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Attorneys at Raleigh Divorce Law Firm

How can you prove the dissipation of assets?

On Behalf of | May 13, 2024 | Property Division |

You and your spouse must divide your marital property in divorce – from the house and retirement accounts to the furniture in your living room. North Carolina law prioritizes fairness in this process, but what if your spouse does everything they can to prevent a fair division?

If you believe your spouse is dissipating the marital assets before the divorce, then you must act quickly to protect yourself, your finances and your future. However, how exactly do you prove it?

Gather the evidence

Suspicion is not nearly enough. To hold your spouse responsible and ensure a fair division of marital assets, you must provide solid proof that they dissipated assets. So, it will help to create a file consisting of:

  • Credit card and bank statements, to show withdrawals or excessive spending
  • Tax returns from previous years, especially if your spouse underreports income or overpays taxes
  • Photographic evidence of destroyed property, especially if it was a high-value item
  • Documentation of budget changes, such as spreadsheets or receipts

As we have discussed in previous blog posts, it may also help to keep a detailed record of any other actions your spouse takes that could have an effect on your finances, but do not necessarily have a paper trail. For example, if they gift an expensive asset to a family member or friend.

Professional testimony can be key

You do not have to prove all of this on your own. You may wish to look into working with a forensic accountant. It is their job to investigate and audit finances, and they know precisely what to look for to prove that someone misused assets. A divorce attorney also has the experience to secure your financial future in the property division process. These professionals can help you collect the evidence and present it to North Carolina courts.

It can be frightening when you learn about a spouse’s squandering of marital assets. However, you have options and the power to protect your rights in such situations.