Financial Infidelity

AAA

DEFINITION of 'Financial Infidelity'

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. Another common example is when one partner makes large discretionary expenditures without discussing the matter with their partner.

INVESTOPEDIA EXPLAINS 'Financial Infidelity'

Money can be a big point of contention among couples, so it is important for each partner to be open about his or her financial situation, expenditures and attitudes toward money. A good idea is to go over both partners' financial pictures before combining finances. Also, setting up a mutually agreeable system for handling expenditures can help avoid many fights down the line. For instance, many couples set up an allowance system, which allows each partner to spend a set amount each month without have to consult the other. This allows for partners to maintain part of their financial independence while still working toward mutual financial goals.

RELATED TERMS
  1. Common Law Property

    A system used by most states to determine ownership of property ...
  2. Postnuptial Agreement

    A contract created by spouses after entering into marriage that ...
  3. Marital Property

    A U.S. state-level legal distinction of a married individual's ...
  4. Uniform Premarital Agreement Act

    A regulation that allows the parties of a premarital contract ...
  5. Community Property

    A U.S. state-level legal distinction of a married individual's ...
  6. Marital Trust

    A fiduciary relationship between a trustor and trustee for the ...
RELATED FAQS
  1. When am I considered "married" for tax purposes?

    You are generally considered married for tax purposes as long as you were married as of the last day of the year, regardless ... Read Full Answer >>
  2. Does marrying someone with bad credit affect my credit score?

    A credit rating is an assessment of an individual's creditworthiness. This evaluation is based on an individual's history ... Read Full Answer >>
Related Articles
  1. Retirement

    Become A Certified Financial Divorce Analyst

    Use your financial knowledge to help people preserve their financial integrity after a failed marriage.
  2. Budgeting

    You Can't Live On Love

    If your head is in the clouds, check out this down-to-earth financial advice for couples.
  3. Retirement

    Divorcing? The Right Way to Split Retirement Plans

    Mishandling how you define and allocate retirement-plan assets in a divorce can cost you plenty in taxes and aggravation. Here's how to do it right.
  4. Retirement

    Marriage, Divorce And The Dotted Line

    Does signing a prenuptial agreement put your marriage on shaky ground, or is it just smart planning?
  5. Budgeting

    Get Through Divorce With Your Finances Intact

    Find out how to split your finances without coming up short.
  6. Options & Futures

    Combining Credit For A Happy Financial-Ever-After

    A couple's finances may not always be a match made in heaven. Find out when to say "I Do".
  7. Retirement

    Create A Pain-Free Postnuptial Agreement

    This marital contract can underline your love for each other - not undermine it.
  8. Retirement

    5 Things To Consider Before Late-In-Life Marriage

    Waiting to marry has become the norm, but do you know what to consider before saying "I do"?
  9. Investing

    $3M Question: Dream Wedding Or Dream Retirement?

    Wedding season is in full swing, though millennials may be putting off marriage more than previous generations, wedding budgets continue to rise.
  10. Budgeting

    5 Ways Your Partner Can Ruin Your Credit

    Financial disagreement is one of the top reasons couples split, and often after one person has ruined the other's finances.

You May Also Like

Hot Definitions
  1. Topless Meeting

    A meeting in which participants are not allowed to use laptops. A topless meeting organizer can also ban the use of smartphones, ...
  2. Hedging Transaction

    A type of transaction that limits investment risk with the use of derivatives, such as options and futures contracts. Hedging ...
  3. Bogey

    A buzzword that refers to a benchmark used to evaluate a fund's performance. The benchmark is an index that reflects the ...
  4. Xetra

    An all-electronic trading system based in Frankfurt, Germany. Launched in 1997 and operated by the Deutsche Börse, the Xetra ...
  5. Nuncupative Will

    A verbal will that must have two witnesses and can only deal with the distribution of personal property. A nuncupative will ...
  6. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!