In terms of family law, what does "dissipation of assets" refer to?

Dissipation of assets refers specifically to the spending or wasting of marital assets by one spouse, particularly in the context of divorce proceedings. This concept recognizes that when one party in a marriage uses joint or marital resources for inessential expenses or to satisfy personal desires, it can undermine the fair distribution of marital property.

For example, if one spouse spends a significant amount on gambling, luxury items, or extravagant vacations after the decision to divorce or while the divorce is pending, this could be classified as dissipation of assets. Courts generally seek to address this behavior to ensure an equitable division of property during divorce settlements, potentially requiring reimbursement or accounting for the dissipated assets.

The other options represent related but distinct concepts. Fair division of property pertains to how marital assets are divided equitably, which is not the same as dissipating them. Hiding assets during a divorce involves concealing property to prevent the other spouse from claiming it, which is a separate act of dishonesty. Accumulation of debt by one spouse refers to the incurring of financial obligations that may affect the marital estate’s value but does not specifically address the misallocation of already existing marital assets.