Divorce is a life-changing event that can take a heavy toll on anyone, especially women. Beyond the emotional pain, financial consequences can be just as difficult to bear. Protecting yourself financially during this difficult time is crucial for peace of mind and stability amidst the upheaval.
Speaking with Tracy Coenen, forensic accountant and the author of Find Me The Money: Take Control, Uncover the Truth, and Win the Money You Deserve in Your Divorce, has witnessed many attempts spouses have made to hide the money you deserve in a divorce.
Coenen wants to help women and protect them from this type of financial infidelity. Here are some red flags you need to be aware of:
1. Changes in behavior
The number one red flag indicating something is happening is when your spouse’s behavior changes. They may be spending more time at the gym, withdrawing from the relationship, and generally more secretive. This behavior is usually related to affairs; don’t ignore this red flag.
2. Denying access to money
When your spouse denies you access to money, this must be taken seriously. As a partner in the relationship, you should have equal access to the money and understand how it is managed. You must get involved if tax returns are filed without you seeing them or asking you to sign documents without explaining them. It is your money too.
3. Changes in spending
If you see increased cash usage or repeated money withdrawals, that may signal siphoning off money. Do your due diligence and investigate what is going on with your money.
If you suspect that any of these things are happening, there are ways that you can protect yourself. Start a conversation with your spouse about finances and get involved. You must regularly access your bank accounts, credit card statements, investment accounts and 401k, and any other financial asset you share. When you know your finances and what’s happening, it is more difficult for a spouse to hide the assets from you.
Coenen recommends seeking legal help, such as a divorce attorney, if you feel that assets are being siphoned and need counsel.
Even if you don’t suspect any false doing, being involved in your finances is always good. As a partner in your relationship, you should access finances as you wish. Understanding and managing your finances is crucial for a secure financial future.
As a partner in a relationship, it is essential to work hand in hand with your significant other in managing and accessing the finances. Participating in financial decisions and accessing your finances as you wish could create transparency and alleviate the possibility of future issues in the relationship.
No matter your income level, taking control of your financial future provides peace of mind and helps to ensure that you are financially independent.
The bottom line is that protecting yourself financially is always a good idea, as life is complex and sometimes leads us down a different path than planned. That’s why protecting yourself financially is important, particularly in divorce. Even if you think you and your spouse are in a solid, stable relationship, circumstances can change instantly- and sometimes, life takes us by surprise. By planning ahead and having a financial safety net in place, you will be better equipped to handle any unexpected surprises that come your way. After all, you deserve to feel secure in all aspects of your life, including your finances.
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