By Rachel Kolesar, Partner

If you are going through a divorce and looking at the marital accounts thinking, “Where did all the money go?” you are probably not alone. Unexplained withdrawals, unfamiliar transfers, or sudden changes in spending during a marital breakdown may raise questions about whether someone dissipated marital assets.

Of course, sometimes the money went to the mortgage, the kids, credit cards, or maintaining the lifestyle your family had grown accustomed to. Other times, the answer is considerably more interesting.

I recently sat down with my colleague Jay Dahlin on Schiller DuCanto & Fleck’s Until Death Do Us Pod to discuss what dissipation looks like in divorce and why “Where did the money go?” is usually only the first question.

What Is Dissipation of Marital Assets in Illinois?

In Illinois, dissipation generally means using marital property for a purpose unrelated to the marriage while the marriage is undergoing an irretrievable breakdown.

Sounds simple enough, right? It rarely is.

Not every reckless purchase is dissipation. And a claim is not an invitation to second-guess every questionable Amazon purchase made during the marriage. When was the money spent? Who benefited? Was it normal for this couple? Can the spouse who spent it explain where it went?

The standard is not, “Would I have spent money on that?” The question is whether marital property was used for a purpose unrelated to the marriage during the relevant period.

How Do Past Spending Habits Affect a Dissipation Claim?

Very much. You cannot look at a transaction in a vacuum.

If a couple regularly took extravagant vacations, ate at expensive restaurants, and spent freely, that history matters. If someone who historically spent $500 a month on discretionary expenses suddenly starts spending $5,000 after the marriage begins falling apart, that raises questions.

That does not give a big spender a lifetime exemption from dissipation. It means the court considers how the parties actually lived, not how either spouse wishes they had lived in hindsight. In a high-net-worth divorce, the same analysis can involve much larger expenditures and more complex financial accounts.

Can Spending on a New Relationship Be Dissipation?

Yes. Hotels, trips, lavish dinners, gifts, or jewelry purchased with marital funds for a new romantic partner during the breakdown of the marriage may support a dissipation claim.

This is not about punishing someone for having an affair. Illinois is a no-fault divorce state. The issue is not the affair itself; it is whether marital money funded the relationship. The key question is not who sat across from your spouse at dinner, but who paid the bill.

When Can Gambling Losses Count as Dissipation?

A casino charge alone does not necessarily establish dissipation. Significant gambling losses during a marital breakdown, however, can be another story.

Did the parties regularly gamble? Did both spouses know? Did the amounts suddenly increase? Were cash advances or loans involved? “I lost it at the blackjack table” may explain where the money went, but it doesn't necessarily show whether it constituted dissipation.

How Do You Trace Missing Money in a High-Net-Worth Divorce?

Financial records usually tell the story. And, conveniently, they tend to have better memories than people do.

Bank statements, credit card charges, wire transfers, payment apps, investment accounts, casino records, and loan documents can reveal the trail. A $20,000 withdrawal appears. Where did it go? An investment account shows $75,000 in securities liquidated. What happened to the proceeds?

In a high-net-worth divorce, tracing transactions across investment and other financial accounts is especially important for dividing marital property. Claims are often built one transaction at a time, until the financial breadcrumbs lead you straight to the whole darn bakery.

Are Ordinary Living Expenses Considered Dissipation?

Not simply because you paid them during a divorce. The mortgage, groceries, tuition, insurance, taxes, and the cost of maintaining two households don't disappear when a marriage ends.

There is a difference between paying the family’s property tax bill and quietly draining an investment account to fund a pied-à-terre that, purely by coincidence, of course, happens to be within walking distance of Gibsons. Plenty of expenditures fall somewhere in between. Context matters.

What Are the Deadlines for Claiming Dissipation in Illinois?

Timing matters. The spending must occur while the marriage is irretrievably broken. A formal notice of intent to claim dissipation must be served no later than 60 days before trial or 30 days after discovery closes, whichever is later. It must identify the breakdown period, property allegedly dissipated, and when it occurred.

Generally, a claim cannot be made more than three years after a spouse knew or reasonably should have known about the dissipation, or reach back more than five years before the divorce petition was filed.

So, no, this is not an invitation to audit every bad purchase since saying, “I do.” If money starts disappearing, ask questions early.

What Should You Do if You Suspect Dissipation?

Start by preserving financial statements and identifying unusual transactions, dates, and accounts. Avoid assuming that every unfamiliar charge proves wrongdoing. An experienced Illinois divorce attorney can help assess whether the spending warrants further investigation and whether a timely claim may affect property division.

Following the Money

Ultimately, dissipation is about following the money, understanding the pattern, and determining whether there is a legitimate explanation. Sometimes there is. And sometimes the financial records practically stand up, clear their throats, and tell you exactly what happened.

If you have questions about dissipation of marital assets or complex property division in a high-net-worth Illinois divorce, contact our family law team at Schiller DuCanto & Fleck to discuss your circumstances.