3 Examples of Asset Dissipation That May Affect a Divorce Case

 Posted on May 02, 2026 in Divorce and Finances

Dividing marital property fairly is often complicated on its own, especially when both spouses have serious financial needs. The process can become even more difficult when one spouse wastes, hides, or destroys marital property. This is known as asset dissipation, and it may need to be addressed before property can be divided fairly.

If you believe that your spouse has dissipated assets, work with a St. Charles, IL family law attorney to ensure that this issue is dealt with properly during the property division process. At Goostree Law Group, we have decades of experience in divorce law. We will stay vigilant during your case and take proactive measures to protect your assets.

Three Ways an Illinois Spouse May Dissipate Assets in 2026

Dissipation happens when one spouse uses marital property for his or her own benefit and not for the marriage or family. In Illinois, this must happen after the marriage has begun breaking down (750 ILCS 5/503). Consider some of the most common ways that a spouse may commit asset dissipation.

Affairs

An extramarital affair falls into the category of activities that are unrelated to a couple’s marriage. When a spouse commits infidelity, they are likely to secretly use marital funds to further their affair. This may include buying gifts for the person they are cheating with, spending money on hotel rooms or trips to other cities, or giving away items that are considered marital property.

An affair often marks a clear turning point in a marriage. It can signal that one spouse has stepped outside the relationship in a serious way. This can matter when the court looks at when the breakdown began and how each spouse acted during that time.

Addictions

A spouse who struggles with substance abuse may use marital funds to further their addictions. When a person uses illegal drugs or controlled substances, they may end up spending a significant amount of money to support these addictions. A gambling addiction can also cause a spouse to waste a great deal of marital funds.

Not every poor financial choice counts as dissipation. The spending usually must be for a purpose unrelated to the marriage and occur when the marriage was already breaking down. For example, occasional alcohol purchases may not be enough. Large unexplained withdrawals, casino losses, online betting records, or repeated purchases tied to substance abuse may be more serious.

Destruction of Property

In some cases, a person may intentionally destroy property in an attempt to harm the other spouse. This may be done out of spite, such as when a person breaks or ruins family keepsakes or items that their spouse has an emotional attachment to. In other cases, a person may intentionally waste money on frivolous items or activities in an attempt to limit the other spouse’s financial resources.

The court may look at the value of the damaged or lost property. It may also consider when the destruction happened and why it happened. Repair estimates, police reports, receipts, and witness statements may help show what happened.

What Is an "Irretrievable Breakdown" of the Marriage in an Illinois Dissipation Case?

In a dissipation case, the date of the marriage’s breakdown is critical. Dissipation can only involve wasteful spending that happened after the marriage began to deteriorate.

Pinpointing the exact date is not always simple. During a breakdown of the marriage, the spouses may still live together. They may still share bills or attend family events. However, their relationship may have reached a point where the trust, commitment, or shared purpose of the marriage has been seriously damaged.

Are There Deadlines for Filing a Dissipation Claim in Illinois?

If a spouse has dissipated marital assets, the other spouse may file a dissipation claim to address this issue. In general, a spouse has three years to file a claim once he or she learns about or should have known about the dissipation.

Any dissipation that occurred more than five years before a spouse filed a divorce petition cannot be addressed during the divorce process. If the court determines that dissipation occurred, a spouse may be required to reimburse the marital estate. Alternatively, the other spouse could be granted a larger share of marital property.

Common Warning Signs That Your Spouse May Be Dissipating Assets During an Illinois Divorce

Dissipation is not always obvious at first. A spouse may try to hide spending, move money, or make it look like normal expenses. You may notice that bank balances are dropping faster than usual. Credit card bills may increase without a clear reason. Your spouse may also become secretive about financial accounts.

Other warning signs may include large cash withdrawals, missing property, hidden bank accounts, unexplained loans, or sudden transfers to friends or family members. A spouse may also start selling property without telling you. In some cases, he or she may claim that money was spent on household needs, but the records do not support that explanation.

Start saving records if something seems wrong. Bank statements, credit card bills, text messages, emails, and receipts can all serve as vital evidence.

Can You Take Action To Stop Asset Dissipation Before It Happens?

If you believe your spouse is about to waste, hide, sell, or destroy marital property, you can ask the court for a temporary restraining order. This type of order can stop certain financial actions while the divorce is pending. This order may prevent a spouse from:

• Draining bank accounts

• Selling valuable property

• Transferring assets

• Making unusually large purchases

A temporary restraining order can be especially important when there is a clear risk of immediate harm. For example, a spouse may threaten to empty an account, sell a vehicle, or give money to someone else. In that situation, quick court action may help protect the marital estate before the damage is done.

Contact Our Kane County, IL Asset Dissipation Lawyers Today

If you believe that your spouse has dissipated marital assets, Goostree Law Group can help you determine how to address this issue during your divorce. We will fight to protect your financial interests and ensure that your marital property is divided fairly and equitably. Contact our St. Charles, IL property division attorneys at 630-584-4800 to set up a free consultation.