Among other things like infidelity and domestic abuse, financial dishonesty is a common reason for divorce. If financial dishonesty has played a part in your divorce, it could also impact your divorce finances. Learn more about financial dishonesty and divorce.
What is Financial Dishonesty?
Financial dishonesty is exactly how it sounds: being dishonest about any finances during the marriage. While there are different degrees of financial dishonesty, many instances can lead to additional marital problems and, in all situations, can lead to a divorce. Some types of financial dishonesty, like secret shopping sprees here and there, are less likely to cause problems in a marriage, but can still be detrimental. There are also other common things that fall under financial dishonesty: gambling, drug, or any addition; overspending; excessive debt. Each of these situations can be extreme and can create huge problems in the marriage.
No matter how small, financial dishonesty in a marriage is always a red flag.
Who is Financially Dishonest?
There is no one party that financial dishonesty always falls under. Either partner can be financially dishonest and that can create problems for themselves and the other partner. A person who is being financially dishonest may have other problems within the marriage too. Financial dishonesty can be the cause of other lies and toxicity within a marriage.
There are many reasons that a person may be financially dishonest. They may have a problem—like in the case of addiction—or they may just struggle with spending. Other factors include affairs, mental illness, and behavior patterns. There may also be other, or multiple causes for hiding spending or financial information.
Financial dishonesty and divorce are not always synonymous. In many instances, spouses can work through the dishonesty and find healthy ways to cope with the negative impacts of it.
Uncovering Financial Dishonesty
For many people who are hiding their spendings habits or who have a problem with financial dishonesty in any form, they do not stop until their problem is uncovered by their spouse or an outside source. Uncovering financial dishonesty can look like:
- Finding receipts for spending
- Seeing information on a credit report
- Finding items that were purchased
- Being notified by mail or email about a debt
When one spouse uncovers financial dishonesty, they will likely feel betrayed and will have many other emotions that are related to the dishonesty. Because of that, financial dishonesty often leads to that spouse wanting a divorce.
Discovery During Divorce
In some instances, financial dishonesty is not the cause for divorce. It may be uncovered during the divorce. In these cases, the financial dishonesty could change the terms of the divorce. It could impact which party is at fault or who gets a better deal in the divorce. The dishonesty could also play a part on alimony determinations.
When dividing assets, financial dishonesty may have an impact. If the spouse was spending a lot of money or if they were being dishonest about any of their assets, this could cause problems when dividing assets. If there is less available, you might not get what you had hoped for during the divorce. Additional individual bank accounts can also play a part. People who are getting divorced are obligated to report all information including any bank accounts that they have separate from the marriage so if a financially dishonest spouse has a different bank account, they will need to report that information.
Financial dishonesty and divorce in general can feel overwhelming and be hard for anyone to handle. While a divorce attorney can provide you with the help you need during your divorce in court, they may not always be able to help you with the financial aspects of your divorce. This can lead to one party not receiving the assets that they deserve after divorce.
Impact to Divorce Finances
Finances often get complicated during a divorce and financial dishonesty can make them even more complicated. Because of this, it’s important to have a financial advisor to help with any issues that could arise because of financial dishonesty. A certified divorce financial advisor will be able to help spouses come to an agreement, divide the assets that are fair to everyone —including the spouse who was dishonest— and create a plan for the future.
No matter what the cause of your divorce is, you need a trustworthy and experienced financial advisor to assist you with all things related to money in your divorce. Let Wiser Divorce Solutions help you create a plan today!