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How Is the Dissipation of Assets Handled in a Michigan Divorce?The end of a marriage can be difficult on many levels. The breakdown of a relationship can affect more than just spouses. If a couple had children together, they will likely be devastated to see their family unit split apart. In addition, breaking up can cause financial hardship for one or both parties. Michigan, like many other states, is an “equitable distribution” state when it comes to dividing assets or property in a divorce. This means any marital property will be divided in a fair way, but not necessarily 50/50. In some cases, one spouse may have made secret purchases with marital assets. The legal term for this deception is “dissipation of assets,” and an experienced divorce attorney can help discover it. 

Uncovering Hidden Expenditures

Dissipation is defined as spending marital money, or using any marital asset, for something that benefits only one spouse, not the marriage as a whole. Since funds are leaving the marital estate, the combined value of the assets being divided in the divorce settlement will be lower. Examples of dissipation can be gambling, drug or alcohol abuse, money spent on an extramarital affair, or any extravagant purchases made by one spouse.

It may be challenging to prove the dissipation of assets, but that is where a skilled attorney, as well as a forensic accountant, can help. They know where to look and how to reveal dissipated assets. Carefully reviewing financial records and documentation is essential in providing evidence that one party was siphoning off money for him or herself. In certain situations, one spouse could be guilty of filtering money or expenses through a business that they own.

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