Financial Infidelity is not exclusive to ultra rich couples like Kayne West, and Elon Musk.
Definition of Financial Infidelity. Similar to romantic infidelity, financial infidelity is when a partner deliberately chooses not to tell the truth about income purchases or debt.
A survey in January by US News & Report demonstrates how widespread “financial infidelity” is. Some 30% of couples questioned by researchers say they experienced lies or told in their relationship. The number one lie is secret purchases (31%), followed by hidden debts (28%) and dishonesty about income (23%).
Here at Vengerick Art a common question we receive from clients. “What is a safe legal way to hide money and assets from my spouse or mistress.” We offer the highest client services, and do not judge.
With divorce rates around 50%. Vengerick Art knows many people are asking questions about their spouses “financial infidelity”. Therefore we offer this article to help anyone suspicious of their partner “financial infidelity”. Also possibly you need to hide money from your spouse to protect yourself .
First the disclaimer. This article is for entertainment purposes only. Thus Vengerick Art is not endorsing breaking any laws. For example hiding money in a divorce proceeding is illegal in the court of law. However using this information to prepare for the possibility of divorce in the future is completely acceptable. Moreover you must consult your lawyer for any legal advice. In other words you can not hold Vengerick Art responsibly for any actions you take based on this article. Now that the legal stuff is out of the way.
What is Financial Infidelity?
The traditional definition definition of financial infidelity is when a married couple with shared finances are dishonest with one another about debt or income. However we must expand on this definition based on our experiences.
What is marital property?
Marital property. Generally defined as anything worth monetary value, acquired during the course of a couple’s marriage. Some items can be separated. For instance, the court may award to either spouse the household goods. Such items could include family heirlooms, antique furniture or valuable artwork.
Lying about money is not reserved for married couples. One must include same sex partners, mistresses, and couples that live together.
There is endless examples of financial infidelity. For example, one spouse is getting and using credit cards that the other spouse knows nothing about.
Another common situation is one spouse will hide income from the other. Hiding income is often motivated by the possibility of future divorce. One spouse usually has a separate hidden bank account, or simple stashes large amounts of cash from the other spouse.
These are only a few of the examples of hiding assets from a spouse. Furthermore hiding money can be very sophisticated as we will explore.
Financial Infidelity The Art Of Hiding Money 5 Secrets
1. Reasons Spouse Lie About Money
Some of you may ask, “why in the world hide financial information from a spouse.” In our experience this is not an easy question to answer. People have very good reasons to hide financial information from a spouse. For instance we work with clients safe guarding money and assets from a possible divorce or secret lovers. It is shocking how many mistresses resort to blackmail when they do not get what they want.
Another popular reasons for a spouse to lie about finances is the amount of debt they rack up. Especially secret debt in credit cards during the marriage.
Notably The most dangerous Financial Infidelity is the mistress or girlfriend on the side. Affairs of this level are 99% committed by the husband. The husbands that choose to keep financial secretes from the wife, and girlfriend, is a double edge sword.
In our opinion financial infidelity causes more pain and suffering than cheating. Most often financial infidelity has even more lies than the simple cheating. For example the husband went to Vegas drinks too much and sleep with a stripper. That is cut and dry compared top the discover of financial deception in a marriage.
2. Financial Infidelity, By The Numbers
Men are more likely than women to confess to financial deception. While we do not have enough data to prove why men confess more than women. Men commit financial deception more often 47 percent vs. 39 percent.
‘Hell hath no fury like a woman scorned’. More than likely once a women is mad there is no turning back, thus no reason for her to confess.
One of the most shocking numbers is the primary reason a spouse commits financial deception. The guilty spouse believe some aspects of finances should remain private (38 percent). Not to go out on a limb here. But if 50% of marriages end in divorce and almost 40% of spouses admit to financial infidelity, and hiding money. Logic says many more spouses need to financially prepare themselves for a divorce.
Let us back up, we may have jumped ahead. Important to realize is how a divorce impacts a man and women differently.
First the number one financial challenge facing a woman from divorce is money, followed by children. For example women on average experience a 20% decline in income after a divorce. On top of that 27% of women who left their marriages suffer from poverty. That is three times the amount compared to divorcee men.
Compared to men on average experience a 30% income increase post divorce.
Don’t let the billionaires fool you: Divorce can be financial ruin for most women. One study found that, on average, women’s post-divorce household income fell 41 percent. That is almost twice the decline men experienced.
The general thinking that men loose everything in divorce. While women get rich in divorce is, completely the opposite of the truth when you look at the data.
3. Unsophisticated Financial Deception
There is 2 types of financial deception in a relationship, unsophisticated and sophisticated.
Unsophisticated financial infidelity is less planned out and easier for a spouse to discover. For example a wife can swipe some cash from the saving account for those shoes that are on sale. Also a husband can get a new credit card to hide green fees and cigar spending.
Indeed stress and fear can lead to unsophisticated financial deception. When a spouse is in a stressful situation, usually at their own doing. Almost always bad decisions follow. Specifically we know an instance a husband was caught cheating. That same day he was caught, immediately made a large bank transfer to an offshore account.
While his wife did not know of this offshore account at the time. In his hast it still came back to haunt him. During divorce proceedings the wife lawyers went to great lengths to find the husbands hidden money. Guess what, they did find it. The transfer that took place the same day he was caught for cheating.
Thus having an offshore account is a sophisticated tactic. Protecting assets is only as smart as the person using the account. Consequently making it easy for his wife to find the transactions and secret offshore account.
Common ways unsophisticated financial infidelity can manifest in a relationship:
- Making significant purchases without telling your partner or lying about the true cost of purchases
- Accumulating debt without telling your spouse
- Lying about how much you earn and keeping a large portion of it to yourself
- Keeping secret bank accounts, credit cards, or loans
- Hiding cash from your spouse
- Hiding an addiction like gambling or shopping
- Taking money out of your retirement funds or investment plans without consulting with your spouse
4. Sophisticated Financial Deception
Sophisticated financial infidelity is usually complicated, well planned out and takes longer than unsophisticated.
Opening a new credit card, or new savings account, is easy. Therefore if it is fast and easy to setup, its even easier for your spouse to find.
Sophisticated financial infidelity is in place well in advance of a divorce or separation. For example the longer the accounts are active the more difficult for them to be discovered by a spouse.
This level of planing and complicity is usually reserved for the ultra wealthy and rich. But it is not exclusively for the just the rich. Anyone can plan for the worst case scenario. However most people are too busy with life to think about the worst case and then plan.
“By failing to plan, you are preparing to fail” -Benjamin Franklin
Examples of sophisticated financial infidelity.
- Offshore Company Accounts
- Offshore Trust
- Own Collectable Valuable Physical Assets (Art Jewelry Antiques)
- Over Payment Credit Card or Loan
- False Investments
5. The Art of Financial Infidelity
Everyone knows that divorce can be very ugly. When you add art into the mix, ugly turns into almost psychotic.
One of the most creative attempts at financial infidelity goes to Sue Gross. Sue is the ex-wife of billionaire bondsman Bill Gross. The couple has an extensive art collection and there was a great deal of arguments over a Picasso painting in the couples bedroom. The Picasso painting in the middle of the couples dispute 1932 “Le Repos” with a value of over $37 million.
Sue creates a genius plan in her eyes. So Sue sets out and paints a copy of the masterpieces herself. Sue then swaps her fake creation for the original Picasso. While not the most lawful means of acquiring artwork in divorce, it is certainly one of the most dramatic.
This makes fighting over who gets the espresso machine in the divorce seem like child’s play.
Art is not only for the ultra rich when it comes to financial infidelity and divorce. For example art offers many positives for the would be financially deceptive spouse.
Art, Not Just For The Rich
The rich buy art not just because it looks nice on their wall. The ultra wealthy have long used art for privacy and protection of their assets.
Art is a very powerful tool for the spouse that needs to hide money in the relationship. The reasons for one spouses need to hide money and assets from another spouse are endless. Thus art is a sophisticated and effective tool for financial infidelity if needed. A person does not need to buy a Rothko or Picasso either to leverage the benefits of art.
When art collecting is for privacy or to hide money it must be planned in advance. The use of art is sophisticated thus it is hard for any one to track transactions or the money. When a spouse takes the extra step of opening an offshore trust then its virtually impossible for a divorce judgment to touch the assets.
Financial Infidelity Has Reasons
Vengerick art always believes honesty is the best policy. However in todays world of untrusting and private marriages, spouses must protect themselves even in love. Unfortunately in our experience the spouse who does not plan ahead is the one that loses the most in divorce.
Additional article 3 Best Legal Ways, How To Hide Money and Assets, Divorce
If you would like to find out more how art can help protect your money and assets we are always here. In the event of a divorce, or your spouse already is financial deceitful feel free to contact us now. Learn how art can help safeguard your financial future in the event of divorce.