DIVORCE AND DISSIPATION: What If My Spouse Is Overspending on Luxury Items and Clothes?

In the world of divorce law, particularly in Illinois, the issue of dissipation of marital assets often arises during the division of property. While divorce can be a complex and emotionally charged process, it’s important to understand how financial actions during the marriage and separation can impact the final property settlement. One question that frequently arises is whether spending on luxury items, such as shopping at high-end stores, can be considered dissipation of marital assets. Let’s explore this concept to help you understand how these types of expenditures could influence your case.

What is Dissipation?

Dissipation, in the context of divorce, refers to the intentional wasting or squandering of marital assets by one spouse during the period of separation or within a reasonable time before the divorce. Essentially, it involves using marital funds in a manner that is wasteful or frivolous, especially when that spending benefits only one spouse and not the family unit.

In Illinois, dissipation can include a range of activities, from extravagant vacations to gambling or excessive spending on luxury items like jewelry, art, or high-end clothing. If one spouse believes the other has misused marital funds for personal pleasure or indulgence during the dissolution process, they may claim that the spending is dissipation and should be considered when dividing assets.

High-End Shopping and Dissipation

When it comes to shopping at high-end stores, whether or not it constitutes dissipation depends on several factors. Illinois courts generally look at the following criteria:

1. Intentionality of the Spending:
   • The key question is whether the purchases were made with the intention to benefit the spouse alone, without consideration for the marital estate. If one spouse spends lavishly on designer clothing, accessories, or luxury goods without a legitimate family purpose, such expenditures may be flagged as dissipation.
2. Timing of the Purchases:
   • If the high-end shopping spree occurs during the period of separation or after the couple has agreed to divorce, it is more likely to be scrutinized. Courts may interpret these purchases as an attempt to hide or diminish marital assets right before the division, which could result in a dissipation claim.
3. Excessive or Unnecessary Nature of the Spending:
   • While spending money on high-end items is not inherently problematic, the court may consider whether the purchases are excessive in relation to the family’s financial situation. If the spending seems out of line with the couple’s income, lifestyle, and needs during the marriage, the court may view it as a form of dissipation.
4. Knowledge and Consent of the Other Spouse:
   • In a healthy marriage, major financial decisions are often made jointly. If one spouse indulges in high-end shopping without informing or consulting the other spouse, it may be considered an act of dissipation. On the other hand, if both parties have a mutual understanding of the financial situation and high-end purchases are part of the couple’s shared lifestyle, this could be a different case.

Examples of High-End Spending that Could Be Considered Dissipation:

• Luxury Clothing & Accessories: Purchasing expensive clothing, handbags, shoes, or jewelry from designer boutiques during the separation period.
• Gifts for a New Partner: If the spouse purchases lavish gifts for a new partner or significant other using marital funds, this could be a clear case of dissipation.
• Excessive Personal Expenses: Spending large sums of money on personal items that are not essential, especially if the purchases were made when the financial situation was precarious or in the midst of divorce proceedings.

What Can You Do If You Believe Your Spouse is Dissipating Assets?

If you suspect that your spouse is dissipating marital assets, such as through excessive shopping or other indulgent behavior, you should consult with an experienced Illinois divorce attorney. Dissipation claims can be complex and require detailed evidence to support the argument that the spending was inappropriate.

Some common actions your attorney may take to address dissipation include:

• Gathering Financial Records: Reviewing bank statements, credit card statements, and receipts to track the spending.
• Depositions and Interrogatories: Taking formal statements from the other party to uncover the intent and nature of the spending.
• Court Motion for Dissipation: Filing a motion in court to argue that certain expenditures should be considered when dividing the assets.

Conclusion

In Illinois, the court takes dissipation of marital assets seriously, and high-end shopping may indeed be considered dissipation under certain circumstances. If you are going through a divorce and believe your spouse has misused marital funds in this way, it’s important to consult with a knowledgeable divorce lawyer like Debbie Cohen of Cohen Law, LLC. She can help protect your financial interests and ensure that all assets are divided fairly. 

from Debbie Cohen https://cohenfamilylawyer.com/divorce-dissipation-marital-assets-illinois-law/