Court Case Addresses Dissipation of Assets and Unequal Distribution of the Marital Estate

In most cases, the Pennsylvania family law courts will divide the marital estate 50/50. However, there are some cases in which the court will favor one party over the other. The dissipation of assets, or intentionally spending money or selling assets from the marital estate to prevent your former spouse from getting their fair share of the marital estate, is one such situation. The courts recognize this as an abuse of the divorce process and punish it accordingly. In this article, we’ll take a look at a recent Pennsylvania family law case in which the dissipation of marital assets played a key role.

Background of the case

The case of Dolinar v. Kapton, 80 Pa. D. & C.4th 156 (Com. Pl. 2006) addressed the dissipation of assets from the marital estate. It is a valuable example of how courts deal with one spouse who intentionally tries to prevent the other spouse from a fair distribution. Dissipation means the depleting or wasting of marital assets by one spouse in anticipation of divorce. Such actions, even if they’re unintentional, can lead to one spouse being held accountable for the decreased value of the marital estate.

In the Dolinar case, the husband and wife were involved in a limousine business. After the couple separated, the husband stored the business’s vehicles outdoors. Storing the vehicles outdoors caused them to rust, thus diminishing their value.

The Allegheny County Court of Common Pleas found that the husband’s actions (storing the vehicles outdoors) led to rusting and constituted the dissipation of marital assets. The court held the husband accountable for this mistake to the tune of $50,000, or the value of the vehicles.

Understanding the significance of the case

In the Dolinar case, the court ruled that the dissipation of marital assets is not limited to intentional misconduct or illegal activities. Instead, it can also address actions that lead to the reduction in value of the marital estate, even if those actions were merely negligent.

Ultimately, the court decided that each spouse has a responsibility to preserve assets held within the marital estate and can be held accountable for conduct that results in a decline of their value.

Under Pennsylvania’s Divorce Code, the dissipation of marital assets is an element that the courts consider when they divide marital assets during equitable distribution. If a spouse dissipates the marital estate, they can receive a reduced share during equitable distribution to offset the impact of their actions in reducing the total value of the marital estate.

Key takeaway

It’s important to act quickly when you realize your spouse has dissipated assets and reduced the value of the marital estate. If you don’t, the court can consider your lack of action as condoning the conduct. If the court believes that you’ve condoned the spending, it may not award you a greater share of the marital estate.

Talk to a Philadelphia, PA, Family Law Attorney Today

The Law Offices of Lauren H. Kane represent the interests of Philadelphia residents who are pursuing a divorce. Call our Philadelphia family lawyers today to schedule an appointment, and we can begin discussing your next steps right away.