In Wisconsin, marital waste, often referred to as the wasteful dissipation of a marital asset, occurs when one spouse intentionally misuses, squanders, or destroys marital property. This misconduct typically happens during the marriage, especially as a divorce becomes imminent or during the divorce proceedings, and it can significantly impact how marital assets are divided by a court.
Understanding Marital Waste in Wisconsin Divorce
Wisconsin is an equitable distribution state, meaning that marital property is divided fairly, though not necessarily equally, between divorcing spouses. When a court determines property division, it considers various factors, and one spouse's financial misconduct or dissipation of assets can be a critical element. The core of marital waste lies in the intentional and unjustifiable depletion of shared resources for purposes unrelated to the marriage or against the other spouse's interests.
It's important to distinguish between legitimate marital expenses or a spouse's simple mismanagement of finances and actual marital waste. The key lies in the intent and the nature of the spending or actions.
Examples of Marital Waste
Recognizing marital waste can be crucial for an equitable divorce settlement. Here are common examples:
- Excessive Gambling Losses: Significant amounts of marital funds lost in gambling activities without the other spouse's knowledge or consent.
- Lavish Spending on Non-Marital Relationships: Using marital assets to support a new romantic partner, including expensive gifts, travel, or living expenses.
- Concealment or Transfer of Assets: Hiding money in secret accounts, transferring property to friends or family without fair value, or deliberately undervaluing assets to reduce the marital estate.
- Unnecessary or Reckless Debt Accumulation: Incurring substantial debt for personal, non-marital pursuits (e.g., funding a drug or alcohol addiction, excessive spending on hobbies) that diminishes the marital estate.
- Destruction of Property: Intentionally damaging or destroying marital assets like a car, home, or valuable possessions.
- Unjustifiable Legal or Professional Fees: Spending excessive marital funds on legal fees for non-marital matters, or on professionals for purposes detrimental to the marital estate.
Proving Marital Waste in Wisconsin
To successfully argue marital waste in a Wisconsin divorce, the complaining spouse typically needs to demonstrate:
- Intentional Misuse: The spouse acted with the specific intent to deplete or devalue marital assets.
- Unjustifiable Purpose: The spending or action was for a non-marital purpose, or it was excessive and unreasonable given the couple's financial circumstances.
- Timing: The waste usually occurs when the marriage is irretrievably broken, or divorce is imminent, though it can occur earlier if concealed.
- Impact on Marital Estate: The actions resulted in a significant reduction of the marital property that would otherwise be available for division.
Evidence like bank statements, credit card bills, property records, and testimony can be used to prove dissipation.
Impact on Property Division
When marital waste is proven, a Wisconsin court has the discretion to adjust the property division to compensate the injured spouse. While Wisconsin law generally presumes an equal division of marital property, the court can deviate from this presumption based on various factors, including financial misconduct.
The goal is to ensure that the spouse who wasted assets does not benefit from their actions, and the other spouse receives a fair share of what the marital estate would have been without the dissipation. This might involve:
- Awarding a larger share of the remaining marital assets to the aggrieved spouse.
- Assigning responsibility for debts incurred due to waste solely to the spouse who incurred them.
| Scenario | Example of Marital Waste | Potential Impact on Division |
|---|---|---|
| Gambling | Secretly losing $50,000 of marital savings at a casino. | The spouse who lost the money might receive $50,000 less from other assets or be ordered to reimburse the estate. |
| New Relationship | Spending $20,000 on gifts and trips for a new partner. | The $20,000 may be added back to the wasting spouse's share of the marital estate for division purposes. |
| Asset Destruction | Intentionally damaging a marital vehicle worth $10,000. | The value of the damaged vehicle might be charged against the share of the spouse who caused the damage. |
| Excessive Debt | Accumulating $15,000 in credit card debt for personal, non-marital luxuries. | The court may assign the full $15,000 debt solely to the spouse who incurred it. |
Remedies for Marital Waste
In Wisconsin, courts have broad authority to ensure an equitable distribution of property. If marital waste is established, a judge may implement remedies such as:
- Reimbursement: Ordering the wasting spouse to "reimburse" the marital estate for the dissipated funds.
- Offset: Reducing the wasting spouse's share of other marital assets by the amount of the waste.
- Allocation of Debt: Assigning specific debts directly to the spouse who created them through wasteful actions.
These remedies are designed to restore the financial balance that was upset by the dissipation of assets.
Seeking Legal Guidance
Navigating claims of marital waste can be complex and requires thorough documentation and a strong legal argument. If you suspect marital waste in your Wisconsin divorce, it is advisable to consult with an experienced family law attorney. A lawyer can help identify potential waste, gather necessary evidence, and advocate for an equitable outcome in court.
