• Selling assets for well below cost price.

Examples of How Dissipation Might Occur
If one party sets out to behave in such a way so as to purposefully reduce the value of matrimonial assets acquired by one or both spouses during a marriage, they might deliberately destroy a matrimonial asset (such as a car or house) or embark on the wasteful squandering of assets. For example, a cheating spouse who spent $100,000 on a holiday for their girlfriend or boyfriend to reduces the marital asset pool. One party might also try to reduce the asset pool through excessive gambling or through excessive drug or alcohol abuse.

If you are going through a separation and want to sort out your finances and parenting arrangement, Straits Lawyers are now offering online services in both English and Chinese.
Simply purchase our online services via this link: https://straits-lawyers.square.site/product/binding-financial-agreement-consultation-bfa-/5?cs=true

Alternatively, you can email us at info@straitslawyers.com or call at 08 8410 9069 to find out more.

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Please note that this article does not constitute legal advice and Straits Lawyers will not be legally responsible for any actions you take based on this article.