• 29
  • June
    2011

It is a good thing most Colorado spouses trust their husband or wife to be truthful about money. After all, honesty is the foundation upon which a strong marriage is built. But a new study from the Denver-based National Endowment for Financial Education suggests that up to a third of spouses have at least a little bit of dirty laundry when it comes to their finances.

A spouse's accurate impression of his or her significant other's money is important during the marriage, of course, but it becomes even more so should the couple decide to divorce. Such an understanding has serious bearing on important things like property division, asset protection or divorce settlement. A wife needs to have an accurate impression of what her husband makes and owes, and vice versa, to ensure the good bargaining position that is necessary to achieve a just result.

But according to the survey:

•· Thirty-one percent of people polled said they have been "deceptive about money."

•· A full 50 percent of people said they have hidden cash or a minor purchase from their spouse at one point.

•· Thirty-four percent said they have "flat-out lied about debt or income."

•· Some 16 percent of respondents said their financial infidelity eventually lead to divorce.

The study's author said the deception starts early because only 14 percent of recently married couples discuss money. A major reason people do not come clean is that they are ashamed or fear the consequences will be too severe.

Talking about money is difficult, but the benefits pay out in the long run. It is also never a good idea to try to disguise one's financial picture during a divorce. Such tactics rarely work and will likely create problems in the future.

Source: CNN Money, "Financial infidelity: Catching a cheating spouse," Jessica Dickler, 29 June 2011.