Dissipation of Marital Assets in Illinois: Proving Your Spouse Wasted Money

Your spouse just bought a $45,000 "investment" in cryptocurrency—right after you filed for divorce. Or maybe they've been hemorrhaging cash at the casino for months. Perhaps you discovered $80,000 in credit card charges for hotels, gifts, and dinners that definitely weren't for family vacations. Now you're wondering: can I get that money back in the divorce?

The answer is often yes—but only if you understand Illinois's dissipation laws and can prove your case. After handling hundreds of high-asset divorce cases, I've seen spouses try every trick imaginable to waste marital funds before division. I've also seen too many people lose legitimate dissipation claims because they didn't understand the evidence requirements or missed critical deadlines.

This guide will give you everything you need to know about dissipation of marital assets in Illinois: what qualifies, how to prove it, the lookback periods, and most importantly, how to recover those wasted funds in your divorce settlement.

Understanding Dissipation Under Illinois Law

Dissipation isn't just about wasteful spending—it's a specific legal concept with precise requirements under Illinois law. The Illinois Marriage and Dissolution of Marriage Act (750 ILCS 5/503(d)(2)) defines dissipation as the use of marital property for purposes unrelated to the marriage at a time when the marriage is undergoing an irretrievable breakdown.

That definition contains three critical elements, and missing any one of them means your dissipation claim fails:

Element 1: Marital Property Must Be Used

Only marital assets can be dissipated. If your spouse burns through their separate property—inheritance they kept separate, or assets they owned before marriage—that's not dissipation under Illinois law. This is why proper asset tracing and classification matters so much in divorce. The funds spent must be marital funds, period.

Element 2: The Spending Must Be Unrelated to the Marriage

This is where most cases are won or lost. Normal living expenses, even excessive ones, typically aren't dissipation. Your spouse's $500 monthly golf habit? Probably not dissipation—especially if they've done it throughout the marriage. But funding a secret apartment for an affair partner? That's classic dissipation because it serves no marital purpose.

Element 3: The Marriage Must Be Irretrievably Broken

Illinois courts look at when the marriage broke down, not when you filed for divorce. If your spouse gambled away $50,000 three years ago when you were still working on the marriage, that might not qualify. But if they did it after you separated or after discovering the affair? Much stronger case.

The Lookback Period: When Does the Clock Start?

Illinois courts use a "lookback period" to determine how far back they'll examine spending for dissipation. This is crucial because your spouse might have been wasting money for years before you filed for divorce.

Determining the Breakdown Date

The lookback period starts when the marriage began its irretrievable breakdown. This isn't always the filing date—it could be earlier. Courts consider factors like:

• When the affair began (if applicable)
• When you physically separated
• When you or your spouse consulted a divorce attorney
• When one spouse moved out
• Any significant event marking the end of the marriage

In In re Marriage of O'Neill, the Illinois Appellate Court found that the breakdown began when the husband moved out, not when the divorce was filed months later. This extended the lookback period significantly, allowing the wife to recover thousands in dissipated assets.

How Far Back Can You Go?

Illinois doesn't have a statutory limit on the lookback period, but courts typically examine the three to five years before filing. However, if you can show the breakdown started earlier, you can potentially look back further. Conversely, if the breakdown was recent, a shorter period applies.

The Statute of Limitations Trap

Here's where many people lose their cases: you must raise dissipation claims properly and timely. Under Illinois Supreme Court Rule 218(c), you must specifically identify dissipation claims in your financial disclosures. Miss this deadline, and the court may bar your claim entirely.

What Qualifies as Dissipation: Real-World Examples

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Theory is nice, but you need to know what actually qualifies as dissipation in Illinois courtrooms. Let me walk you through the most common scenarios I've encountered in practice.

Affair-Related Expenses

This is the most clear-cut category. When your spouse spends marital money on an affair partner, it's almost always dissipation. This includes:

• Hotel rooms and travel with the affair partner
• Gifts, jewelry, clothing for the other person
• Rent for a "love nest" apartment
• Restaurant bills, entertainment expenses
• Cash gifts or "loans" to the affair partner

In one case I handled, a husband had purchased a $30,000 engagement ring for his girlfriend—while still married. The court found this was unquestionably dissipation and credited the wife with the full amount in the property division.

Gambling Losses

Gambling is one of the most frequently litigated dissipation issues. The key question is whether gambling was an established pattern during the marriage or became excessive during the breakdown.

If your spouse has always been a casual gambler and continued at similar levels, courts might not find dissipation—even if you think it's wasteful. But if gambling suddenly increased dramatically or started after separation, that's strong evidence of dissipation.

In In re Marriage of Partyka, the Illinois Appellate Court found that a husband's gambling losses of over $100,000 constituted dissipation because the spending was excessive and occurred after the marriage began breaking down.

Substance Abuse Spending

Money spent on drugs or excessive alcohol can qualify as dissipation, particularly when the abuse accelerated during the breakdown period. Courts look at:

• Total amounts spent
• Whether the spending pattern changed during the breakdown
• Impact on marital finances
• Whether the spouse refused treatment

Business Expenses and "Investments"

This category requires careful analysis. Legitimate business expenses generally aren't dissipation—but funding a failing business, paying inflated salaries to family members, or making risky investments designed to deplete assets can qualify.

I've seen spouses "invest" heavily in clearly doomed business ventures right before divorce, or suddenly triple their business expense accounts. When the spending serves no legitimate purpose and appears designed to waste assets, courts will find dissipation.

If you suspect your spouse has gone beyond wasteful spending to actually hiding assets through business transactions, you may have a fraudulent conveyance claim, which carries additional legal remedies.

Cryptocurrency and Digital Asset Transfers

Modern dissipation often involves cryptocurrency and protecting digital assets. A spouse might convert marital funds to Bitcoin, then claim it "lost value" or they "can't access the wallet anymore." This requires specialized investigation.

As someone with both legal and cybersecurity expertise, I've traced cryptocurrency transactions in divorce cases that revealed deliberate asset depletion disguised as investment losses. Blockchain forensics can often prove exactly where the money went.

The Burden of Proof: What You Need to Win

Understanding who has to prove what—and to what standard—is essential for dissipation claims. Illinois uses a burden-shifting approach that many people misunderstand.

Your Initial Burden: The Prima Facie Case

As the spouse claiming dissipation, you must first establish a "prima facie case." This means showing:

1. When the irretrievable breakdown occurred
2. That marital property was used
3. The amount of the alleged dissipation

You don't have to prove at this stage that the spending was improper—just that significant marital funds were spent after the breakdown began. Bank statements, credit card records, and financial documentation typically establish this.

The Burden Shifts: Your Spouse Must Explain

Once you've established the prima facie case, the burden shifts to your spouse. They must prove, by clear and convincing evidence, that the expenditures were for legitimate purposes. This is a high standard—they can't just say "I needed the money." They must document and justify every dollar.

In In re Marriage of Tietz, the court found dissipation when the husband couldn't adequately explain $40,000 in cash withdrawals. He claimed the money went to "living expenses" but couldn't produce receipts, canceled checks, or any documentation. The court credited the wife with the full amount.

Clear and Convincing Evidence Standard

The "clear and convincing" standard requires more than just a preponderance of the evidence—your spouse must provide substantial proof that the spending served marital purposes. Vague explanations, missing documentation, or implausible stories will fail this standard.

Evidence Gathering: Building Your Dissipation Case

A dissipation claim is only as strong as your evidence. Here's exactly what you need and how to get it.

Financial Documents to Collect

Start gathering these documents immediately—preferably before you file for divorce:

• Bank statements: All joint and individual accounts, at least 3-5 years back
• Credit card statements: Every card either spouse has access to
• Investment account statements: Brokerage accounts, retirement accounts, cryptocurrency exchanges
• Business records: If your spouse owns a business, you need P&L statements, expense reports, and check registers
• Tax returns: At least 3-5 years, including all schedules
• Loan documents: Any loans taken against marital property
• Real estate records: Deeds, mortgages, refinancing documents

Digital Evidence

In modern dissipation cases, digital evidence often tells the story:

• Venmo/PayPal/Zelle records: These apps track every transfer
• Email receipts: Online shopping, travel bookings, subscription services
• Phone records: Call logs and text messages can reveal affair partners and hidden spending
• Social media: Posts showing expensive trips, purchases, or lifestyle inconsistent with claimed finances
• Cloud storage: Shared accounts often contain financial documents

Using Discovery Effectively

Once your case is filed, formal discovery becomes your most powerful tool. You can:

• Subpoena bank records directly from financial institutions
• Depose your spouse under oath about specific expenditures
• Request production of documents including digital records
• Send interrogatories requiring written explanations of spending

The key is asking specific questions. Don't just ask about "spending"—ask about specific transactions you've identified. "Explain the $5,347 charge at the Ritz-Carlton on March 15, 2024" forces a specific answer.

Expert Witnesses

In complex dissipation cases, you may need expert testimony:

• Forensic accountants: Can trace funds, analyze business records, and quantify dissipation
• Digital forensics experts: Can recover deleted data and trace cryptocurrency transactions
• Business valuation experts: Can identify suspicious business transactions

How Courts Recover Dissipated Assets

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Finding dissipation is one thing—getting the money back is another. Here's how Illinois courts actually handle recovery.

The Credit Method

The most common remedy is the "credit method." The court calculates the dissipated amount and then gives you credit for your share in the property division. Here's how it works:

Suppose your marital estate is worth $500,000 and you'd normally each get $250,000 (50/50 split). Your spouse dissipated $100,000 on their affair. The court might:

1. Add the $100,000 back to the marital estate for calculation purposes (now $600,000)
2. Divide the theoretical estate 50/50 ($300,000 each)
3. Since the dissipated funds are gone, you get $300,000 from remaining assets
4. Your spouse gets only $200,000

Effectively, your spouse "repays" you from their share of the marital estate.

When There's Not Enough Left

What happens if the dissipation exceeds your spouse's share of the remaining estate? Courts have options:

• Award you more than 50% of remaining assets
• Order your spouse to pay a monetary judgment over time
• Award you specific assets (the house, retirement accounts) to offset dissipation
• Factor dissipation into maintenance (alimony) calculations

Dissipation and Debt Allocation

If your spouse ran up debt while dissipating assets—credit cards maxed out on an affair, for example—the court will typically assign that debt entirely to them. You shouldn't have to pay for your spouse's misconduct.

Common Defenses to Dissipation Claims—And How to Beat Them

Your spouse will fight back against dissipation claims. Here are the most common defenses and how to overcome them.

"The Marriage Wasn't Broken Down Yet"

Your spouse may argue that spending occurred before the irretrievable breakdown. Counter this by documenting exactly when the breakdown began. Evidence of affairs, separation discussions, divorce attorney consultations, or your spouse's own statements all help establish the timeline.

"I Needed It for Living Expenses"

This defense works for legitimate expenses but fails for excessive or unexplained spending. Counter by:

• Comparing spending to historical patterns
• Showing the spending far exceeded reasonable needs
• Demanding documentation for every claimed expense
• Pointing out spending that couldn't possibly be "living expenses" (jewelry, travel, gifts)

"You Consented to the Spending"

If you knew about and approved the spending, it may not be dissipation. This is why affair-related expenses are so clearly dissipation—you obviously didn't consent to funding your spouse's extramarital relationship. For other spending, your spouse must prove actual consent, not just that you didn't object.

"The Business Required It"

Business owners often claim excessive spending was "business related." Overcome this by:

• Comparing business expenses to prior years
• Examining whether the expenses were truly necessary
• Looking for personal expenses disguised as business expenses
• Hiring a forensic accountant to analyze the books

"I Can't Remember Where the Money Went"

This isn't a defense—it's an admission. When your spouse can't explain expenditures, the court presumes dissipation. Make sure to hold them to the clear and convincing evidence standard.

Case Study: The Hidden Cryptocurrency Dissipation

Let me share a scenario that illustrates modern dissipation tactics and how to combat them.

A client came to me after discovering her husband had "lost" over $200,000 in cryptocurrency investments. He claimed the investments simply lost value—unfortunate but not dissipation. However, something didn't add up.

Using blockchain analysis tools and subpoenas to cryptocurrency exchanges, we traced the actual transactions. The husband hadn't lost money to market volatility—he had transferred Bitcoin to a wallet controlled by his girlfriend, then converted it to cash. The "losses" were actually deliberate transfers.

We established:

1. The breakdown date: when he began the affair (18 months before filing)
2. The amount: $212,000 in cryptocurrency transfers
3. The purpose: funding his affair partner's "business" and lifestyle

The court found dissipation and credited our client with her share of the full $212,000. Because the husband had already depleted significant marital assets, she received 65% of the remaining estate plus a $50,000 judgment to be paid over five years.

This case illustrates why both legal and technical expertise matters in modern divorce cases. Without the ability to trace cryptocurrency transactions, the dissipation might never have been discovered.

Protecting Yourself From Dissipation

If you're concerned your spouse might dissipate assets, take protective action immediately.

Before Filing for Divorce

• Copy all financial documents—statements, tax returns, business records
• Monitor accounts for unusual activity
• Document your spouse's spending patterns
• Screenshot digital records that might disappear
• Consult with an attorney about protective measures

Immediately Upon Filing

Ask your attorney about:

• Preliminary injunctions: Court orders preventing asset transfers
• Account freezes: Restrictions on accessing certain accounts
• Temporary restraining orders: Emergency protection against imminent dissipation

Ongoing Monitoring

During the divorce process:

• Review all financial disclosures carefully
• Use discovery to investigate suspicious transactions
• Report potential dissipation to your attorney immediately
• Keep detailed records of your own spending (to avoid counterclaims)

Frequently Asked Questions About Dissipation of Assets

What is dissipation of marital assets?

Dissipation of marital assets occurs when one spouse uses marital property for purposes unrelated to the marriage during a time when the marriage is undergoing an irretrievable breakdown. Under Illinois law (750 ILCS 5/503(d)(2)), this typically means spending marital funds on things like affairs, gambling, excessive personal expenses, or other non-marital purposes after the marriage has begun to fail. The key distinction from ordinary "wasteful" spending is that dissipation specifically involves using marital funds for purposes that don't benefit the marriage at a time when the couple is no longer functioning as a partnership.

How do I prove dissipation in Illinois?

Proving dissipation in Illinois is a two-step process. First, you must establish a prima facie case by showing: (1) when the marriage began its irretrievable breakdown, (2) that marital property was used, and (3) the amount allegedly dissipated. Once you establish this, the burden shifts to your spouse to prove by clear and convincing evidence that the expenditures were for legitimate marital purposes. You'll need documentation including bank statements, credit card records, receipts, and any evidence showing where the money actually went. If your spouse cannot adequately explain and document the spending, the court will find dissipation.

What is the lookback period for dissipation?

Illinois doesn't have a fixed statutory lookback period for dissipation claims. Instead, courts examine spending that occurred after the marriage began its irretrievable breakdown. This date varies depending on the specific circumstances of your case—it could be when an affair started, when you separated, or when one spouse consulted a divorce attorney. In practice, courts typically examine three to five years of financial records before filing, but the actual lookback period depends on proving when your marriage actually broke down. Establishing this date is critical to determining how much spending can potentially be recovered.

Is spending on an affair dissipation?

Yes, spending on an affair is one of the clearest examples of dissipation in Illinois divorce cases. When marital funds are used for hotel rooms, gifts, travel, meals, or any other expenses related to an extramarital relationship, courts consistently find dissipation. The logic is straightforward: spending on an affair serves no legitimate marital purpose and occurs when the marriage is obviously broken down. Illinois courts have found dissipation for affair-related expenses ranging from restaurant meals to cars and real estate purchased for affair partners. Documentation of the affair and related spending is key to recovering these funds.

Can gambling losses be dissipation?

Gambling losses can be dissipation, but not always. The key factor is whether the gambling pattern changed during the marriage breakdown or was consistent throughout the marriage. If your spouse has always been a recreational gambler at similar levels, courts may not find dissipation—they'll view it as an established spending pattern you accepted during the marriage. However, if gambling suddenly increased dramatically during the breakdown period, or your spouse developed a gambling problem while the marriage was failing, courts will likely find dissipation. The Illinois Appellate Court in In re Marriage of Partyka found dissipation when a husband's gambling losses exceeded $100,000 and the pattern changed during the breakdown period.

What evidence do I need to prove dissipation?

To prove dissipation, you'll need comprehensive financial documentation including: bank statements (all accounts, joint and individual, going back 3-5 years), credit card statements, investment account records, tax returns, business records if applicable, receipts and canceled checks, and any digital evidence such as Venmo/PayPal records, email receipts, or social media posts showing spending. You'll also need evidence establishing when your marriage broke down—communications, separation evidence, or testimony. In complex cases, you may need expert witnesses like forensic accountants or digital forensics specialists. The more specific your documentation of individual transactions, the stronger your case.

How are dissipated assets recovered in divorce?

Illinois courts typically recover dissipated assets using the "credit method." The court calculates the total dissipation amount and adds it back to the marital estate for division purposes. Then the court allocates remaining assets to compensate the non-dissipating spouse for their share of the wasted money. For example, if $100,000 was dissipated and you'd normally get 50%, you receive credit for $50,000 through a larger share of remaining assets. If there aren't enough remaining assets, the court may order a monetary judgment against your spouse, assign marital debts entirely to them, or factor dissipation into maintenance (alimony) calculations.

Is spending on drugs or alcohol dissipation?

Spending on drugs or excessive alcohol can constitute dissipation, particularly when the substance abuse began or escalated during the marriage breakdown. Courts examine factors including the total amounts spent, whether spending patterns changed during the breakdown period, the impact on marital finances, and whether the spouse refused treatment. If your spouse's substance abuse depleted significant marital funds during the breakdown period, you have a strong dissipation claim. However, if the substance use was consistent throughout the marriage at similar levels, courts may be less likely to find dissipation. Documentation of the spending and the timing is critical.

Can business expenses be dissipation?

Yes, business expenses can be dissipation when they're not legitimate business needs. Common examples include paying inflated salaries to family members or affair partners, funding obviously failing business ventures, running personal expenses through the business, or making irrational "investments" designed to deplete marital assets. However, legitimate business expenses—even aggressive ones—generally aren't dissipation if they served real business purposes. Proving business-related dissipation typically requires digital forensics services analysis comparing current spending to historical patterns and industry norms. Courts look for evidence that the spending served no genuine business purpose and was designed to waste marital assets.

What is the burden of proof for dissipation?

The burden of proof for dissipation in Illinois involves burden-shifting. Initially, the spouse claiming dissipation must establish a prima facie case by showing when the breakdown occurred, that marital funds were used, and the amount involved. This burden is relatively light—you just need to show significant spending occurred during the breakdown period. Once you meet this burden, the other spouse must prove by clear and convincing evidence (a high standard) that each expenditure served a legitimate marital purpose. They must document and justify every dollar spent. If they cannot provide clear and convincing evidence of legitimate purposes, the court will find dissipation. "I don't remember" or "I paid cash" typically fails this standard.

Next Steps: Taking Action on Your Dissipation Claim

If you suspect your spouse has dissipated marital assets—or is actively doing so—time is critical. Here's your action plan:

Immediate Actions (Do Today)

1. Document everything: Copy all financial statements, tax returns, and records you can access
2. Screenshot digital evidence: Bank apps, Venmo, PayPal, cryptocurrency accounts
3. Create a timeline: Write down when you believe the marriage broke down and why
4. List suspicious transactions: Note any spending that seems unusual or unexplained

This Week

1. Consult with an attorney: You need legal advice specific to your situation
2. Discuss protective measures: Temporary restraining orders, account freezes, preliminary injunctions
3. Evaluate expert needs: Forensic accountants, digital forensics specialists

Moving Forward

1. File your dissipation claim properly: Follow Illinois Supreme Court Rule 218(c) requirements
2. Use discovery aggressively: Subpoenas, interrogatories, depositions
3. Hold your spouse accountable: Every dollar must be explained and documented

Dissipation claims can significantly impact your divorce outcome—but only if you act quickly, gather evidence properly, and present your case effectively. If you're dealing with a high-asset divorce where significant funds may have been wasted, consulting with an attorney who understands both the legal requirements and the forensic tools available is essential.

The money your spouse wasted was half yours. With the right approach, you can get it back.