The most challenging and time consuming portion of any divorce proceeding, is sorting through the finances. Dissipation and contribution are often an overlooked component when analyzing marital finances because both concepts deal with money that has already been spent. The key difference between the two (2) concepts lies in how the money was spent.
When one spouse uses marital resources for non-marital purposes, it is likely they have “dissipated” the marital estate. If a dissipation has occurred, then the spouse who has caused the dissipation must reimburse the marital estate for this improper expenditure. Examples of typical dissipation are:
Examples of things unlikely to be considered dissipation:
A contribution, on the other hand, occurs when one spouse uses non-marital funds to contribute to a marital expense. When a contribution has occurred then the contributing party is entitled to reimbursement from the marital estate. Examples of typical contributions are:
The key fact to differentiate dissipation from contribution is: when a dissipation has occurred the dissipating spouse owes the marital estate money; when a contribution has occurred the marital estate owes the contributing spouse money. If you suspect a dissipation has occurred, or you feel you are entitled to reimbursement from a contribution you made to the marital estate, you should contact an attorney for advice.
This article was submitted by O'Flaherty Law attorney Sean Sullivan.
For Further Divorce & Family Law Reading
Illinois Law Blog: Learn About Law
O’Flaherty Law is based in Downers Grove, Elmhurst, and Naperville, Illinois. Our team has expertise in many areas of law including but not limited to bankruptcy law, business & corporate representation, civil litigation, criminal defense, estate planning, divorce & family law, immigration; probate, guardianship & elder law; and real estate law. If you have any questions or would like to schedule a free consultation, please e-mail us at email@example.com or call us at (630)324-6666.
Where You Can Read Us
O'Flaherty Law has experience in legal services in the following legal practice areas: estate planning and probate; featuring wills and trusts, powers of attorney, living wills, estate tax avoidance and probate practice; real estate law; featuring commercial and residential sales and leases, foreclosure defense, short sales, REO closings and consent foreclosures, mechanic's liens and landlord and tenant disputes; family law; featuring divorces, child custody, child support, paternity, adoption and orders of protection; criminal law; featuring DUI, traffic and criminal defense; business representation; featuring entity selection, incorporation and s-corp election, bylaws and operating agreements, annual reports, annual meetings of shareholders, employment agreements, handbooks and warning and termination letters, business contracts, independent contractor agreements, trademarks and copyrights, regulation and licensing compliance and dissolution and mergers; business and personal bankruptcy; featuring Chapter 7, Chapter 11 and Chapter 13 cases; litigation; featuring commercial contract and tort law, employment and labor law, personal injury and collections; and immigration law.
Located in Downers Grove, Illinois, O'Flaherty Law serves DuPage County, Will County, Cook County, Kendall County, Kane County and McHenry County in Illinois, as well as the following cities: Wheaton, Naperville, Woodridge, Downers Grove, Darien, Willowbrook, Westmont, Lisle, Oak Brook, Warrenville, Glen Ellyn, Aurora, North Aurora, Batavia, Geneva, St. Charles, Lemont, Joliet, Bolingbrook, Plainfield, Crest Hill, Lake Forest, Lake Bluff, Northbrook, Highland Park and Chicago.
© 2015 by O'Flaherty Law. All rights reserved.