What Is Dissipation of Assets?
When one spouse wastes marital funds for non-marital purposes during or before divorce.
Dissipation of assets occurs when one spouse uses marital funds for purposes unrelated to the marriage, typically during the breakdown of the marriage or after separation. Common examples include spending large amounts on an extramarital affair, gambling losses, excessive gifts to a new partner, or intentionally destroying marital property. When a court finds that dissipation occurred, it may credit the innocent spouse's share of the marital estate to compensate for the wasted funds. The spouse alleging dissipation generally bears the burden of showing that the spending occurred during the breakdown of the marriage and was not for a legitimate marital purpose. The accused spouse must then show that the spending was appropriate. Dissipation claims can be a significant factor in property division.
Free calculators for alimony, child support, settlement division, and housing costs.
View CalculatorsThis definition is for general educational purposes only and does not constitute legal or financial advice. Laws vary by state and change frequently. Consult a qualified professional for guidance specific to your situation.
From uncertainty to clarity in 3 steps
No account required. No credit card. Just your numbers.
Enter your numbers
Settlement amount, income, expenses, alimony, house — takes about 2 minutes. Everything runs privately in your browser.
See the projection
Get a year-by-year chart showing your net worth from now through age 100. Green, yellow, or red — you'll know where you stand instantly.
Model & export
Test different settlement terms to find which saves you the most money, compare offers side-by-side, and export a report for your attorney.
Every projection is deterministic — same inputs always produce the same outputs. Results are estimates based on the assumptions you provide.
See what a Pro analysis looks like
We built a complete Pro analysis for a fictional person named Sarah. Explore every section — charts, what-if scenarios, risk timeline, negotiation leverage — so you can see what’s included before running your own numbers.
You don’t need a $5,000 CDFA retainer to understand your own numbers
Start with the free projection. If the numbers raise questions you can’t answer, upgrade to Pro for $19 — one-time, no subscription — and discover which settlement terms could save you thousands.
Not financial or legal advice. DivorceSmart is an educational planning tool. Always consult a qualified attorney and financial advisor before making settlement decisions.