When older adults in Maryland get a divorce, they face some financial challenges that are not as acute for younger couples, based mainly around the fact that they may have fewer earning years ahead to offset the financial effects of a divorce. When financial infidelity has occurred, those challenges can be exacerbated for people in what is often called a “gray divorce.”
Divorce and financial issues
Financial infidelity refers to many different behaviors that involve deceiving a spouse about money. It can be the cause of a divorce, or it might be something that is uncovered over the course of the divorce process. Both of these things can be true as well. Financial issues are a common cause of divorce, and underlying deception regarding finances that resulted in those issues may also come to light, sometimes during the discovery phase.
Effects of financial infidelity
Financial infidelity can cause both emotional and material damage. Even though the divorce is already underway, it can be devastating for an individual to learn the extent to which their spouse has been lying to them for years. In addition, they may find their own financial stability threatened as they discover debts that they may both be held responsible for or that they have far fewer assets than they thought.
Hiding assets
Acts of financial infidelity can also become part of the divorce process itself if one spouse attempts to conceal assets in an effort to avoid having to split them with the other spouse. It may be possible to find these assets by getting statements and other copies of financial documents and looking for signs of such deception, such as transferring large sums of money. In some cases, it may be necessary to hire a forensic accountant or a similar type of professional in order to uncover these assets.
Identifying and protecting assets, particularly retirement assets, is critical in a gray divorce. When there has been deception regarding finances, it may be necessary for some individuals to revise their retirement plans in order to secure a more stable financial future.