How Dissipation of Assets Affects Equitable Distribution in New York
New York has an equitable distribution system for dividing marital property, meaning that a judge divides assets based on fairness rather than applying a strict 50/50 split. Judges look at the big picture, including whether either spouse improperly spent, hid or gave away joint assets.
Among the factors weighed during equitable distribution are the following:
- Each spouse’s income, health and age
- The length of the marriage
- Any alimony (spousal maintenance) awarded to either party
- Each spouse’s contributions to the marriage, both economic and noneconomic
Another important factor is wasteful dissipation of assets by either spouse. The law states: “Neither party shall sell, transfer, encumber, conceal, assign, remove, or in any way dispose of, without the consent of the other party in writing or by order of the court, any property…individually or jointly held by the parties, except in the usual course of business, for customary and usual household expenses or for reasonable attorney’s fees in connection with this action.”
This means that neither spouse can spend, give away, sell or hide any property solely to minimize the assets they may be expected to split with the other in the final property distribution. Doing any of the following might be considered wasteful dissipation:
- Taking an expensive vacation or giving pricey gifts (especially if a new significant other is involved)
- Gambling or wasting money on luxury items
- Giving items to family and friends (possibly to hold until after the divorce)
- Selling property for significantly less than its value
Certainly, both spouses have to spend money as they go through the divorce process and they may incur legitimate expenses, such as paying for separate places to live. However, particularly large expenditures will be scrutinized.
Spouses need to watch their joint accounts and credit cards for unusual activity leading up to and during divorce. Placing alerts on them for any transaction over a specified amount can help. New York law also allows people to obtain court orders to prevent such activity.
It is wise to retain a skilled attorney who can uncover dissipation of assets as early as possible and collect solid evidence to present to the court. If a spouse is found to have wastefully dissipated assets, the judge can use the equitable distribution law to correct the problem. For example, the innocent spouse may be awarded more assets to make up for what was taken.
The Law Office of Maurice J. Verrillo, P.C. in Rochester diligently protects the property rights of divorce litigants throughout Western New York State. Call 585-563-1134 or contact us online to schedule a consultation.
August 28, 2026 Posted in Family Law Tagged assets, divorce, equitable distribution Comments Off on How Dissipation of Assets Affects Equitable Distribution in New York
