How is Marital Dissipation of Assets Handled in Texas?

 Posted on March 24, 2025 in Divorce

Divorce can be difficult for virtually every couple, even those who are both in agreement regarding the divorce. Many divorcing couples must come to grips with the fact that they are now locked in battle with the person they planned on spending the rest of their lives with. While some spouses feel deep sadness for the end of their marriage, others are mostly angry, and still others are just relieved that it will soon be over.

Texas – along with eight other states - follows community property laws as far as the division of marital assets. This means that marital assets are divided equally, right down the middle, usually without exception. However, if one spouse has engaged in the dissipation of assets, that exception to the division of marital assets may apply. If you are facing divorce, speaking to a knowledgeable Hurst, TX family law attorney can be extremely beneficial.  

What is the Dissipation of Marital Assets?

As a community property state, everything acquired by a couple during their marriage is considered marital property. The only exceptions are assets owned prior to the marriage and inheritance or gifts to one spouse during the marriage, but only if those assets are not commingled with marital assets. If one spouse wastes or misuses marital assets, this can be considered a dissipation of assets.

Dissipation of assets can take many different forms, but it always involves wasteful or extravagant spending that benefits only one spouse. A spouse who has a girlfriend/boyfriend on the side may have taken that person on expensive trips, purchased expensive gifts for them, or even rented an apartment or home for them. This obviously has no benefit for the other spouse.

A gambling addiction that results in significant losses, a drug habit that costs thousands of dollars to support, or a shopping addiction that benefits only one spouse are all examples of dissipation of marital assets. If one spouse is hiding marital assets from the other during a divorce, this is also considered dissipation of marital assets.

This could include making huge "gifts" of money to family members or friends that will be repaid after the divorce. It can also include asking a boss to delay a bonus or raise until the divorce is final, hiding marital assets in cryptocurrency, stashing money in offshore accounts, or physically hiding expensive artwork or jewelry.

How Will a Judge Treat the Dissipation of Marital Assets?

A spouse who suspects the other is engaging in the dissipation of marital assets has the burden of proof. Providing evidence in the form of bank statements, receipts, and financial records is crucial to proving the dissipation of marital assets. Credit card statements might reveal extravagant spending, and bank statements could show unusual withdrawals.

If friends and family members saw the extravagant spending firsthand, they could be asked to testify. Receipts for any purchases made by one spouse that provided no benefit to the other can be submitted to the court. If the spouse was particularly good at hiding assets or hiding the fact that assets were being dissipated, a forensic accountant may be required.

Any evidence presented before the court must show when the wasteful spending began. The spouse alleging dissipation must file a formal complaint and present evidence, giving the other spouse an opportunity to defend the allegations. If the dissipation of assets is clearly shown, the judge is likely to adjust the division of marital assets, giving the innocent spouse a larger share of the assets as compensation.

In the end, the dissipation of marital assets is not just about money; it is about betrayal, which is why it is often known as "financial infidelity." It is important to have a divorce attorney who knows the best ways to prove the dissipation of marital assets and has the necessary resources to prove dissipation and uncover hidden assets.

Contact a Tarrant County, TX Marital Asset Division Attorney

If you believe your spouse has dissipated or hidden marital assets, a highly skilled Hurst, TX marital asset division lawyer from Daniel R. Bacalis, P.C. is ready to help. Attorney Bacalis is a Board-Certified Family Law Specialist. Call 817-498-4105 to schedule your free consultation.