Marital asset waste, the careless or deliberate depletion of shared resources, can lead to significant financial strain in a marriage.
Recognizing the signs of asset waste helps to protect the financial well-being of both spouses. During your divorce, look for the following signs.
1. Unexplained expenses
Keep an eye out for unexplained or unusual expenses that seem disproportionate to your normal spending patterns. Sudden large withdrawals, extravagant purchases or secret accounts might indicate asset waste.
2. Frequent financial secrecy
If your partner becomes secretive about their financial activities, it could be a warning sign. When one spouse hides financial decisions, it might be an attempt to mask asset waste.
3. Unilateral selling of assets
Selling valuable assets without consulting or involving the other spouse can be a clear sign of asset waste. Shared assets should ideally be a collaborative effort, with both parties making informed decisions.
4. Excessive gambling or substance abuse
Unchecked gambling habits or substance abuse can rapidly deplete marital assets. These behaviors can lead to financial strain and even bankruptcy if not addressed promptly.
5. Drastic lifestyle changes
Sudden, drastic lifestyle changes, such as moving to a more expensive home or taking on excessive debt, can be indicators of hidden asset waste. Transparency in financial decisions is vital for a healthy marriage.
Although you may have wanted your marriage to last, around 689,308 divorces happen each year. Since Texas is an equitable distribution state, any financial misconduct may lead to an unfair resolution and starting a new life under shaky financial circumstances.