What Is Dissipation of Marital Assets in New York?

Dissipation of marital assets occurs when one spouse wastes, transfers, conceals, or improperly spends marital property for a purpose unrelated to the marriage. Common examples include excessive gambling, funding an extramarital affair, transferring money to relatives, selling property below market value, or making unusual withdrawals in anticipation of divorce.

Ordinary household expenses and legitimate marital debts generally do not constitute dissipation. In New York, courts may consider the wasteful dissipation of marital property when determining equitable distribution under Domestic Relations Law § 236(B)(5). If dissipation is proven, the court may award the innocent spouse a larger share of the remaining assets or a credit representing the money that was wasted.