One issue we often see during divorce proceedings is the “Dissipation of Assets”.
In Singapore’s divorce context, the term “Dissipation of Assets” refers to the deliberate depletion of marital assets through various means by one spouse intending to reduce the value of the matrimonial pool.
In this article, we aim to shed light on what constitutes the dissipation of assets in Singaporean divorce cases and the steps that can be taken to address it through court applications.
Common Examples of the Dissipation of Assets
Excessive spending
: One spouse may engage in extravagant spending or financial mismanagement, depleting marital funds recklessly.
Transferring assets
: Deliberate transfer or sale of marital assets, such as property or investments, without the consent or knowledge of the other spouse.
Concealing assets
: Hiding or concealing assets to avoid their inclusion in the property division during the divorce settlement.
Gifts or loans to third parties
: Providing substantial gifts or loans to friends or family members to reduce the value of the matrimonial pool.
The Impact of Dissipation on the Division of Assets
Under the Women’s Charter, the Court is empowered to account for the dissipated assets when determining the just and equitable ratio in the division of matrimonial assets.
If the Court finds that a spouse has intentionally dissipated assets, the spouse may be ordered to reimburse the other spouse or make a corresponding adjustment in the final division ratio.
Steps to Address Dissipation of Assets in Court Applications
When faced with the possible dissipation of assets during divorce proceedings in Singapore, the following steps can be taken:
Gathering evidence
: It is crucial to gather evidence that substantiates the claims. This may include financial records, bank statements, receipts, or any other relevant documentation.
Filing a court application
: Depending on the circumstances, a spouse can file a court application to address the dissipation of assets. It may involve seeking for the Court to make an order for a spouse to produce documents or an injunction to prevent further dissipation or requesting a freezing order to preserve assets.
Seeking expert opinions
: In complex financial cases, it may be necessary to engage financial experts or forensic accountants to analyse and trace financial records to provide expert opinions regarding asset dissipation.
“Our divorce lawyers can help you explore legal options if you suspect your spouse is dissipating assets.”
Conclusion
The dissipation of assets in divorce cases in Singapore is a serious concern. It is essential for parties involved in a divorce to be vigilant and take the necessary steps to address dissipation, whether through negotiation or court applications.
Seeking professional legal advice is paramount in navigating these complex issues to ensure a just and equitable resolution during the divorce proceedings.
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When you contact our matrimonial law team, we will provide you with a consultation, tailored to your specific circumstances and goals in mind.
Our goal is to help you find a resolution that works for you.
