Legal Definitions - dissipation

Definition: The use of an asset for an illegal or unfair purpose, such as when a spouse uses community property for personal benefit during a divorce.

Examples:

• A husband spends a large amount of money on gambling and expensive gifts for his mistress while going through a divorce, depleting the couple's shared savings. This is an example of dissipation.
• A business partner uses company funds to pay for personal expenses, such as vacations and luxury items, without the other partner's knowledge or consent. This is also an example of dissipation.

These examples illustrate how dissipation involves the misuse of shared assets or funds for personal gain, often in a way that is unfair or illegal. In both cases, one party is taking advantage of the other and using resources that should be shared for their own benefit.