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.
Not every expense is dissipation. Buying groceries is fine. These actions are not:
Large cash withdrawals at casinos or online betting sites.
Transferring large sums to parents or siblings (claiming it's repayment of a 'loan' that never existed).
Selling the cottage or car for way below market value just to liquidate cash.
Buying expensive jewelry or vacations for a new girlfriend/boyfriend using joint funds.
Your lawyer sends a formal notice demanding they stop depleting assets immediately. This creates a written record of when they were put on notice.
We file a Motion (sometimes Ex Parte/Urgent) to freeze bank accounts or prevent the sale of property.
Neither spouse can sell or mortgage the matrimonial home without the other’s consent or a court order (Family Law Act, s. 21(1)). For other real estate, we can ask the court for a ‘Certificate of Pending Litigation’ (CPL) where an interest in the land is in question (Courts of Justice Act, s. 103).
Husband takes $50k from the line of credit and loses it on sports betting.
The court can adjust the equalization payment to account for the $50k if an equal split would be unconscionable (Family Law Act, s. 5(6)(d)). The outcome depends on the facts.
Wife invests $50k in a stock she genuinely thought would go up, but the market crashes.
Courts usually treat this as a shared loss. Poor business judgment is not the same as malicious waste, unless it was wildly speculative.
"The joint account has $100k. I own half, so I can spend $50k on whatever I want."
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.
Learn how to get urgent court orders to freeze assets before your spouse can move them.
Understanding how to properly disclose assets and calculate net family property.
How to trace and value cryptocurrency and other digital assets in divorce proceedings.
Once the money is spent, it is harder to collect. Acting fast to secure a Preservation Order is your best defense.
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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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