How Do Spouses Commit Financial Infidelity?

 Posted on July 16,2014 in Divorce

According to National Endowment for Financial Education, one-third of people admit to financial infidelity in their marriage. Income, bank accounts, purchases, cash, and other financial information are just some of the items that may be hidden from a spouse. Not only can this have consequences on a marriage, it can also have a direct bearing on any complex divorce settlements should the couple's marriage end.

There are several ways people can hide income and assets from a spouse in order to avoid including them in the marriage estate. A spouse who is going through a high asset divorce and suspects the other spouse has committed financial infidelity should consider the following:

• A spouses who are trying to hide money will transfer funds into a separate account that has just his or her name on it;

• One way to hide assets is to transfer money into an account that only has a friend's name on it. Look for suspicious transfers from any bank or brokerage accounts that you and your spouse may have together;

• Some people will overpay the IRS in order to hide money. Any overpayments can be applied to future year tax bills;

• For spouses who receive commissions for pay, once they begin planning their divorce strategy, they may begin accruing their commission checks;

• Spouses who own their own business may delay invoicing clients as a way to hide assets from a spouse. They may also come up false business expenses, such as adding friends or family to the payroll, or hiring friends as "consultants"; and

• Purchasing expensive items or charging vacations to the business is another way a spouse my attempt to hide assets.

If you suspect financial infidelity in your marriage and are considering a divorce where there will be high asset or complex property litigation, make sure you hire an aggressive Cedar Park complex divorce attorney to begin planning and strategizing to ensure you receive all that you are entitled to in your divorce settlement.