During a Texas divorce, spouses generally must divide their community property. State statutes make any income earned during marriage and property acquired with that income marital or community property.
Divorcing spouses must make full and accurate disclosures, which then guide property division negotiations or the litigation process. Some people resent the obligation to share with their spouses after a divorce. They may intentionally destroy assets, give property away, sell resources for less than they are worth, send money the couple had agreed to save to empty accounts or accrue major debts.
What impact can intentional dissipation have on the property division process?
The courts may consider financial misconduct
Generally speaking, family law judges handling property division issues do not consider marital misconduct when applying community property rules to marital assets. However, in cases where one spouse engages in financial misconduct as part of the divorce process, that behavior can influence how the courts divide property and debts.
Clear evidence of intentional dissipation can alter how judges handle property division matters. If one spouse maliciously took on debt to diminish the marital estate or for a purpose that damages the marital relationship, such as an extramarital affair, the courts may agree to exclude those debts from the pool of community property.
Other times, the courts may consider the value of wasted and destroyed assets when determining what should happen with the remainder of the marital estate. When there is clear proof of dissipation, spouses can ask the courts for financial justice.
Proof of financial misconduct can alter the final terms for the division of property and debts. Maintaining thorough records of financial misconduct and working with a professional to evaluate financial documentation can help those concerned about property division proceedings.