If you are thinking about divorce, financial infidelity could push you over the edge. But, if you already know you want a divorce, figuring out if your spouse is hiding assets can be essential to a fair distribution of assets in the divorce property division process. Luckily, there are some common signs of financial infidelity.
Financial infidelity?
Financial infidelity refers to hiding assets, taking out loans behind a spouse’s back, hiding debts, etc. It is essentially, unilaterally hurting the marital estate for whatever reason. It could be on purpose to avoid giving a spouse their due in a divorce, or it could simply be hiding a gambling or shopping addiction. No matter the reason, you need to know about the financial infidelity now.
Is it a frequent problem?
Yes. According to some sources, about 30% of couples in the United States experience such infidelity. And, about 10% of marriages end in divorce due to some kind of hidden-money financial infidelity. This means that if your gut is telling you there is an issue, you may be onto something.
Red flags
Sudden changes in financial behaviors can be a red flag, like unusual purchases, regular mysterious withdrawals and unexplained large withdrawals. Perhaps, the biggest red flag though is secrecy. For example, if your spouse refuses to share financial information, account login information or becomes evasive when asked. Does your spouse hide bills, account statements or other financial documents? Those are red flags.
How to find hidden assets
Of course, you can hire a forensic accountant who can definitively determine whether your spouse is hiding assets. However, if you do not want to incur the expense quite yet, pulling credit reports, and contacting the banks and financial institutions your spouse uses can also help. However, if you cannot trust your spouse, it is likely time to file for a Carlsbad, California, divorce.