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    Is Your Partner Cheating On You Financially? 31% Admit Money Deception

    A new survey finds that one-third of Americans admit lying to their spouses about money, resulting in devastating effects to the relationship.

    By Jenna Goudreau

    Financial infidelity may be the new normal. In a recent survey, one in three Americans (31%) who have combined their finances admitted lying to their spouses about money, and another one-third of these adults said they'd been deceived.

    The online poll, commissioned by ForbesWoman and the National Endowment for Financial Education (NEFE) and conducted by Harris Interactive, surveyed 2,019 U.S. adults from December 17 to 21. Among both offenders and victims, the leading money crimes were hiding cash, minor purchases and bills. Meanwhile, a significant number of people admitted hiding major purchases, keeping secret bank accounts and lying about their debt or earnings.

    "A third of the population admits to not being honest with their spouse," says NEFE chief executive Ted Beck. "That is a big number. These indiscretions cause significant damage to the relationship."

    10 Red Flags Your Partner Is Lying About Money

    Among couples impacted by financial infidelity, 67% said the deception led to an argument and 42% said it caused less trust in the relationship. Perhaps most alarming, 16% of these respondents said the money lie led to a divorce and 11% said it led to a separation.

    "Betrayal regarding money can be just as painful and damaging as other kinds of cheating," says Tina Tessina, psychotherapist and author of Money, Sex and Kids: Stop Fighting about the Three Things That Can Ruin Your Marriage. When a partner is caught concealing huge amounts of debt or involved in money-related addictions, the result can be a "total loss of trust, feelings of betrayal and destruction of the relationship."

    Seattle-based Theo Pauline Nestor, 49, learned this the hard way and eventually published an account of her experience, How to Sleep Alone in a King-Size Bed. She and her husband were happily married for 13 years until one day in 2003 when she noticed a curious dip in their joint checking account. When she confronted her husband, a real estate agent with unpredictable hours, she discovered he'd been secretly gambling for years. Not only had he opened several credit cards without her knowledge, he'd racked up thousands of dollars in debt.

    "It was terrifying," she recalls. "My biggest fear was that we would lose our house."

    The couple had two children, ages five and nine, and Nestor made a modest salary as a part-time writing instructor at the University of Washington. Ultimately, fearing for her children's future and bewildered by the long-term lies, she filed for divorce.

    Love And Money: Step-By-Step Guide To Financial Unity


    "It felt like finding out about an affair," says Nestor. "But when your spouse cheats sexually, you can walk away and it's gone. When they cheat financially, you have to live with the effects for however long it takes to dig out of the hole."

    According to the survey, over half of all financial cheaters admitted hiding cash (58%) or minor purchases (54%). NEFE's Beck says this is particularly concerning, as small lies often compound over time to become increasingly larger and more harmful deceptions. Of the offenders, 30% have hidden a bill, 16% have hidden a major purchase, 15% had a secret bank account, 11% lied about their debts and another 11% lied about the amount of money they earned.



    None of this surprised Nancy Chemtob, founding partner of matrimonial and family law firm Chemtob Moss Forman & Talbert LLP in New York, who says she's seen it all. According to the survey, money deception occurs equally across income levels-no matter if you're earning $30,000 or $300,000. Chemtob only accepts clients with a net worth of $5 million or more and has observed that having more money only means more elaborate schemes.

    Example A: she once worked with the owner of a hedge fund who secretly spent millions on a mistress. In five of their 10 years of marriage, his wife had no clue that he was spending over $20,000 a month on the other woman, ultimately buying her a house, car and extravagant jewelry.

    10 Red Flags Your Partner Is Lying About Money


    Another of her clients is in her 30s, remarried and has a son from a previous marriage, Chemtob says. Three years ago, she lied to her new husband that she wasn't receiving child support. She was. Now he pays for the child's expenses and private schooling while the woman stashes about $7,000 a month in a hidden bank account.

    In one of the most extreme deceptions Chemtob's come across, a 20-something woman fabricated her entire financial history. The original lie happened on the first date. Because he was very well-educated, successful and high-earning, she didn't think he'd like her when she told him she didn't have a degree or a job. She lied, saying she had her masters and a salaried position.

    The woman continued the fib while they dated and into their eventual marriage. When he left home for work, she left too. When he returned home in the evening, so did she. Because he was so successful, he paid for everything and never noticed that she didn't have an income. Eventually he did discover the truth and promptly filed for divorce.

    Click here to keep reading.

    See also:

    10 Red Flags Your Partner Is Lying About Money


    In Depth: Why Couples Lie About Money

    Love And Money: Step-By-Step Guide To Financial Unity

     

    307 comments

    • Vanessa  •  1 year 1 month ago
      It's the LOVE of money that is the root of all evil. FYI.
    • Mikael  •  1 year 4 months ago
      The best way of preventing and avoiding situations such as these is simple. Don't get married.Problem solved. See how simple that was. By the way, marriage is so overated. Too many headaches, too many bills and too many damm problems.
    • angela  •  1 year 4 months ago
      My husband financially cheated on me for years. He arrived home from work before me every day and would delete messages from bill collectors and hide the mail. I finally discovered how bad things were when a strange woman knocked on my door while I was preparing for a family party and offered to buy my house to prevent it from going into foreclosure. Even then, my husband denied it, saying it was a mixup, blah, blah, blah. Then he calls me at work a week later and tells me I need to take off work the next day because we had to meet with an attorney and file bankruptcy. Seriously, if I could have thought of a way to kill him and get away with it, he would be a dead man right now. I was so angry, betrayed, terrified, and hurt. I even told him that I WISHED he had cheated on me with another woman, because I thought it would have been less painful.But we learned A LOT from that experience.

      We did file a "wage-earners" plan type of bankruptcy. Our debt was consolidated and negotiated and we paid it off through a trustee. That allowed us to keep our house. We had to get rid of all our credit cards, and if we couldn't pay cash for it, we didn't get it. I had to take some responsibility for sticking my head in the sand and allowing him to handle all of the bills and money. In the back of my mind, I knew something was not right, but I didn't know how to get the truth out of him. He was afraid to tell me because he didn't want to tell me "no" if I wanted something. Mind you, we weren't living high on the hog, or taking awesome vacations. We were just living irresponsibly and it caught up with us.

      In the end, I am grateful for the experience. It was very rough for a few years, but we had to get through it together, because we couldn't even afford to get divorced! Ha! We are so much stronger and smarter for it now. I don't agree with all the comments to keep money separate, because if you're married, it won't matter. You will both be responsible for the debt. If there is lying about money, it's a symptom of a much bigger issue.
    • GingerGina  •  1 year 4 months ago
      Why are people married to people they can't trust and that doesn't have what's best for their family in mind? My husband and I know exactly what the other makes each week when it is direct deposited into our joint account. Makes it much easier to keep a room over the bed we share, just as we share everything else in our life. I though that is what marriage was, an equal partnership.
    • RonB  •  1 year 4 months ago
      I had a SO in 2007-8 and 9, She was the love of my life and i soon was paying her school loan, for her one hr face lift, her spa's then when the bottom fell out in 2008-9. I found out the truth, she was living on my money and stashing her deceased husbands SSI of 1799.00 a month in a secrete account and when I was off at work, she was off playing and partying , there is more, however were talking about money deception. I personally carry 200.00 in cash in my wallet for emergency, she knew it was there and if i used it i replaced it. Soon after MY money was gone she was too. Cleaned me out of all things of $$$ value in my home and left me paying the bills, loosing my home and more..
      So i feel its more the woman that will have the hidden bank account (if only for a perceived rainy day or a way to buy her SO a gift with out them knowing what was paid) but Disclose it please. Remember the Truth will set you free.
    • Noneya  •  1 year 4 months ago
      I find myself lying to my wife about small things. Right now I work and go to school, and up until a month ago my wife just went to school. She is having a hard time finding a job so I have been the only one bringing in money for quite a while, and I am fine with that. The problem comes in when I try to buy small things for myself, such as swing through the drive-thru instead of packing a lunch to work or even just renting a $1 movie for us to watch together and she jumps all over me. I understand her point of view because we don't have a ton of money but at the same time I feel like I deserve a small vice every now and then.

      So, if I Redbox a movie I will sometimes make up a lie and say I was emailed a code for a freebie or if I get fast food I will make sure I eat it and get rid of the evidence before she finds out. Yeah, I am lying to my wife, but they are small lies and I honestly think our marriage is better for it.
    • Phil  •  1 year 4 months ago
      I broke up with my girlfriend after she was unemployed for over a year - some people say that I was coldhearted but just about EVERY woman I ever knew would leave a guy who was unemployed. What's the deal?
    • Chris S  •  1 year 4 months ago
      My ex wife was stealing from me from the day we got married. I was giving her 500 dollars a month to pay household expenses and her gas. She was in turn supposed to put her small weekly paycheck into our joint savings account. After 4 and a half months I had not seen a bank statement and just went to the bank to see what was going on. I discovered that she had been putting my 500 dollars in her own savings account and still paying the bills as she had been doing before we got married. I even found out she had used some of the money to start another savings account at a bank that isn't not local. I confirmed this by my own bank providing me with the transaction records. We had dated for 5 years and I never would have dreamed she would steal from me. I hope the "black widow" has a good excuse for what she did because she will have to answer for it one day. God doesnt miss a thing.
    • Ebrahim  •  1 year 4 months ago
      The western civilisation become worse by their living style. Islamic religion teaching is the best for the family. Please see the video about American Airforce major Dr Laurence Brown , eye specialist who embraced Islam and his comments. In Islam wife shall be a house wife. Husband earns and his duty is to look after his wife and chidren. It is unlawful for the Husband to use his wife's earning.Sympathy, harmony.humanity, love, responsiblity, generosity,and peace found only in Islam. Seek for it.
    • HanaB  •  1 year 4 months ago
      I dated a man who lied about his income .... I liked him from the beginning because he was funny, but would think twice about dating someone who is not paying his bills and has tons of debt. It filtered to other areas of his life and once I got to know him I could not run fast enough.
      However these are not things to discuss on the first, second or 50th date,,,,oh well, lesson learned. Now he is back on dating website lying about his income and his age....good luck to him!
    • Lorena  •  1 year 4 months ago
      my money is mine , his money is his - bills down the line equally - as long as the bills get paid why worry- that works -try it
    • dave  •  1 year 4 months ago
      jk
    • dave  •  1 year 4 months ago
      Of course I have to have a hidden fund--what am I suppose to pay the hooker with a check???
    • Peg  •  1 year 4 months ago
      Many of the comments I've seen on this article state to have separate bank accounts, separate money... what happens if there is only one source of income and the one earning it is the one who is hiding the fact that ALL of the "extra" is being spent on frivolous things?
      Most people I've met don't go into a marriage these days with the intent of living in a single-earner household but yet that's exactly what has happened in these last couple of years. "Spend what you want from your own bank account" simply doesn't work anymore when that happens and if that's your habit, the lies may (are likely to) start.
    • none  •  1 year 4 months ago
      I would have loved to have had financial teamwork with my husband - but as it is, he is VERY lucky that I contributed to a superannuation scheme my entire working life.
      Somehow the $450 difference between his take home pay and what he contributed to household expenses equalled no savings.
    • SOB  •  1 year 4 months ago
      Money is the root of all evil but when you lie to your spouse about it you may as well start packing your bags. Lies are lies and a marriage or relationships with lies are ones without trust. Without trust what's left to build on? If you're in a relationship that is fostered on deceit, get out while you can still afford it.
    • Independent Conservative  •  1 year 4 months ago
      A friend was moving too quickly into marriage. I told him to slow down. Shorty after the ceremony she showed up, without communication, with the most expensive VW from the show room. I suggested he insist she return it. The short marriage ended with her demanding 1/2 of the increased equity in the house. I told him that the house was bought as a home and not an investment. Rather than pay attorneys he copitulated. We all know where that huge equity went.
    • Michael G  •  1 year 4 months ago
      you people are idiots
    • Steve  •  1 year 4 months ago
      Guess love isn't worth much, eh?
    • Max  •  1 year 4 months ago
      Tell me about it!! Number 1 modern marital problem.

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