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What is financial infidelity? 

On Behalf of | Sep 25, 2023 | Divorce |

When people think of infidelity leading to divorce, they often think of one spouse having an extramarital affair. But that’s not the only way that it can happen. There are also instances of financial infidelity leading to divorce.

So what is financial infidelity? It’s generally just when people are intentionally deceitful about their finances, or when spouses intentionally lie to one another. It’s different than simple miscommunication issues about spending. Infidelity is done on purpose and financial assets – or spending habits – are being hidden in some way. This contributes to a breakdown in trust in the marriage, on the grounds that one person was not honest about their financial situation.

Why does this occur?

There are many different reasons why this could occur. Perhaps one spouse knew the other would not approve of their spending habits. Or perhaps they were spending on something that was a secret, such as a substance abuse issue or an addiction issue.

What impact will it have?

Financial infidelity can certainly cause a divorce to occur. But there are also other problematic ways in which this financial infidelity could impact the eventual divorce case. If one person hasn’t been honest about how they’re spending money, it becomes more complicated to divide assets. There is also the chance that assets are being hidden or dissipated during the divorce itself. Dissipation is the process of spending assets down just to avoid dividing them. 

What comes next? 

All of this can get very complicated, and those who are involved need to understand their legal options. This is especially true if the breakdown of the marriage is less than amicable. 

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