As it applies to divorce, courts sometimes find themselves faced with considering clean hands when dividing property in a marital estate when one or both of the parties have acted improperly for the purpose of defrauding creditors, or when the property has been acquired illegally.

In general, when both spouses are involved in misconduct, such as hiding assets to defraud creditors, the property returns to the marital estate and is subject to distribution. In general, courts consider the division of property independent of any actions by aggrieved third parties or any criminal action. When only one spouse acts improperly, for example, hiding marital assets to defraud creditors, courts have the authority to deny that party a share of the asset.

Murder or attempted murder of one spouse by the other raises special considerations in divorce actions. In these cases, courts have made one-sided judgments in favor of the victim spouse, wherein the perpetrator forfeits any claim to the marital estate.

See also Forfeiture.

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