Financial trust often starts crumbling in the lead-up to a divorce. Your once financially transparent spouse may start acting secretive or making unusual transactions that don’t quite add up. Maybe they claim money is tight while still affording luxuries, or they suddenly stop sharing account details.
These sudden shifts can feel unsettling, and for good reason. Some spouses go to great lengths to avoid a fair split during divorce, and it’s essential to recognize the warning signs before it’s too late. Here are some red flags that could indicate financial deception.
Unexplained withdrawals or transfers
If you notice large sums of money disappearing from joint accounts without clear reasons, your spouse may be trying to deplete marital assets before the divorce is finalized. Suspicious loans to friends or relatives are also something you shouldn’t let slide. Otherwise, you could be left at a financial disadvantage since there will be less to share when the time comes.
Sudden changes in income or expenses
Your spouse may claim a drastic reduction in income or suddenly report increased business expenses. This could be an attempt to manipulate financial records and gain an unfair advantage in the divorce or minimize their financial obligations related to child support, alimony or asset division.
Unusual cash purchases
Buying expensive items with cash, such as artwork, jewelry or collectibles, could be an attempt to hide marital assets. Since cash transactions leave no paper trail, such assets can be easily concealed or undervalued during divorce proceedings.
Overpaying debts or taxes
Making excessive payments on credit cards, personal loans or taxes can be a strategy to stash money away, with the intent of requesting a refund after the divorce is settled.
Take swift action to protect your financial interests
If you notice any of these warning signs in the weeks or months leading to divorce, it’s important to urgently gather financial records and seek qualified legal guidance on securing a fair divorce settlement. Divorce courts treat financial dishonesty seriously, and you may be entitled to a larger share of assets or other legal remedies if such misconduct is uncovered.
