Vol. 10, No. 6, Pg. 40. Dissipation of Marital Assets: How South Carolina and Other States Prevent and Remedy the Problem.

• Author: By Lori D. Hall

South Carolina Lawyer

1999.

Vol. 10, No. 6, Pg. 40.

Dissipation of Marital Assets: How South Carolina and Other States Prevent and Remedy the Problem

40DISSIPATION OF MARITAL ASSETS: How South Carolina and Other States Prevent and Remedy the ProblemBy Lori D. HallWhen a marriage becomes irretrievably broken, a spouse's willingness to share marital wealth often yields to efforts to leave the other spouse with little or no marital property when divorce proceedings conclude.

Dissipation of marital assets has been defined as occurring "when a spouse (1) uses marital assets (2) for his or her own benefit for a purpose unrelated to the marriage (3) at the time when the marriage is in serious jeopardy or undergoing an irreconcilable breakdown." In re Marriage of Andrea Schuster and Alan Schuster, 586 N.E.2d 1345 (Ill. App. Ct. 1992).

In attempting to dissipate marital assets before or during the pendency of legal proceedings, a spouse may destroy or conceal personal property, deplete banking accounts or encumber or transfer real estate. Many states have enacted statutes to prevent this problem and to remedy the harm suffered by the innocent spouse. These statutes set forth specific guidelines for financial disclosure, allow setoffs or additional awards to compensate the injured spouse, provide a wide range of uses for temporary restraining orders and injunctions, and require penalties ranging from fines to payments of attorney's fees for noncompliance with the law.

DETERMINATION OF PROPERTY DIVISION AND ADDITIONAL AWARDS

South Carolina law allows family court judges to consider a party's treatment of marital assets in making an equitable distribution of property. Section 20-7-472 sets forth factors that judges are to use in determining the equitable apportionment of marital property. S.C. Ann. § 20-7-472 (Law. Co-op. 1976).

Specifically, § 20-7-472(3) states that "(T)he contribution of each spouse to the acquisition, preservation, depreciation, or appreciation in value of the marital property" should be considered in equitable division of marital property. S.C. Arm. § 20-7-472(3) (Law. Co-op. 1976).

In Dixon v. Dixon, Opinion 2940 (S.C. Ct. App. filed Feb. 8, 1999) (Shearouse Adv. Sh. No. 6 at 10), the Court of Appeals considered the husband's liquidation of his company's assets in ordering him to make a lump sum payment to the wife to achieve equitable distribution. His business, Crane & Rigging Services, Inc. (C&R), was turning a profit before the parties...