How to Deal with an Overspending Spouse
If divorce is looming, here are six ways to protect yourself financially.
Financial infidelity occurs when couples with combined finances lie to each other about money. For example, one partner may hide significant debts in a separate account while the other partner is unaware.
This means that either owner would be allowed to empty the account at any time, regardless of which person deposited the funds. During a divorce, any assets or funds contained in a joint account are considered marital property.
One of the biggest reasons that a husband will ever continually disrespect his wife, is because he himself has a low self confidence. His way of dealing with that is to make his wife feel small and point out her every flaw instead. Or, perhaps by seeking gratification in the arms of another woman out side the marriage.
If you aren't married, you have no obligation to share the details of your financial life with your partner. And even if you are hitched, there's no law that says married couples have to divulge their finances to each other.
Since California is a community property state, the law applies that the community estate shared between both individuals is liable for a debt incurred by either spouse during the marriage. All community property shared equally between husband and wife can be held liable for repaying the debts of one spouse.
Financial infidelity is viewed as a “premeditated crime” because hiding or lying about money takes active and deliberate planning. And many people view it as worse than cheating, physically, on a partner. In the case of abuse, this is a completely justifiable “crime.”
But the benefit of this money management system is mostly psychological, rather than legal. If you live in a community property state, anything acquired during the marriage — including the income used to fund those separate accounts — is considered "community property" and therefore belongs to both spouses.
What to do When Your S.O. is Bad With Money
The consequences of hiding money from your spouse or partner
Others hide money because they're embarrassed over the way they handle it. But when partners have financial secrets, it's a sign of deeper relationship concerns. It's never just about the money; money can represent feelings of shame, fear, mistrust, and more.
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