If you discover an unusual transfer, a valuable item sold for far less than expected, or a string of unexplained withdrawals, you may worry that there will be nothing left to divide in your divorce. South Carolina Family Court can consider what happened to marital property, including whether a spouse deliberately depleted it. But the court needs more than suspicion or a large number on a bank statement. The source of the property, timing, purpose, and proof of value all matter.
This issue is often called dissipation of marital assets. It can involve cash, investments, personal property, or a business. If a joint bank account was emptied, the immediate account steps also deserve attention. So what happens when a spouse wastes marital assets before divorce in South Carolina, and what can you do to protect the remaining property?
Quick Answer: If the evidence shows that a spouse wasted, hid, or deliberately depleted marital property, South Carolina Family Court can consider that conduct when dividing the marital estate. The court may charge the lost value against that spouse’s share, adjust the percentage each spouse receives, or order a monetary award. Ordinary household bills, legitimate debt payments, and good-faith investments that lost money generally are not dissipation.
Table of Contents
- What Counts as Wasting Marital Assets?
- Does Spending Before Filing for Divorce Matter?
- What Evidence Helps Prove Where the Assets Went?
- Can the Court Protect Property While the Case Is Pending?
- How Might a Judge Address Proven Waste?
- What Should You Do If You Suspect Your Spouse Is Wasting Marital Assets?
What Counts as Wasting Marital Assets?
South Carolina divides marital property through equitable apportionment. Property acquired during the marriage and owned when marital litigation is filed is generally marital property, regardless of whose name is on the title, subject to statutory exceptions. The court considers each spouse’s contribution to acquiring, preserving, appreciating, or depreciating the property, along with the other statutory factors governing equitable apportionment. “Equitable” means fair under the circumstances; it does not promise an automatic equal split.
Possible warning signs include transferring marital funds to a friend or relative, selling property without a credible explanation for the price or proceeds, concealing an account, or spending substantial sums for a purpose unrelated to the household as the marriage breaks down, such as money spent on an affair. If an affair is part of the case, our article on how to prove adultery in South Carolina explains the evidence courts look for. A business owner’s decisions can also affect the value available for division. These are reasons to examine records, not automatic findings of wrongdoing.
Ordinary household bills, medical expenses, taxes, necessary living costs, and legitimate debt payments do not become dissipation simply because they were paid during a separation. Nor does every unsuccessful investment establish deliberate waste. The court considers what the money was used for and the evidence surrounding the decision. If an asset came from an inheritance or another nonmarital source, its character and tracing require separate analysis.
The following table summarizes how a court may view common situations involving marital assets:
| Situation | How a Court May View It |
|---|---|
| Transferring marital money to a relative or friend shortly before separation | May warrant scrutiny; the court will consider whether the transfer had a legitimate purpose, such as repaying a genuine loan |
| Selling property for far less than its value | The court may examine whether the price and the use of the proceeds are credibly explained |
| Concealing an account or moving funds to an undisclosed account | May support a finding of misconduct and a need to trace the funds |
| Spending substantial sums on an affair or another purpose unrelated to the household as the marriage breaks down | May be considered if the spending depleted marital property or the misconduct affected the parties’ economic circumstances |
| Intentionally running down a marital business during the case | The business’s value when the case began may be charged against the responsible spouse’s share |
| Paying ordinary household bills, taxes, medical expenses, or legitimate debts | Generally not dissipation |
| A good-faith investment that lost money | Generally not deliberate waste by itself |
| A business decline caused by market conditions | Generally not charged to either spouse without proof of fault |
Does Spending Before Filing for Divorce Matter?
Yes, but timing can make the analysis more difficult. South Carolina law defines the marital estate by reference to property acquired during the marriage and owned when marital litigation begins. An asset spent before filing is not automatically an asset the court can simply place back on the inventory at its former balance. Records showing when the money existed, where it went, and how the spending affected the parties’ economic circumstances are crucial.
The equitable-apportionment statute allows the court to consider relevant marital misconduct or fault when it affected the parties’ economic circumstances or contributed to the breakup, as well as each spouse’s contribution to preserving or depreciating marital property. The statute also limits when personal conduct may be considered as marital misconduct or fault; the court can separately examine what happened to marital property during the litigation. A suspicious transfer before filing may therefore be relevant. The result depends on the facts; no fixed rule requires repayment of every dollar spent in anticipation of divorce.
Conduct after a case begins can matter, too. In Dixon v. Dixon, the South Carolina Court of Appeals addressed a marital business that lost its value during the litigation. The court found strong evidence that the husband intentionally sabotaged the business to keep his wife from sharing in it. It included the business’s value at the start of the case in the marital estate and assessed that value entirely against the husband’s share.
Dixon also recognizes that a business may decline in value through no fault of either spouse. The result in Dixon depended on specific proof of intent, causation, and the business’s value when marital litigation began. It does not mean that every post-filing loss will be charged to one spouse.
What Evidence Helps Prove Where the Assets Went?
Start with a timeline, not an accusation. Identify each asset, its source, its approximate value before the disputed transaction, the transaction date, where the proceeds went, and any explanation your spouse gave. Preserve the complete records behind each entry, including:
- Bank, brokerage, retirement, and credit-card statements, including several periods before and after the unusual activity;
- Transfer confirmations, canceled checks, payment-app histories, and documents identifying a recipient or destination account;
- Bills of sale, titles, appraisals, business records, loan documents, and tax returns for property that was sold or pledged;
- Messages about the transaction and the names of witnesses who personally know what happened; and
- Records showing ordinary household expenses, debts, and other possible explanations.
For example, a $30,000 transfer to a relative shortly before separation raises questions. It does not establish whether the payment repaid a genuine loan, was a gift, or was intended to place marital money beyond reach. A statement showing the withdrawal, the recipient’s records, an alleged promissory note, and earlier payment history can help resolve those questions.
Use only lawful means to obtain records. Do not guess a password, access an account you are not authorized to use, alter documents, or secretly move assets in response. In a domestic relations case in which a party’s financial condition is relevant, both parties generally must serve and file current financial declarations, and counsel can assess discovery requests and appropriate third-party records.
A spouse who hides information in discovery can face sanctions, as we explain in our article on the consequences of playing games in discovery. In a substantial or complex estate, an accountant or valuation expert may help trace money or assess a business loss.
Can the Court Protect Property While the Case Is Pending?
A party may seek temporary relief through a written motion that identifies the issue and requested protection with specificity. Depending on the circumstances, counsel may request an order preserving assets, requiring financial disclosure, addressing possession or use of property, or allocating immediate bills. The request should identify the particular property and the risk. An existing order may already restrict transactions, so read it before taking action.
Under Rule 21 of the South Carolina Rules of Family Court, an ordinary temporary hearing is generally set no sooner than 21 days and no later than 45 days after the hearing request is filed or submitted. The moving party generally must serve the motion and hearing notice at least 20 days before the hearing. The court may modify scheduling, notice, and time requirements for good cause.
Relief without advance notice is subject to the more demanding temporary-restraining-order procedure in Rule 65 of the South Carolina Rules of Civil Procedure. It requires specific facts, shown by affidavit or a verified complaint, establishing that immediate and irreparable injury, loss, or damage will occur before notice can be served and a hearing held. A concerning withdrawal alone does not guarantee an immediate order.
If a bank account has been drained, also check pending household payments and preserve account activity promptly. If a home or business interest is being transferred, obtain advice tailored to that property before assuming a routine temporary hearing will prevent the transaction.
How Might a Judge Address Proven Waste?
The court may require an accounting and, when the evidence warrants it, account for missing value when dividing the marital estate. It may charge value against the responsible spouse’s share, adjust the apportionment, or award money to achieve equity. South Carolina law authorizes reasonable means, including a monetary award, to carry out equitable apportionment. The remedy must fit the proof and the overall property division.
Suppose a marital asset worth $40,000 at the start of litigation is deliberately destroyed to keep the other spouse from sharing in it. A court may consider the established value and assign the economic loss to the responsible spouse, as Dixon illustrates. If the value fell because of ordinary market conditions or a genuine business setback, the analysis may differ. Neither an equal cash reimbursement nor a particular percentage division follows automatically.
It is also important to distinguish property division from responsibility for a new debt. A spouse’s post-filing borrowing is not automatically a marital debt merely because it occurred before the divorce was final. The debt’s purpose when it was incurred, and who benefited, may matter. The court’s decision allocating debt between spouses does not itself rewrite a creditor’s contract with a joint borrower.
What Should You Do If You Suspect Your Spouse Is Wasting Marital Assets?
Save the records you can lawfully access, make a factual timeline, and identify what property may still be at risk. Keep ordinary bills current where possible and get advice before changing an account, transferring an asset, or confronting a third party. If you are also deciding whether to leave the home, our article on whether you should move out before your divorce explains other issues to consider first. If you want your spouse to leave instead, see our article on whether you can evict your spouse in South Carolina.
A well-supported request tells the court what existed, what changed, when it changed, where the value went, and what protection is needed now. Bring your attorney the complete financial picture, including transactions that may support your spouse’s explanation.
The attorneys at Futeral & Nelson have represented clients in divorce cases in Charleston, Mount Pleasant, North Charleston, Summerville, and throughout the Lowcountry since 2003. We can review the records, assess whether temporary relief is appropriate, and present the property-division issue in the context of the entire marital estate. If you are concerned that your spouse is wasting marital assets, contact our Charleston divorce lawyers at 843-284-5500 to discuss your situation and your options.
