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? 

What is the Connection Between Secrets and Shame?

Secrets and shame are connected in many ways:

• Shame often drives keeping secrets.

• Keeping secrets creates more shame.

The Connection Between Secrets and Shame

• Shame and secret keeping often create an ongoing cycle of:
• Isolation
• Rumination
• Anxiety
  
• Guilt
• Negative self judgment
• Feelings of worthlessness
• Depression
  

How is Keeping Secrets Different From Maintaining Privacy?

While secrecy is often about concealing information due to shame or fear, maintaining privacy is about setting boundaries and choosing what information to share. 

Privacy usually doesn't involve shame or fear (see my article: Privacy vs Secrecy in a Relationship).

The Connection Between Secrets and Shame

A person who maintains privacy limits access to their life in terms of what they want to share, to whom and how much they want to share or not share.

The motivation for maintaining privacy is autonomy and personal space. An example of this is if a young child asks a parent how much money they earn and the parent knows the child can't handle this information in a responsible way, the parent might keep this information private until the child is mature enough to be responsible with it.

A person who maintains secrets is actively hiding something they feel ashamed about. Their motivation is to conceal something, avoid judgment or other negative consequences. An example of this is a husband who keeps a secret from his wife about gambling away his paycheck.

How Do Secrets Affect Relationships?

As previously mentioned, keeping secrets creates shame and shame can create secrets (see my article: Why Do People in Relationships Keep Secrets?).

• Fear of Being Judged as Having Flaws: People who keep secrets from loved ones often experience fear and shame that their loved ones will see them as flawed if they knew certain things about them. This might include their mental health status, financial struggles, addiction or similar issues.

The Connection Between Secrets and Shame

• Inauthentic and Emotionally Distant Relationships: Keeping secrets involves presenting an inauthentic self to loved ones. People who hide certain aspects of their life have to pick and choose what to tell their loved ones and keep track of what they have already told them. These secrets create emotional distance. Over time, as an individual continues to keep secrets, even if the other partner doesn't know what the secrets are, the emotional distance widens to the point where it can damage the relationship beyond repair.

• Betrayal and Mistrust: If the secret is discovered, the partner who discovers the secret feels betrayed and mistrusts for their partner. In many cases, depending upon the secret and the couple involved, a secret can ruin a relationship (see my article: Common Relationship Problems After Infidelity).

Clinical Vignette

The following clinical case is a composite of many cases with all personal information changed to protect confidentiality:

Jim

A big part of Jim's job was frequent travel around the country. He often had secret affairs while he was away and he never told his wife, Linda, about them because he considered them harmless. At the time, his attitude was: What she doesn't know won't hurt her.

Jim also liked the way he felt when he was able to attract women and have sex with them (see my article: The Connection Between Infidelity and the Need to Feel Desirable).

During a one week business trip to California, Jim met Tina at a hotel bar and they spent a few nights together. He told Tina he was married and he had no intention of leaving his wife. He said they could have fun together while he was in California, but their time together would never amount to more than that.

The Connection Between Secrecy and Shame

A month later Jim heard from Tina that she was pregnant with his child and she planned to have the baby. He told Tina that he wanted nothing to do with her or the child. He tried to convince her to have an abortion, but she insisted she would have the child. She also told him that, unless he gave her a large sum of money, she would contact his wife and tell her about the child.

Shocked and upset, Jim didn't know what to do. In the past, he had many affairs and there were never any consequences. After getting the call from Tina, he felt angry with himself for not using a condom and believing her that she was on a birth control pill. 

Jim didn't want to hurt Linda. He also feared that Linda would leave him if she found out about the affair and the pregnancy.  He felt deeply ashamed and, after thinking about it, he decided to ignore Tina's calls and keep the secret from Linda.

Although Linda didn't know his secret, she sensed something was off between her and Jim. She asked him numerous times if there was something wrong because she sensed he was emotionally distant from her. 

Jim denied there was anything wrong. Inwardly, his felt increasingly ashamed. He felt so awful that he thought he didn't deserve Linda. He developed anxiety, insomnia and ruminating thoughts about the end of his marriage.

A few months later, when Jim came home, he found Linda sitting on the couch looking very upset. His worst fears were confirmed when Linda told him she received a call from Tina about the affair and the pregnancy.  She told Jim she wanted to know the truth.

After much hesitation, Jim admitted that he had an affair and he heard from Tina that she was pregnant. He said that without a paternity test to confirm the baby was his, he wasn't sure if he was the father, but he feared that the baby might be his.

At Linda's request, Jim moved into a hotel. Linda said she needed time to think about whether she wanted to remain in the marriage. Although he had opportunities to have sexual affairs while he was at the hotel, he felt so depressed that he rejected women who approached him.

A month later, Linda said she wanted to attend couples therapy to see if their relationship could be salvaged. 

During couples therapy Jim admitted to having numerous affairs which he now regretted. He expressed sincere remorse. He also admitted he had been selfish and he now realized he put their relationship at risk. In response, Linda expressed her anger, hurt, disappointment and sense of betrayal.

Soon after that, Jim entered into his own individual therapy to understand the underlying reasons for why he cheated, to make changes and to try to save his marriage. 

Subsequently, a paternity test revealed that Jim wasn't the father of the baby. Linda decided to stay in couples therapy with Jim to see if they could repair their relationship and if she could regain trust in him.  She told him that she wasn't promising him anything but, after investing 20 years in their marriage, she wanted to give it a try (see my article: Rebuilding Trust After an Affair).

Conclusion

Secrets and shame are connected in an ongoing destructive cycle.

Keeping secrets is different from maintaining privacy for the reasons mentioned above.

Getting Help in Therapy

If you have been struggling with secrets, you could benefit from seeking help from a licensed mental health professional.

Getting Help in Therapy

Being able to talk about a long-held secret can provide you with a sense of relief. 

Although a psychotherapist can't tell you what to do, she can help you to sort out how the secret has been affecting you and your loved ones so that you can make decisions about what to do and how to change.

About Me

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

I work with 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:

How to Stop Cheating and Repair Your Relationship

Toxic Family Secrets  

Breaking the Code of Silence in a Dysfunctional Family

The Psychological Stages of Forgiveness 

Being in the Role of the Affair Partner

What Are the Telltale Signs of a Serial Cheater 

When Trust Breaks Down in a Relationship: Lies of Omission

Why Do People in Relationships Keep Secrets From Each Other?

In a prior article, I discussed the difference between privacy and secrecy in a relationship (see my article: Privacy vs Secrecy in a Relationship).

What's the Difference Between Healthy and Unhealthy Secrets in a Relationship?

Aside from maintaining your own privacy in a healthy way, there can be other healthy reasons for maintaining certain secrets.

Discovering Secrets in a Relationship

Healthy Secrets

An example of a healthy secret would be a surprise. For instance, if one of the partners is planning to propose, they would probably want to surprise and delight their partner by taking them to their favorite restaurant and proposing with an engagement ring.

Similarly, one of the partners might want to surprise the other with a gift, a birthday party or a much desired vacation.

In both cases, these secrets were temporary and would add to the partner's pleasure.

Unhealthy Secrets

Unhealthy secrets include but are not limited to:

• Hiding Deceitful Behavior: Using a secret to hide deceit; manipulation; betrayal, lying, including lies of omission, often leads to mistrust and can ruin a relationship.  An example of this would be infidelity, including emotional infidelity.

• Hiding Serious Issues: Hiding serious issues, like serious medical problems; financial issues, including financial infidelity; an addiction, among other issues, can weaken or destroy a relationship. 

Why Do People in Relationships Keep Secrets From Their Partner?

There can be many reasons why people keep secrets from their partner, including:

• Maintaining Power and Control: The partner who is keeping a secret to maintain power and control over their partner is engaging in an unhealthy dynamic. Maintaining this dynamic can lead to a decrease in emotional intimacy, emotional distancing, resentment and the potential demise of the relationship.

• Feeling Shame and Guilt: Someone who feels ashamed or guilty about something they did will often keep it a secret because they fear their partner will reject or leave them.

• Feeling Fear of Criticism and Judgment: Even if a partner doesn't leave, they might be critical or judgmental about what their partner did, so the partner keeps it a secret so they don't have to deal with the criticism or judgment.

Keeping a Secret Due to Fear of Criticism

• Avoidance: Related to the above, someone might want to tell their partner about their secret, but they fear how their partner might react, so they procrastinate. The procrastination might be short term or it can be indefinite.

• Experiencing Lack of Trust in the Partner: When someone doesn't trust their partner, they might not want to be vulnerable by revealing what they did, so they keep it a secret.

• Having Poor Communication Skills: Someone who doesn't have good communication skills might not know how to reveal something negative to their partner, so they keep it a secret.

• Having Poor Interpersonal Skills: Someone who has poor interpersonal skills might not know how to approach their partner about something they did, so they keep it a secret.

• Having Poor Relationship Skills: Similar to poor interpersonal skills, someone who has poor relationship skills might not understand the importance of being open and honest with their partner. In many cases, they grew up in a household where good relationship skills weren't modeled for them, so they never developed these skills. There might also have been toxic family secrets.

• Not Wanting to Be Accountable to a Partner: Similar to poor relationship skills, someone might not want to be held accountable by their partner for their actions.

• Being Selfish/Self Centered: Someone who is self centered and selfish might only think of themself and not how their secret might affect their partner.

• Wanting Revenge Against Their Partner/Payback: If someone is angry about something their partner did, they might intentionally keep a secret as a way of getting back. This often happens with infidelity where one partner finds out the other partner cheated and the first partner cheats too as a form of revenge--even though they keep the infidelity a secret.

• Wanting to Be the Betraying Partner After Having Been the Betrayed Partner in a  Current or Prior Relationship: When someone was betrayed in a prior relationship, they might want to gain power in the next relationship by being the betraying partner.

How Can Secrets Ruin a Relationship?

• Secrets Are Stressful: Keeping a secret often involves a lot mental and emotional energy on the secret keeper's part, which creates stress.  The partner who is keeping the secret might also feel stressed because they fear their partner will find out their secret. If someone is keeping a secret from their partner, they might are not be open and honest about other issues in the relationship.  

Secrets Are Stressful

• Secrets Create Mistrust and Resentment: When someone finds out their partner is keeping a secret, they can feel mistrustful of their partner as well as hurt and resentful. 

• Secrets Hurt Both Partners: Keeping a secret hurts both people. The secret becomes burdensome for the secret keeper. Snt,ecrets also create emotional distance between the two partners, which can result in loneliness for both people (see my article: Are Toxic Secrets Ruining Your Relationship?).

Getting Help in Therapy

Whether you're the secret keeper or you're in a relationship where you have discovered your partner has been keeping a secret, you don't have to struggle alone. You could benefit from working with a licensed mental health professional (see my article: Coping With Secrets and Lies in Your Relationship).

Getting Help in Therapy

If you're the one who is keeping a secret, being able to let go of a burdensome secret can free you from guilt and shame.  You can also work with a skilled therapist to how you want to deal with the issue.

If you're the one who has discovered a secret, you might feel overwhelmed with emotions that a licensed mental health professional can help you to work through.

Couples therapy can help you to work through a betrayal and strengthen your relationship, if you choose to stay together, or end your relationship in an amicable way, if you choose to end the relationship, so you don't bring issues from the current relationship to the next relationship (see my article: What is Emotionally Focused Therapy For Couples?).

About Me

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

I work with individual adults and couples.

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

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

Privacy versus Secrecy in a Relationship

Knowing the difference between privacy and secrecy is essential, especially if you're in a relationship.

Privacy vs Secrecy in a Relationship

Although sharing the vulnerable parts of yourself is important for having a strong emotional connection in your relationship, everyone is entitled to privacy, so knowing the difference between privacy and secrecy is important.

What's the Difference Between Privacy and Secrecy in a Relationship?

Here are brief descriptions of privacy vs secrecy so you can compare the two lists to see the difference:

Privacy

Privacy in a relationship refers to having healthy personal boundaries including (but not limited to):

• Thoughts

• Fantasies, including sexual fantasies

• Dreams

• Opinions

• Having private time alone

• Experiences which are separate from your relationship--as long as it doesn't involve withholding information which would be harmful to your relationship (then, this would be secrecy and not privacy)

Secrecy

Secrecy in a relationship involves something unhealthy that you're intentionally hiding from your partner including (but not limited to):

• Cheating on your partner

• Financial infidelity: Hiding financial information or being dishonest about money that belongs to you and your partner

• Being dishonest or purposely misleading your partner/obfuscating

• Violating your partner's trust

• Other things that would be hurtful to your partner and disruptive to the relationship

Clinical Vignettes

The following vignettes, which are composites with all identifying information removed, illustrate how couples can get in trouble with regard to privacy vs secrecy:

• Julie and Tom - Issue: Privacy: Julie and Tom, who were both in their late 20s, had been in an exclusive relationship for six months. Both of them had only ever been in one prior committed relationship before their relationship together. Julie insisted she wanted to know if Tom had sexual fantasies about other women, but Tom felt Julie was crossing a personal boundary by asking him about his private thoughts. He assured her that he didn't want to be with anyone else and he would never cheat on her, but Julie continued to insist he tell her if he ever had sexual thoughts about other women. After numerous arguments, Tom broke up with Julie because he felt she was being too intrusive and controlling, and she wasn't respecting his personal boundaries.

Privacy vs Secrecy in a Relationship

• Bill and Ellen - Issue: Secrecy: After five years of marriage, Ellen discovered that Bill had withdrawn over $5,000 from their joint bank account without telling her. When Bill was confronted by Ellen, he told her that he used the money to pay off credit card debt on a card that was under his name before they got married. He said he didn't think he needed to tell her because he planned to put the money back in the account when he got paid later that week. But Ellen felt betrayed by Bill's secrecy and she told him she would find it difficult to trust him after this. She insisted they go to couples therapy to work through this betrayal. Although he didn't see what he did as a betrayal nor did he see the necessity of going to couples therapy, he agreed because he didn't want to lose his marriage. While in couples therapy, Bill learned the difference between privacy and secrecy, and Ellen and Bill worked to repair their relationship.

• Maggie and Pete - Issue: Secrecy: When Pete's best friend told him that he had seen Pete's wife, Maggie, holding hands while coming out of a hotel with an unknown man, Pete was crushed. At first, Maggie denied the affair, but after Pete asked to see her phone, she refused to show it to him. But she eventually admitted the next day that she had been having an affair for the last six months. She also admitted to two other sexual affairs starting four months after they got married. She apologized profusely and told Pete she never meant to hurt him, but Pete wasn't ready to accept her apology.  He moved out of their New York City apartment for three weeks to think over what he wanted to do. Although he didn't know if he could ever trust Maggie again, he agreed to attend couples therapy to try to repair their relationship.

Privacy vs Secrecy in a Relationship

• John and Bill - Issue: Privacy: Prior to moving in together, John and Bill had a long talk about their two year relationship. John told Bill that he needed some time to himself each day--even if it was just for an hour. Bill agreed, but after they moved in together, he got annoyed whenever John wanted to meditate in their bedroom for 30 minutes each morning. Even though they spent a lot of time together during the week and on the weekends, Bill felt ignored by John when John wanted this time to himself. When they were unable to work this out on their own, they attended couples therapy to learn to negotiate privacy versus secrecy. Bill discovered that since he was never allowed to have any privacy as a child, he didn't really understand privacy, but he was willing to work this out in therapy with John (see my article: Learning to Compromise About Spending Time Together).

In the next article, I'll discuss how to share a secret with your partner.

Getting Help in Couples Therapy

If you and your partner are having problems concerning issues related to privacy and secrecy, seek help in couples therapy.

Rather than struggling on your own, you can work with an objective couples therapist who can help you to work through these issues.

About Me

I am a licensed New York City psychotherapist, hypnotherapist, EMDR, AEDP, Somatic Experiencing, Emotionally Focused Therapy For Couples (EFT) Therapist and Sex Therapist.

I work with 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.

   

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.