Divorce Mediation For Financial Infidelity: Unveiling Secrets Of The Past And Solutions For The Future

A breach of trust can severely harm a marriage. Sometimes, betrayal spells the end of a union. The word “infidelity” is often associated with physical or emotional cheating, but a romantic partner’s trust can be betrayed in many other ways. One such form of dishonesty is financial infidelity, where a partner in a relationship is deceptive about how—and how much—they earn and spend.

How Financial Secrets Lead To Divorce 

Financial infidelity is a pattern of behavior of hiding one’s spending from their spouse. It comes in many different forms such as sending money to parents or relatives, hiding shopping expenses, and even gambling. 

Financial dishonesty can be just as damaging as other breaches of trust. Suppose finances are constantly strained and one person is revealed to have hidden new or existing assets or income. In that case, their partner may be upset that they chose to keep this money to themselves rather than contribute to their shared expenses and liabilities. Hiding how much one spends on personal expenses or parties outside of the marriage, such as family members or extramarital partners can rock the foundation of a marriage; one may feel that the other person is prioritizing others above their relationship.

Financial infidelity occurs at staggeringly high rates within marriages. Financial infidelity poses a unique threat by not only brewing distrust within a relationship but also having the potential to escalate into resentment and aggression between spouses. 

If one suspects their spouse of financial infidelity, they may not know what to do. Attempting to discern if your partner is committing financial infidelity and dealing with the discovery can be a difficult process. 

Financial infidelity can lead to bankruptcy. Moreover, if one spouse uses and maxes out joint credit and then files for bankruptcy, they leave the other spouse solely liable for repayment, even if the other spouse was unaware of the joint credit usage. Accumulating debt uncontrollably, such as through gambling or excessive spending, and hiding it from one’s spouse can be emotionally and financially devastating; in community property states like California, the courts see the debts accrued over the course of the marriage as the responsibility of both parties.

Private Financial Divorce Mediation

Discovering financial infidelity is shocking and the initial finding usually does not reveal the full extent of it.

The consequences, such as subsequent debt, can feel like an unbearable weight that falls upon the spouse who was deceived. It is crucial for the truth to come to light in the process of determining the division of assets and liabilities in divorce.

Litigation can lengthen the back-and-forth of discovery, as each spouse discloses their side of the story to their own lawyer, who negotiates on behalf of their client. As a result, legal fees accumulate. Additionally, litigation may prolong the process, becoming a stressful experience that results in court decisions that are not agreeable to either party.

On the other hand, mediation guides couples through the process of separating on their own terms, rather than leaving matters up to the court. A mediator facilitates direct, face-to-face communication between parties in the privacy of the mediation office. During the discovery process, a mediator will review financial documents, question spouses, and even bring in experts if necessary to ensure both spouses have the same information while guiding them through the process of divorce. In mediation, parties may negotiate to divide assets and liabilities outside of community property laws. 

Mediation streamlines the process of divorce, even in severe cases of financial infidelity. As each spouse hears from the other regarding their actions, needs, and concerns, mediation keeps the details of financial infidelity and pertinent information confidential. Litigation would make sensitive information, including financial information, part of the public record of the court proceedings. 

Orange County Financial Divorce Mediator

Secret spending is on the rise. Uncovering financial infidelity and determining the steps needed to repair or end your marriage can seem daunting. If you are worried about financial infidelity, you are not alone, and you do not need a prolonged and expensive court battle. There is another path forward. 

Contact Colleen McNamee of McNamee Mediations for more information.

Call Us Today: +1 (949) 223-3836

E-Mail Us: mmediations@msn.com