How Financial Infidelity in a Marriage Complicates Divorce

 Posted on December 27, 2024 in Division of Property

Financial infidelity is a term used to describe how married couples with combined finances may be less than truthful with one another regarding how marital funds are spent. For example, one partner may be hiding significant debt from the other, or one may be making large expenditures without discussing them with the other spouse. Financial infidelity naturally creates tension and distrust in a marriage and is often at least one of the reasons for divorce.

In one study, 54 percent of the spouses said if they found out their partner had taken on significant debt without their knowledge, divorce would be their first reaction. Excessive spending and lying about spending and debt are often symptoms of deeper issues in marriage, making money worries are one of the most common reasons for a divorce. If you are facing divorce, it is important that you have an Arlington Heights, IL divorce attorney who is a strong legal advocate on your behalf.   

What Are Some Signs of Financial Infidelity?

Today, many people use online bill pay, so there is little "evidence" of financial infidelity unless the other spouse has the necessary passwords and routinely checks credit card and bank records. With no physical bills that come in the mail, a spouse who is not paying close attention could be stunned to find how much debt has been accrued. Just like income made during a marriage is considered a marital asset, both spouses are generally liable for debt accrued during the marriage.

A spouse who has difficulty managing money – or who has an addiction – can spend tens of thousands of dollars without his or her partner ever knowing. There are some red flags that you should note, whether a spouse is married, married and considering divorce, or in the middle of a divorce:

• New things keep appearing in the home, including furniture, clothing, gifts, etc.
• One spouse takes expensive trips and prevaricates when asked about the cost.
•  One spouse makes frequent unexplained withdrawals from joint marital accounts.
• Defensiveness on the part of one spouse when the other raises the subject of money.
• One spouse suspects the other is hiding assets.
• One spouse is making frequent trips to casinos or going on "secret" shopping trips.
• Bank statements are being concealed.
• One spouse knows the other has an alcohol or drug habit, and the couple is always short of money for necessary items.

The Impact of Financial Infidelity on Divorce

The state of Illinois is an equitable division state. This means marital assets are divided fairly, although not necessarily equally. A spouse who has spent considerable amounts of marital assets without the other’s knowledge may receive a smaller share of marital assets.

Practically speaking, if one spouse concealed $150,000 worth of debt from the other during the marriage, that spouse’s share of the marital assets might be reduced by that amount. In some cases, spousal infidelity can also affect decisions regarding spousal support, with a judge awarding a higher amount of spousal support to the "innocent" spouse.

How to Combat Financial Infidelity During Divorce

Spouses who have had issues with trust and/or money during the marriage should always watch for red flags, such as changes in spending habits, hidden accounts, or unexplained expenses. Both spouses should have access to all financial records, including bank accounts, credit card accounts, and tax returns.

Sudden secrecy about finances, new credit cards, or accounts one spouse was unaware of should be taken very seriously. Anything that seems suspicious should be documented so that those suspicions can be proven. A spouse with suspicions about financial infidelity, including hidden assets, should ensure he or she has copies of all financial documents and should potentially even consider freezing joint credit card accounts.    

Contact an Arlington Heights, IL Divorce Lawyer

Speaking to an experienced Rolling Meadows, IL divorce attorney can be a positive step for your future. When you choose Law Offices of Donald J. Cosley, you will have an attorney who personally handles every aspect of your divorce. You will never be handed off to a staff member, and when you call, you will talk directly to your attorney. Call 847-253-3100 to schedule a free consultation.