An Overview of Asset Dissipation in an Illinois Divorce

 Posted on March 21, 2025 in Property Division

Although we more often hear about adultery and betrayal surrounding the end of a marriage, financial betrayal can also trigger a divorce. When there is extreme financial malfeasance from one spouse, the other spouse may be left with significantly fewer assets to depend on in the future. Although Illinois is a no-fault divorce state, it does recognize financial betrayal and dissipation of marital assets. Proving dissipation in divorce can be an uphill battle, best addressed by an experienced Oswego, IL family law attorney.

What Is Dissipation of Marital Assets?

Dissipation of marital assets is generally defined as one spouse’s use of marital assets for his or her sole benefit and for a purpose that is unrelated to the marriage during a time when the couple’s marriage breaks down. There are many different forms of misconduct that can contribute to the dissipation of marital assets, even "loaning" family members large amounts of money, with the intent of having them give the money back to the loaning spouse after the divorce is final.

To be considered by the court, the expenditure must have occurred during the breakdown of the marriage rather than when the marriage was intact. The expenditure under the dissipation of marital assets must have benefitted only one spouse, with no benefit at all to the other. Some examples of dissipation of marital assets include:

•  One spouse’s gambling addiction
•  One spouse’s extramarital affair if a significant amount of marital funds were spent on gifts, housing, vacations, or other items for the girlfriend/boyfriend
• A serious drug addiction where thousands of dollars were spent on drugs
• Buying a high-ticket item like a boat or vacation home when the other spouse objected to the purchase and would obtain no benefit from the items because the marriage was ending
• A shopping addiction with one spouse purchasing expensive items that only benefited himself or herself
•  One spouse taking expensive vacations alone
• Large investments made with marital funds that the other spouse did not know about and would not have agreed to

It is not necessarily the size of each dissipated asset that matters; the court will consider dissipation claims even for items that are not wildly expensive if the cumulative effect on marital funds is significant. Business expenses are not usually considered dissipation if they align with the industry’s normal operations. Personal expenses disguised as business costs could potentially be considered dissipated assets.

How is a Dissipation Claim Asserted?

A dissipation of asset claim is usually negotiated for couples who engage in mediation. Otherwise, one spouse will bring a dissipation claim to the court's attention, creating a window of time in which all possible dissipation claims can be considered when distributing marital assets. A notice of intent to claim dissipation of marital assets must be given no later than 60 days before trial or 30 days after discovery close, whichever is later.

The claim must contain a period of time during which the marriage began suffering an irretrievable breakdown, along with identification of the dissipated property. Under 750 ILCS 5/503(d)(2), no dissipation will be considered prior to three years after the spouse claiming dissipation knew or should have known of the dissipation, and in no case prior to five years before filing the Petition for Dissolution of Marriage.

Under Illinois law, a family court judge will require the spouse accused of dissipation of marital assets to disprove the other spouse’s allegations once a general showing of dissipation has been made by the spouse claiming dissipation. It is worth noting that disproving the dissipation of marital assets requires actual facts and receipts. If a spouse is being accused of dissipation and claims he or she spent an $800 cash withdrawal on "family things," receipts will be required to prove that claim.   

How Are Marital Assets Divided When a Claim of Dissipation of Assets Is Alleged?

If dissipation of assets is found to be a factor, then marital assets will be divided "justly," which means the spouse who did not dissipate assets will likely receive a larger share of the marital assets. Strict mathematical equality is not a requirement, so it is largely up to the judge’s discretion on how marital assets will be offset to reimburse one spouse for the dissipation of marital assets by the other.

Could One Spouse Be Required to Pay More Spousal Support if Deemed Guilty of Dissipation of Marital Assets?

Like the division of marital assets, the judge has the discretion to determine whether one spouse will be required to pay more spousal support due to the dissipation of marital assets. If the dissipation was extensive and there were not enough marital assets to award to the other spouse to make up for it, then a judge might decide to award the spouse a larger amount of spousal support or spousal support for a longer amount of time.  

What Are Some of the Most Common Defenses to Dissipation of Marital Assets?

A spouse who is accused of the dissipation of marital assets can defend his or her position in court, and even if the court agrees there was asset dissipation, it is not required to offset the amount against marital assets. In other words, the court has wide latitude in these matters, making it a smart move for the spouse accused of dissipation to defend himself or herself. While each case is different, some of the most common defenses against allegations of dissipation of marital assets include:

•  Provide receipts and/or credit card statements that show the alleged dissipated funds were used for legitimate marital purposes.
• Show that while the allegation of funds spent did occur, the money came from separate assets rather than marital assets.
• Argue that the alleged dissipated funds were spent to maintain the marital lifestyle of both parties.
• Show that the claimed dissipation of marital assets occurred outside the allowable timeframes.

Contact a Kendall County, IL Divorce Lawyer

Proving the dissipation of marital assets or defending false claims of asset dissipation can be difficult and time-consuming. Whether an expense will be considered "legitimate" will be solely up to the judge. Regardless of what side of the issue you are on, a Yorkville, IL divorce attorney from The Law Office of Matthew M. Williams, P.C. can help. Attorney Williams focuses his family law practice on mediation and collaborative divorce as a means of reducing costs and making the process quicker and easier. Call 630-409-8184 to schedule an initial meeting with the attorney.