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Casino chips and shredded credit cards representing asset dissipation
Asset Protection & Litigation

Stop the Bleeding.
Protect Your Net Worth.

Is your ex gambling, buying luxury cars, or transferring cash to relatives before the trial? Learn how to get a 'Preservation Order' and claim 'Unequal Division' for reckless spending.

Deepa Tailor, Senior Family Lawyer
February 5, 2026
7 Min Read
Legal Review: This asset protection guide was reviewed by Deepa Tailor, Senior Family Lawyer, to ensure compliance with Section 5(6) of the Ontario Family Law Act regarding Unequal Division of Net Family Property (2026).

Too Busy to Read? The 30-Second Answer

The Definition: "Dissipation" is the reckless depletion of family assets by one spouse to the detriment of the other. It goes beyond normal living expenses.
The Examples: Excessive gambling, gifts to a new partner, high-risk stock trading, or selling assets for pennies.
The Remedy: The Court can order an "Unequal Division" of property.
The Math: If your spouse wasted $100,000 on gambling, the Court can act as if they still have that money, deducting it from their share of the settlement so you don't bear the loss.

Red Flags: Is It 'Living Expenses' or 'Waste'?

Not every expense is dissipation. Buying groceries is fine. These actions are not:

The Casino Run

Large cash withdrawals at casinos or online betting sites.

The 'Gift'

Transferring large sums to parents or siblings (claiming it's repayment of a 'loan' that never existed).

The Fire Sale

Selling the cottage or car for way below market value just to liquidate cash.

The New Lifestyle

Buying expensive jewelry or vacations for a new girlfriend/boyfriend using joint funds.

How to Stop the Spending NOW

1

The Preservation Letter

Your lawyer sends a formal notice demanding they stop depleting assets immediately. This sets the timeline for future claims.

2

The Non-Dissipation Order

We file a Motion (sometimes Ex Parte/Urgent) to freeze bank accounts or prevent the sale of property.

3

The Notice to Third Parties

We register a 'Certificate of Pending Litigation' (CPL) on the home so they cannot sell or mortgage it behind your back.

Reckless vs. Unfortunate

Reckless Depletion (Punished)

Scenario:

Husband takes $50k from the line of credit and loses it on sports betting.

Result:

Court treats that $50k as part of HIS share. Wife loses nothing.

Bad Investments (Shared)

Scenario:

Wife invests $50k in a stock she genuinely thought would go up, but the market crashes.

Result:

Courts usually treat this as a shared loss. Poor business judgment is not the same as malicious waste, unless it was wildly speculative.

Spending Myths

The Myth: "I Can Spend Half"

"The joint account has $100k. I own half, so I can spend $50k on whatever I want."

The Reality: "The Trust"

Until Equalization is finalized, you have a fiduciary duty to preserve the asset pool. Spending 'your half' frivolously can still trigger an Unequal Division claim.

Common Questions About Asset Waste

Freeze the Assets Before It's Too Late.

Once the money is spent, it is harder to collect. Acting fast to secure a Preservation Order is your best defense.

Book Your Asset Protection Session
Deepa Tailor

Deepa Tailor, Senior Family Lawyer

Deepa Tailor is the founder of Tailor Law. She specializes in high-conflict property disputes, helping clients secure freezing orders and prove dissipation of family assets.

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