When embarking on the process of dividing assets during a divorce, each spouse logically looks for ways to protect their financial future. Minimizing losses takes center stage in many discussions at this time.
In some situations, property division negotiations may reveal financial infidelities not previously known by one party. In other situations, financial infidelity may well have led to the couple’s divorce. Research from CreditCards.com indicates as many as 15 million people may engage in this type of behavior.
Financial infidelity and hidden assets
As explained by NBC News, one form of financial infidelity involves hidden assets. This may come in the form of bank accounts or investments that one spouse opened in their name only without telling their partner, potentially in the hopes of preserving assets from being split in an anticipated divorce. These accounts may even have been funded with marital assets, creating complexities when determining what assets to split and how during the divorce.
Financial infidelity and hidden debts
NPR indicates that another form of financial infidelity exposes an unknowing spouse to significant financial problems when one person racks up debt without informing their partner. This debt may include credit card accounts, personal loans or even business loans. When this sort of issue arises in a divorce, the spouses must negotiate liability for the debt going forward.
The paperless society and financial infidelity
The ease of conducting virtually any financial transaction online and sans any physical paper trail today may well enable financial infidelity, or at least make it easier to hide than it ever was in the past.