I am creating game for android, and have some confusion. I haven't screen a clear answer to my question. People say I should create my assets in the show method, and dispose of them in the dispose. So, when should I call the screens dispose method? If the user goes home (on android/ios), should I dispose of anything? Thanks!
The dispose method is called by libGDX, you don't have to call that yourself. You don't have to do anything related to assets in your pause and resume methods.
Note that your asset management depends on your design. But usually you don't create the assets in the Screen#show method, but instead use a dedicated loading screen for that.