Infidelity may also be a financial secret

| Feb 26, 2019 | Property Division |

When people in Colorado suspect infidelity, they may not first think of the financial side of the issue. However, carrying on an affair is often an expensive project. People buy gifts, rent hotel rooms or go out to fancy dates. In some cases, individuals may establish entire lives with apartments and basic daily items. The costs of infidelity can add up, and many people first learn of their spouses’ affairs due to the changes in spending and saving habits that accompany the extramarital relationships.

There are several financial issues that often come to the forefront during divorce, and some of those involve secret accounts and other hidden money. In some cases, spouses hide money in order to conceal the funds used to carry on an affair. In other cases, they are hoping to keep it out of the pot of marital property dealt with in the property division process. In both cases, however, the other spouse has a strong interest in uncovering these financial secrets.

Tax returns can be one important source of information about the financial health of the household. People who have hidden retirement savings or investment funds may still disclose their interest or capital gains on the relevant tax schedules, and employers will continue to report withholdings on the annual W-2 forms. Reviewing tax returns in detail is an important way to learn more about finances, especially if a divorce is imminent or underway. Other signs that can point to financial secrets include sudden spending changes or hiding the details of family bank accounts.

People who are going through a divorce may be particularly concerned about the long-term financial implications. By working with a family law attorney, a divorcing individual can work to achieve a fair settlement on a range of issues, including spousal support and property division.

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