In marriage and divorce, it is common that one spouse accuses the other of improperly using or hiding marital property – either through dissipation or diversion. While it is often suspected, it is sometimes true. These issues can significantly affect how assets are divided and may influence court decisions about fairness and accountability. It is important to understand how marital assets can be identified and managed for a fair settlement. 

Dissipated Assets refer to marital funds or property that one spouse has spent for purposes unrelated to the marriage.  Tracing these assets involves reviewing financial records, spending patterns, and depletion of marital funds leading up to the divorce. 

Diverted Assets, on the other hand, are typically hidden intentionally. They might be transferred to accounts in relatives’ names or overseas accounts to avoid division. Detecting these involves a thorough analysis of financial statements, unusual transactions, and the lifestyle maintained by both parties versus reported income. 

In situations where dissipation or diversion of marital assets is suspected, a forensic accountant can be invaluable in tracing these assets. They can provide insight into complex financial trails, ensuring that all marital property is accurately accounted for and equitably divided.