Financial Infidelity in Relationships: How to Stop Hiding Financial Debt From Your Partner

Hiding financial debt from your partner is a form of financial infidelity which can be just as harmful as having a sexual affair. 

Keeping this secret can break trust with your partner, jeopardize your legal standing and ruin your shared relationship goals.

Financial Infidelity in Relationships

What Are the Potential Consequences of Hiding Financial Debt From Your Partner?

Let's look at the consequences in more detail:

• Erosion of Trust: Finding out about secret debt can cause a tremendous erosion of trust and feelings of betrayal. It can trigger relationship conflict or a breakup.

• Damaged Future Goals: Hidden debt takes away money that you and your partner would otherwise use to save for future goals, like a wedding, a new home or retirement.

• Credit Roadblocks: Hidden debt can prevent you and your partner from qualifying for apartment rentals, home mortgages or car loans.

• Legal and Joint Liabilities: If you co-sign for a loan or open joint accounts, your partner can become legally liable for the debt regardless of who spent the money.

Why Do People Hide Debt From Their Partner?

Secret spending or hidden debt usually occurs due to specific emotional and situational factors:

• Shame and Embarrassment: Feeling severe shame, guilt and embarrassment about past financial mistakes or current bad habits

Financial Infidelity in Relationships

• Fear of Confrontation: Worrying that a partner might judge you, get upset or call off a wedding or end the relationship

• Desire For Control: Wanting total independence or a financial fallback without answering to anyone

• Underlying Impulsive or Compulsive Habits: Masking debt that stems from hidden gambling, compulsive shopping or substance habits

What Steps Can You Take to Stop Hiding Debt From Your Partner?

There is no one-size-fits-all answer to this issue. What might be right for one person might not be right for another. 

You have to assess your situation and ensure that you are safe physically and emotionally before revealing secret debt. If you are in an unsafe environment where your partner might become physically abusive, you have to prioritize your safety. Depending upon your situaton, you might have to work with a domestic violence agency to develop your exit strategy before addressing financial issues.

For most people the following steps can be helpful:

• Own Up Before the Wedding: Don't let your partner find out about your secret debt through a rejected loan application or a surprise collection letter.

Financial Infidelity in Relationships

• Gather Concrete Information: Print and have available for your partner your credit reports and a clear list of every single card, interest rate, minimum payment and other relevant information.

• Draft a Repayment Strategy: Present your partner with the truth along with an actionable plan as to how you plan to pay off your debt--whether this includes getting a second job, strict budgeting or whatever other positive steps you need to take.

• Choose a Calm Setting: Pick a quiet time when you and your partner will have privacy to talk without being interrupted. Don't bring it up during an argument or in an offhand way.

• Avoid Defensiveness: Take responsibility and don't blame your partner or others for hiding the debt.

• Acknowledge the Betrayal: Validate your partner's feelings including anger, shock, hurt, sadness or whatever feelings your partner might have. 

• Recognize That the Lie is Often More Damaging Than the Money Owed: Lies of omission where you don't reveal secret debt is still a lie. Assuming your partner wants to remain in the relationship, you will have to work to regain your partner's trust.

• Assume Responsibility For the Financial Burden: Make it clear that you consider this to be your financial responsibility to fix and it is not their responsibility.

What Kind of Professional Help Can Be Helpful?

• Financial Planner/Legal Advisor: Depending upon your situation, you might need a financial or legal professional to help you map out a financial strategy. A legal consultation can also help you to work on either a pre-nuptial or post-nuptial agreement to legally shield your partner from your liabilities.

• Couples Therapist: A licensed mental health professional can help you both to deal with the emotional fracture in your relationship after you revealed the secret debt. It's best not to avoid dealing with the psychological damage to the relationship because these  problems can harden into deep resentment and mistrust. A couples therapist's role would include:

• De-escalating and Creating Psychological Safety: The couples therapist would set communication boundaries to stop repetitive and toxic argument loops. They reinforce agreements against blame-based language, yelling or bringing up deception as a tool to weaponize for constant punishment.

Getting Help in Couples Therapy

• Managing Emotional Flooding: A high betrayal trauma often leaves the partner who feels betrayed in a state of hypervigilance and, at times, panic. The couples therapist can teach emotional regulation skills and implement structured pauses when sessions become overwhelming or unproductive.

• Validating the Deception Trauma: The clinical focus honors the hurt partner's pain. The therapist ensures that the secretive partner knows that the primary damage is the lying and the concealment--not just the missing money.

• Halting the "Trickle Truth": A major obstacle to healing occurs when the secretive partner admits to hiding a certain amount of debt at first and then, later on, admits that there was even more debt. This continuous drip of information re-traumatizes the betrayed partner each time.

Getting Help in Couples Therapy

• Investigating Each Partner's Relationships to Money: Using a therapeutic model like Emotionally Focused Therapy For Couples (EFT) the therapist helps the couple to look beneath the immediate problem of the debt to examine family-of-origin patterns, childhood financial insecurity or feelings of lack of autonomy in the current relationship.

• Addressing Core Drivers of the Secretive and Deceptive Behavior: The therapist guides the secretive partner to look inward at their capacity for deception. The therapist explores whether the secretive behavior was driven by intense shame, a fear of conflict, severe avoidance or compulsive spending behavior.

• Addressing Other Relevant Issues: Once the air has been cleared, the couples therapist can help the couple to develop verified openness in their relationship. This often involves sharing login information, co-managed budget spreadsheets and notification triggers for banking applications. It also involves setting financial boundaries where the couple establishes a pre-agreed upon threshold that would require a conversation before money is spent. In addition, once trust has been regained, the clinician helps the couple so that they don't remain in a permanent parent-child dynamic where one partner acts like the disciplinarian and the other partner acts like the untrustworthy child. 

About Me

I am a licensed New York psychotherapist, hypnotherapist, EMDR, AEDP, EFT (for couples), IFS Parts Work Therapist, Somatic Experiencing and Certified Sex Therapist.

Over the years, I have helped many individual adults and couples.

To find out more about me, visit my website: Josephine Ferraro, LCSW - NYC Psychotherapist.

To set up a consultation, call me at (917) 742-2624 during business hours or email me.

Also See My Articles:

Talk to Your Partner About Money 

What is the Connection Between Secrets and Shame? 

Toxic Family Secrets 

What is the Difference Between Privacy and Secrecy in a Relationship? 

Relationships: Being Dishonest About the Financial Aspects of Your Relationship

In general, money is a big issue in many relationships.  For many couples personal finances are a point of contention when they either don't agree about financial issues or one or both of them is lying or keeping secrets about money.  In addition, money is often symbolic of power and it can become part of a power struggle in a relationship (see my article: Talk to Your Partner About Money Before You Get Married or Enter Into a Committed Relationship).

Financial Infidelity in Relationships

A January 2022 survey by US News & World Report revealed that as many as one in three couples in the US are dealing with financial infidelity.  Other surveys indicate that it's a growing problem in relationships. 

Of the couples who were dealing with financial infidelity, 76% said it had a negative impact on their relationship and 10% indicated that it led to a divorce (see my articles: Talk to Your Spouse About Money and Are You Arguing About Money in Your Relationship?).

What is Financial Infidelity?

Since it's such a big problem, let's start by defining what financial infidelity means:  Financial infidelity occurs when one or both partners in a relationship, who have some form of combined income, engage in financial behavior they know their partners would disapprove of and they lie or keep it a secret (see my article: Coping With Secrets and Lies in Your Relationship).

Financial infidelity includes, but is not limited to the following activities:

• Hiding debts, including credit card debt, loans, gambling debts and so on
• Hiding purchases of big gifts for friends, relatives, extramarital affairs or others
• Making other big purchases without letting a partner know
• Lying about how money was spent
• Lending large sums of money to friends, relatives or others without letting a partner know (see my article: Are Your Relatives Financial Problems Affecting Your Relationship?)
• Engaging in secret shopping
• Overspending as a maladaptive way to cope with emotional issues and keeping it a secret (see my article: Learn to Stop Overspending as a Way to Cope With Discomfort).
• Gambling in secret (casinos, card games, lottery tickets, etc)
• Keeping secret bank, credit card or payment accounts 
• Engaging in secret discretionary purchases (vacations, spas, clothing, jewelry and other expenses)

Why Do People Engage in Financial Infidelity?

Talking about money can feel uncomfortable or shameful.

Financial Infidelity in Relationships

In addition, many people who enter into a relationship where they are combining income (or a certain portion of income) never talk about money beforehand.  

There are many reasons why people engage in financial infidelity, including:

• An Attempt to Maintain Autonomy:  Many people use money, consciously or unconsciously, as an attempt to maintain a sense of autonomy and reassert power in a  relationship.  They might not have learned how to be part of a couple and also be an individual at the same time so committing financial infidelity gives them a sense of independence (see my article: Growing as an Individual While You're in a Relationship).

• An Attempt to Avoid a Confrontation: This is the most common reason for financial infidelity. It often occurs because people don't know how to talk about these issues or they fear confrontation in general (see my article: Changing Maladaptive Coping Strategies: Avoidance).

• A Sense of Shame About Money: Many people grew up in households or in cultures where talking about money is considered shameful.  There might also have been secrets and lies about money (see my article: Toxic Family Secrets).  Many others feel so ashamed of their debt or expenses that they don't want their partners to find out about it.  If they are hiding debt, they might rationalize to themselves that they will repay the money before their partners find out about it (see my article: Shame is at the Root of Most Emotional Problems).

Signs of Financial Infidelity

• Unexplained large withdrawals from joint accounts
• The discovery of a secret bank or credit card account
• The discovery of a secret payment account, like Venmo or Paypal
• Larger than normal cash withdrawals
• Checks made out to cash
• Other unexplained expenditures

Vignettes 

The following vignettes, which are composites of many different cases with all identifying information removed, are common examples of financial infidelity that bring people into couples therapy:

Patty and Ed:

Six months after they got married, Patty found out that Ed was over his head in credit card debt when they were exploring the possibility of getting a mortgage and Patty obtained credit reports.  The credit reports revealed Ed's $20,000 debt, which he had never disclosed to Patty before they got married--even though they had attended pre-marital counseling which included discussions about personal finances.  

Financial Infidelity in Relationships

She wondered if there were other things he was hiding from her.  Ed said he knew she would discover the debt at some point, but he couldn't bring himself to tell her because he felt so ashamed of it.  Patty felt so betrayed that she asked Ed to move out while she thought about whether she wanted to remain in their marriage.  A week later, Patty agreed to allow Ed to move back in but only on the condition they attend couples therapy to deal with this breach of trust.  In their couples therapy sessions, Ed realized he tended to overspend as a way to boost his low sense of self worth.  Since they got married, he stopped overspending, but he was still struggling with low self confidence.  Over time, as they worked on their issues in couples therapy, Patty forgave Ed for not disclosing his debt before they got married.  They worked on the underlying issues in couples therapy as well as rebuilding trust.  Ed also started individual therapy to deal with low self esteem.  In addition, they sought help from a financial advisor so they could get their finances in order.

Alice and Bill: 

Alice and Bill were married for five years.  When they first got married, they decided to keep whatever money they had before the marriage separate and open a joint bank account for saving and big purchases.  Other than that, they didn't have a discussion about money before they got married.  One day when Alice was going through the mail, she inadvertently opened a letter addressed to Bill from a debt collection agency and she was shocked to read that Bill had a $5,000 debt which he never revealed to her.  

Financial Infidelity in Relationships

Later that night, Alice and Bill got into an argument about the debt.  At first, Bill was angry that Alice opened his mail--even though he knew it was a mistake.  By the next day, he admitted he had other financial accounts he never revealed to Alice because having these accounts gave him a sense of independence.  Soon after that, Alice and Bill entered into couples therapy to talk about the underlying issues in their relationship that led to this financial infidelity and they were able to work through these issues.  They also sought help from a financial advisor.

Bob and Tom:

Two years after they got married, Bob discovered an email addressed to Tom from a payment account that revealed $2,000 was transferred from their joint checking account to an unknown vendor.  When Bob confronted Tom about this expense, at first, Tom said he had never authorized this expenditure and it was a mistake.  

Financial Infidelity in Relationships

But when Bob asked Tom to contact the bank in front of him about this error, Tom balked.  Then, he admitted he was trying to hide that he was using a male escort service.  He thought he could replace the money before Bob noticed it was missing from their account.  He also knew Bob didn't check their accounts regularly.  When he heard Tom's explanation, Bob couldn't understand this because they had a consensual nonmonogamous relationship.  Their agreement was they could have sex with other people as long as they each knew about the other's sex partners and they didn't form emotional ties with these other individuals. They were both aware of the other people they each had sexual relationships with and it had never been a problem before.  Tom admitted that, in addition to the individuals he met up with at bars, which Bob knew about, he also had secret visits to see sex workers because it excited him to have this secret. Over time, he felt guilty about it, but then he felt too ashamed to tell Bob about it.  He said he was working on this issue in his individual therapy, but it was still a problem for him.  Two week later, Bob and Tom entered into couples therapy to work on the breach in their consensual nonmonogamous agreement and the financial infidelity.

Jane and Lilly:

Three years after they moved in together and they combined their finances, Jane happened to see a text flash on Lilly's phone while Lilly was in the shower.  The text was from Lilly's younger sister, Nina.  Jane was shocked to see the text from Nina, which was pleading for more money.  Lilly had never revealed to Jane that she was lending Nina money.  So, when Lilly came into their bedroom after her shower, she was caught off guard when Jane confronted her about the text. 

Financial Infidelity in Relationships

After stonewalling for an hour, Lilly admitted she lent Nina $3,000 from Jane and Nina's joint account because Nina was heavily in debt. Lilly said she felt too uncomfortable to tell Jane about it.  She admitted she knew that Jane never looked at the bank statements and she hoped to replace the money before Jane found out.  Jane was outraged. She knew Lilly had a hard time setting boundaries with Nina, but she considered this breach of trust to be serious enough to insist they attend couples therapy to deal with it as well as other underlying issues that led to this problem.  Over time, their relationship improved while they were attending couples therapy, and Lilly learned to set limits with her sister.

How to Avoid Financial Infidelity

• Talk About Finances Before Getting Married or Entering Into a Committed Relationship Where You Will Be Combining Income:  The best way to avoid financial infidelity is to come clean about finances before you enter into a serious relationship.  Although it might feel uncomfortable at first, you will avoid problems later on (as shown in the vignettes above).

• Reveal All Finances to Your Partner: Whether you decide to combine all or part of your finances, reveal all aspects of your finances to your partner.  All accounts should be open and accessible and financial transactions should be transparent to both people.  In addition, have regular discussions about money.

• Seek Help in Therapy to Deal with the Underlying Emotional Issues: Whether you are hiding aspects of your finances or you are tempted to do so, deal with the underlying issues in individual or couples therapy.  Shame is a major underlying issue when it comes to money, which can be complicated by a family history of financial secrecy or discomfort with talking about money.  Fear of confrontation is also the most common issue with regard to financial infidelity.  It can be difficult to own up to this problem, but dealing it with early in your relationship can avoid bigger problems in the future (see my article: Learning to Trust Again After a Betrayal).

About Me

I am a licensed New York City psychotherapist, hypnotherapist, EMDR, AEDP, EFT and Somatic Experiencing therapist.

I work with individual adults and couples and I have helped many clients to deal with the underlying issues that contribute to financial infidelity.

To find out more about me, visit my website: Josephine Ferraro, LCSW - NYC Psychotherapist.

To set up a consultation, call me at (917) 742-2624 during business hours or email me.

Talk to Your Spouse About Money

In my prior post, Talk to Your Fiance About Money Before You Get Married, I recommended that people talk about money before they get married. Whether you started out doing that or not, when you're in a committed relationship and sharing a home, you really need to be able to talk to your partner about money.

Talk to Your Spouse About Money

As a couples counselor, I see many people who come to marriage counseling due to serious conflicts about money. It's one of the major reasons why people come for treatment.

There are numerous reasons why couples have conflicts about money. Here are some of the major reasons and some tips on how to overcome these problems:

No Financial Plan:
Many couples enter into their marriages without a common understanding between them about how they want to handle their finances.

Talk to Your Spouse About Money

Many people assume that their partners feel the same way that they do about money. However, this is often not the case. Couples need to come to an agreement about short-term and long-term financial plans. There should be no secrets about money. If a couple needs to make a major purchase, they need to talk it over together first.

Otherwise, if one person just goes ahead and makes a major purchase without consulting with his partner, this can often lead to fights about money. Or, if one of them has a secret bank account, sooner or later this information will come to light and this will also cause significant problems. Also, either of these issues would be indicative of larger underlying problems in the relationship that go deeper than money problems.

No Understanding About Each Partner's Role Regarding Money:
There needs to be an understanding about who is overseeing the couple's finances. This doesn't mean that it must be a rigid role and that these responsibilities cannot be shared or rotated every so often.

However, at any given time, the couple needs to agree as to which one of them is handling the various aspects of their finances, such as handling the checking account and paying the bills. Sometimes, one partner is better at it than the other and prefers to do it. This is fine--as long as each partner is completely knowledgeable about all aspects of their finances and would know how to handle them or where to find information in an emergency.

Avoid Getting Into Power Struggles About Money:
Often, when couples get into fights about money, it becomes a power struggle between them. Couples need to learn to communicate about money in a way that is respectful.

Talk to Your Spouse About Money:  Avoid Getting Into Power Struggle About Money

As I mentioned in a prior post, it's better to speak from your own experience ("I feel upset when you pay the mortgage late") than to be critical or verbally abusive ("I can't believe that you were so stupid that you forgot to pay the mortgage this month"). No cursing. No put downs. No hurling "dirty laundry" at your partner. Stick with the discussion at hand. If it becomes too heated, take a break and get back to it when you're both calm again.

Having long-term financial plans that you are both working on together can bring you and your partner closer together as you see progress over time towards your goals.

Getting Help in Therapy
If you and your partner are fighting about money and you're unable to resolve it between you, you could benefit from marriage counseling.

I am a New York City psychotherapist and couples counselor in NYC. To find out more about me, visit my web site at Josephine Ferraro, LCSW - NYC Psychotherapist.

Feel free to call me at (917) 742-2624 during business hours or email me to set up a consultation.