Divorce Finances: Should You Open and Maintain a Secret Account?

 Posted on December 00, 0000 in Divorce Finances

Both marriage and divorce create a wide variety of financial scenarios that impact both spouses, as well as children, over the course of months and years. Some believe the best way to maintain financial security, even before a divorce is considered, is to keep a secret account with funds of which your spouse is not aware.

Positive Aspects of a Secret Fund

Husbands and wives may find that opening a separate account apart from any joint accounts becomes a necessity. Some pros for doing so include:

• A “secret” account can be both financially and emotionally empowering. Some people need to maintain an element of individuality that marriage may not otherwise permit.
• Women’s advocates insist maintaining financial independence is important. Should a divorce become imminent that independence may be beneficial.
• You, and you alone, control how the funds of this account are spent.

Some Arguments Against

Regardless of how empowering or independent a secret bank account may make the holder feel, the idea of opening and keeping such an account must be approached with great consideration and delicate care. There are negative aspects associated with keeping a secret account. Some of those include:

• Even if it is not intended to do so, secrets have been known to ruin marriages. Should your spouse learn of the secret fund, it could lead to other accusations. The snowball effect could ensue and result in a contentious divorce.
• You can be accused of hiding assets by a divorcing spouse. If divorce proceedings are opened, it is important that the “secret” account become part of the record.
• You risk facing a charge of asset dissipation.

What Is Right for You?

If, through the course of your marriage, you determine that opening an account without the knowledge of your spouse is the right thing to do, then it might be a good idea to keep detailed records of where the funds originate and for what they were used. For example, paying for groceries or medical costs may be looked upon more favorably by a judge than spa treatments or other personal luxuries.

Retain the Services of an Experienced Illinois Divorce Attorney

As you prepare for a divorce it is critical to invest in knowledgeable and experienced counsel. To ensure your rights and financial interests are protected take time to find the Aurora divorce and alimony lawyer that best suits your needs. The Law Offices of Matthew M. William, P.C., work to protect your financial future and create a situation that results in a final divorce decree that will not create a hardship for you and any dependents. Contact the office as soon as possible to schedule a consultation.

Source:

https://www.forbes.com/sites/jefflanders/2013/02/14/pros-and-cons-of-keeping-a-secret-fund-in-case-you-divorce/#597ceac812c3