Wasting Marital Assets: Dissipation in a South Carolina Divorce

Reviewed by Carrie Warner, Attorney at Law, SC Bar No. 72836 · Last reviewed November 2, 2026

Dissipation means one spouse using marital money or property for a purpose unrelated to the marriage, often while the marriage is breaking down, in a way that shrinks what is left to divide. South Carolina family courts may take dissipation into account when they divide the marital estate. Proving it usually takes careful records, not just suspicion.

What Dissipation Looks Like

There is no single statutory definition of dissipation in the South Carolina Code. Courts look at the facts. Spending that is often raised as possible dissipation includes:

• Spending on an affair, such as gifts, travel, hotel stays, rent or other support for a paramour
• Gambling losses, especially large or new patterns of gambling
• Gifts or transfers to relatives or friends that are not normal for the family
• Hiding or moving assets, such as cash withdrawals, transfers to a new account, or “loans” to a relative
• Selling property below value or giving it away
• Deliberately destroying or neglecting property, such as letting a business or rental fail on purpose
• Running up debt on joint credit for personal purposes after the marriage has broken down

Ordinary living expenses are not dissipation. Paying rent on a new apartment, buying groceries, or paying your own attorney from reasonable funds is generally not the same as wasting assets. The question is usually whether the spending was for a marital purpose and whether it was reasonable.

How a Court May Account for It

South Carolina uses equitable apportionment, which means the court weighs factors to reach a fair division instead of applying a fixed formula. S.C. Code § 20-3-620(B) lists 15 factors. Several can relate to dissipation:

• Factor 2: marital misconduct or fault, if it affected the economic circumstances of the parties or contributed to the breakup
• Factor 3: the value of the marital property and each spouse’s contribution to acquiring, preserving or increasing it
• Factor 15: other relevant factors the court expressly lists in its order

When a court finds dissipation, it has tools to respond. It may, for example, treat the wasted amount as if it were still in the estate and count it against the spending spouse’s share, or adjust the overall percentage. The approach depends on the judge and the evidence. There is no set formula, and a finding of dissipation is never automatic.

Marital misconduct that wastes money can also be relevant to alimony. The alimony factors in § 20-3-130(C) include marital misconduct or fault, and the court considers it if it affected the couple’s finances or caused the breakup. Our equitable distribution page covers how the factors interact.

Timing: Before and After Filing

Timing matters in two ways.

Spending before filing

Dissipation claims often focus on the period when the marriage was failing, for example after an affair began or after the spouses separated. Spending from years earlier, when both spouses were living as a couple, is harder to call dissipation, because spouses in an intact marriage share many financial decisions.

Spending after filing

The marital estate is generally measured as of the date the case was filed. Under § 20-3-620(B)(2), misconduct after a temporary order, a signed settlement agreement or a permanent order is excluded from the fault factor. That does not mean anything goes after filing. Once the case begins, the court can issue temporary orders restraining either spouse from selling, moving or spending marital assets outside the normal course. Violating an order can lead to contempt proceedings. If you are worried about this, raise it at the temporary hearing.

Building the Evidence

The spouse claiming dissipation generally has to show what was spent, when, and why it was not for a marital purpose. Useful evidence can include:

1. Bank, credit card and brokerage statements, ideally for a period well before the separation
2. Records of cash withdrawals and ATM use
3. Casino player records or online gambling account histories
4. Receipts, travel records and hotel bills
5. Transfers to new or unknown accounts
6. Deeds, vehicle titles and bills of sale showing transfers of property
7. Business records if a spouse controls a company

Much of this comes through formal discovery, such as requests for production and subpoenas to banks. Each spouse must also file a financial declaration under Family Court Rule 20, and inconsistencies between that declaration and the records can be revealing.

In larger or more complex estates, attorneys sometimes work with a forensic accountant, who can serve as an expert witness on where money went. Our article on finding hidden assets in a South Carolina divorce covers related techniques.

Questions Courts Often Ask

Every case turns on its own facts, but the same practical questions tend to come up when a judge looks at disputed spending:

• Was the spending for a marital purpose, such as the household or the children, or for one spouse alone?
• Did it happen while the marriage was breaking down, or during a period when the couple was getting along?
• Was it hidden, or did the other spouse know about it and go along with it?
• Is it out of line with how the family usually spent money?
• Can the amount be measured with reasonable accuracy from the records?

A clear timeline that answers these questions, supported by statements, is often more persuasive than a long list of complaints.

Practical Steps If You Suspect Dissipation

• Gather records now. Download statements you can lawfully access, and note account numbers.
• Write down what you know. Dates, amounts, and anything your spouse said about the spending.
• Do not retaliate. Draining accounts in response can hurt your own credibility. Our guide to protecting your finances before a divorce covers safer steps.
• Ask about temporary restraints. A temporary order can limit spending while the case is pending.
• Do not access accounts or devices you have no right to use. Improperly obtained evidence can create legal problems for you.

If You Are Accused of Dissipation

Not every large expense is waste. If your spouse claims you dissipated assets, gather proof of what the money was for, such as medical bills, children’s expenses, ordinary household costs or a debt payment. Spending that your spouse knew about and agreed to during the marriage may also be viewed differently than secret spending.

For more on dividing property and support, return to the South Carolina Divorce Guide.

Frequently Asked Questions

Is spending money on an affair considered dissipation?

It can be. Spending marital money on a paramour is one of the most common dissipation claims, and courts may account for it when dividing property.

Does my spouse have to pay back money they wasted?

Not usually as a direct repayment. Instead, the court may adjust the division of the marital estate, for example by counting the wasted amount against that spouse’s share.

Is it dissipation if my spouse paid a divorce lawyer from joint funds?

Not necessarily. Reasonable spending on living costs and legal fees is generally different from waste. The court can also address attorney fees separately.

How far back can a dissipation claim go?

There is no fixed look-back period. Claims usually focus on the time when the marriage was breaking down, and older spending is harder to prove as waste.

Can I stop my spouse from draining accounts while the case is pending?

You can ask the court for a temporary order restraining either spouse from moving or spending marital assets outside normal expenses.

Sources

• S.C. Code Title 20, Chapter 3 (§§ 20-3-130, 20-3-620, 20-3-630)
• South Carolina Court Rules (Family Court Rules, SCRCP)