Marital infidelity is a common issue. Many divorces begin with one spouse discovering that the other has been unfaithful. However, romantic or sexual infidelity is not the only way that one spouse can betray the other.
People can also engage in financial infidelity and cause major harm to their closest relationships. Spouses who are aware of financial infidelity can potentially spot warning signs of this concerning form of misconduct and act to protect themselves in a timely fashion.
What does financial infidelity involve?
Infidelity involves violating the trust at the core of a relationship. Financial infidelity involves behaviors that deceive a spouse regarding income, assets and financial obligations. Financial infidelity can sometimes involve hiding good fortune. One spouse under-reports their income and sets funds aside in a separate bank account without disclosing that money to their spouse. They may have various resources that they do not share with their spouse or even tell them about during the marriage.
Financial infidelity can also involve attempts to hide spending habits and debt. Individuals struggling with a gambling addiction or substance abuse might engage in financial infidelity to hide their behavior. People who can’t stop shopping online may also engage in financial infidelity by hiding account statements or even opening secret lines of credit without telling their spouses.
How can financial infidelity affect divorce?
For some people, financial infidelity becomes the reason that they file for divorce. They are no longer able to trust their spouses. Particularly in scenarios involving inappropriate spending or hidden debts, one spouse may fear being legally responsible for the financial activity of the other. People who realize that their spouses have regularly lied to them may decide to end the relationship for their own protection and peace of mind.
Financial infidelity can also complicate divorce. Particularly if the misconduct continues into the early stages of divorce, one spouse might attempt to hide assets and income from the other. They may misrepresent their resources when making disclosures to the courts.
Hidden assets and income can directly influence the outcome of property division proceedings. The courts may hold spouses responsible for lying about their assets. In cases involving secret debts and excessive spending, the spouse who was unaware of the other’s financial activities can sometimes ask the courts to exclude those debts from the marital estate.
Recognizing that financial secrets can be toxic for marriage can help those considering divorce or responding to a divorce filing. Spouses dealing with financial infidelity may need help reviewing disclosures to ensure a fair outcome when they divorce. Seeking legal guidance is a good way to get started.