Case Review - Spouse Has to Pay When Found to Have Squandered Assets

In Franklin v. Franklin, the Missouri Eastern District Appellate Court, upheld the trial court's finding that the husband had squandered a marital asset and ordered the wife to be reimbursed.  During the last part of the marriage the husband talked the wife into mortgaging the marital residence in order to obtain funding for the couple's business.  The parties separated with the husband remaining in the residence.    The mortgage payments became overdue and the husband refused to assist wife with bringing them current and saving the residence from foreclosure. The wife sought reimbursement for the loss of the residence.  During the divorce proceeding the wife had a financial expert review the business and personal finances and the expert testified at trial that the husband had spent an average of $100,000.00 per year from the business account on his personal expenses and had put down a large sum for a house he wanted to purchase.    The appellate court stated that when a trial court hears evidence that shows  a spouse has squandered a marital asset (the residence) in anticipation of a divorce action, the trial court may order reimbursement to the other spouse. 

Source:  Franklin v. Franklin, Missouri Court of Appeals, Eastern District, Case number ED87422, February 6, 2007