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What is financial infidelity?

By , on Tuesday November 11, 2025 at 10:31 am

Financial infidelity happens when one partner hides, lies about, or secretly controls money within a relationship. It could be as simple as keeping a secret bank account, or as serious as hiding assets during divorce proceedings.

In today’s world, where digital banking makes managing money easier than ever, financial infidelity is becoming increasingly common, and increasingly damaging. It can break trust, create emotional distress, and in some cases, have legal and financial consequences.

Common questions about financial infidelity

Q: What are examples of financial infidelity?
A: Secret bank accounts, hidden loans, undisclosed spending, or concealing assets during divorce.

Q: Can financial infidelity affect divorce settlements?
A: Yes. Hiding assets or misleading the court about finances can lead to penalties and changes to financial orders.

Q: What should I do if I suspect financial infidelity?
A: Gather information, seek legal advice, and avoid confrontation until you understand your rights and options.

What does financial infidelity look like?

Financial infidelity can take many forms, some subtle, others deliberate. Common examples include:

  • Keeping a secret credit card or bank account.
  • Lying about income or bonuses.
  • Hiding debt or gambling losses.
  • Transferring assets to friends or relatives without telling the partner.
  • Undisclosed investments or cryptocurrency holdings.
  • Spending large amounts without explanation.

While not all financial secrecy is malicious, sustained or intentional deception often signals deeper relationship problems, and, in some cases, legal risks.

Why financial infidelity happens

People may hide money or debt for different reasons:

  • Fear of judgment or conflict.
  • Trying to maintain independence or control.
  • Addictive behaviours like gambling or shopping.
  • Preparing for a potential separation.

In family law, we often see financial infidelity surface when relationships break down, particularly during divorce or financial disclosure stages. That’s when one partner discovers assets they didn’t know existed or notices sudden changes in spending habits.

The emotional impact of financial infidelity

The betrayal caused by financial infidelity can feel as painful as emotional or physical infidelity. It damages trust, creates anxiety about security, and can leave one partner feeling vulnerable or manipulated.

Couples counselling may help rebuild trust where the deception was minor or unintentional. However, if deceit runs deeper, or involves significant sums of money, legal advice is often essential.

In these situations, it’s important to seek guidance from an experienced family lawyer, Woolley & Co, Solicitors can provide confidential, practical advice to help you understand your options and protect your financial position. Call 0800 321 3832 or complete our online form to request a call back.

How financial infidelity affects divorce and separation

When a couple divorces or separates, each person must make full and honest financial disclosure. This means revealing all income, assets, debts, pensions, and investments.

If one party tries to hide or understate their finances, it is considered dishonest disclosure. The court takes this very seriously.

Consequences can include:

  • The financial order being set aside (cancelled).
  • The dishonest party being ordered to pay costs.
  • Possible criminal consequences if there is evidence of fraud.
  • Damage to credibility, making future negotiations more difficult.

Financial infidelity doesn’t just harm relationships, it can lead to real legal and financial penalties.

How to spot the signs of financial infidelity

You may suspect financial infidelity if you notice:

  • Unexplained withdrawals or spending.
  • Mail or bank statements being hidden.
  • Sudden secrecy around money or passwords.
  • Changes in income or work without explanation.
  • Evasive answers when you ask about bills or accounts.

If you suspect something is wrong, don’t rush to confront your partner immediately, instead, gather information carefully and seek confidential advice from a solicitor or financial professional. Call 0800 321 3832 or fill in our online form to arrange a friendly, confidential chat with one of our experienced family law specialists.

Protecting yourself against financial infidelity

If you’re in a relationship where money isn’t transparent, take proactive steps:

  1. Know your rights. In marriage or civil partnership, both parties have obligations to be open about finances.
  2. Keep records. Save emails, statements, and evidence of spending.
  3. Check joint accounts regularly and set up alerts.
  4. Review shared debts – you may still be liable even if your partner created them.
  5. Get legal advice early if you’re separating or suspect assets are being hidden.

At Woolley & Co, Solicitors, our family law experts regularly advise clients dealing with hidden assets, non-disclosure, and financial manipulation during divorce and separation.

Financial infidelity and the law

While “financial infidelity” itself isn’t a criminal offence, hiding assets during divorce proceedings or providing false disclosure is a serious breach of family law duties.

Under Part 25 of the Family Procedure Rules, parties are required to give full and frank disclosure. If one person lies or conceals money, the court can reopen the case and change the financial outcome.

In extreme cases, the court may impose penalties for contempt of court.

Rebuilding trust and moving forward

Financial infidelity doesn’t always end a relationship, but rebuilding trust takes time and openness. For some, counselling or mediation can help. For others, separation is the healthiest option.

If you’re separating, being open about money from the start, and seeking professional advice, is the best way to ensure fairness and avoid costly disputes later.

How Woolley & Co, Solicitors can help

Whether you’re worried about hidden money in your relationship or dealing with financial non-disclosure in a divorce, Woolley & Co, Solicitors can help.

Our experienced family lawyers offer expert advice on financial disclosure and hidden assets, guidance on divorce settlements and financial orders, and support in complex cases involving trusts, businesses, or overseas assets. We provide confidential, clear advice to help you protect your financial future. Call 0800 321 3832 or complete our online form to speak with a specialist family lawyer.

Kate Brooks
Family law solicitor

Blog Author - Kate Brooks

Kate BrooksKate Brooks

Kate is a family solicitor with Woolley & Co, based in Market Harborough, Leicestershire, covering all aspects of divorce and separation.

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