Can You Sue For Financial Infidelity?

The idea of financial infidelity has gained traction in recent years. People who previously had no idea whether their spouse would conceal assets or debts from them now fully understand how important financial transparency is to a happy marriage. But Can You Sue For Financial Infidelity?

Your trust in your spouse and the relationship may be destroyed if you learn that your spouse has been financially unfaithful.

And, if financial infidelity has led you to file for divorce, you might be wondering if you can sue for the damage caused by your spouse’s secret spending. 

In this article, we’ll walk you through the process and answer any questions you may have about the proceedings involved with financial infidelity.

What Is Financial Infidelity?

Couples with pooled finances commit financial infidelity when they lie to one another about money. Relationships can become tense and difficult due to financial infidelity, and if the issue cannot be resolved as a couple, the relationship may fail.

There are many ways financial infidelity can manifest in a relationship. Some examples include:

• Hiding cash.
• Lying about how they earn and keeping more for themselves.
• Having secret bank accounts, loans, or credit cards.
• Making significant purchases without informing their partner.
• Racking up debts in secret.
• Hiding an addiction to spending or gambling.
• Taking money from savings, investment plans, retirement or college funds without consulting their spouse.
• Lying about the cost of significant purchases.

Can You Sue For Financial Infidelity?

You can sue your spouse for financial infidelity; however, there are some factors that can affect the outcome of the final verdict.

You may be able to argue before the courts that since you were unaware of the debt and it solely served your spouse, it isn’t a marital property that can be divided if your spouse surreptitiously opened an account and ran up debt while having an affair or compulsively buying for their personal purposes.

However, there’s a considerable likelihood that you’ll have to contribute to the repayment of any debts your spouse accrued while paying for your household’s utilities, groceries, or your children’s needs.

The Signs Of Financial Infidelity

It’s no secret that hiding debt and overspending is becoming increasingly easy to do. Without analyzing your partner’s spending and your joint accounts, there’s no way to know for sure that they are guilty of financial irresponsibility.

However, there are a few telltale signs that might indicate that they are hiding something:

• Being defensive – Your partner refuses to discuss financial matters, trying to change the topic or having a significant mood change when it’s brought up.
• Being secretive – Your partner might start acting secretive when it comes to bills, bank accounts, or anything else involving their finances. For example, they might try and hide their credit card from you, or rush to the front door when mail is delivered.
• Frequent withdrawals – You may start noticing significant cash withdrawals from your joint account on a regular basis.
• Increasingly lavish lifestyle – Your partner is spending more money on luxury items, like vacations, gifts, or electronics.
• Removing your name from accounts – They may have removed your name from a joint account that you own together without your consent.
• An unexpected change in income – If you notice your partner’s income is lower than usual, they might be putting money from their salary into a secret account.

Financial Infidelity And Divorce

It’s easier to forgive some forms of financial infidelity than others, but ultimately, it’s up to you whether or not you decide to proceed with the divorce.

While stealing your identity doesn’t compare to a shopping addiction, if it affects you negatively and your partner is showing no signs of wanting to change, separating may be the best thing for both of you.

When you find out that your spouse has been purposefully concealing assets from you, you’ll want to take all required action, perhaps even working with a forensic accountant to find the hidden accounts and assets.

If you are unaware of all the assets that make up your marital estate, you cannot ask for a fair split of them. Finding hidden assets will be a crucial step in ensuring a just outcome.

The worth of your marital estate may be reduced as a result of hidden debts, and the balances of the different debt accounts that you and your spouse must divide and settle as part of your divorce may go up.

Talking with your lawyer about financial infidelity can help you better plan for a future divorce that might involve financial issues.

Preventing Financial Infidelity

By maintaining control over your funds, you may prevent financial infidelity in one of the easiest ways possible. Knowing how your finances typically operate will enable you to see any potential problems at their earliest stages.

This is crucial if you want to ensure that you can handle any problems that might arise. Making sure that each spouse in a marriage or partnership has equitable access to money is another important step.

Finding a balance that works best for your relationship can differ from couple to couple, so it’s crucial to do your research.

It will be easier to avoid financial infidelity if there are shared bank accounts, credit cards, and expenses. Financial infidelity may be less likely if one partner is aware that the other has access to all they do financially.

Final Thoughts

Financial infidelity can be devastating, and if it can’t be worked through as a couple, divorce is often the best option. To make sure you get everything you’re entitled to and to avoid financial ruin, consult with a divorce lawyer and discuss your options.

With the right evidence and forensic financial analysis, you should be able to leave your spouse without the burden of their debt.