What is Financial Infidelity and How to Avoid It

What is required to make a romantic relationship work? I think most of us would agree love, commitment, and trust are three key ingredients.

If your partner cheats on you with another person, it can be difficult or even impossible to overcome. Once trust is broken in a relationship, it’s hard to recover.

The same is true when it comes to money. If your partner commits financial infidelity and lies about where they’re spending money, the amount of credit card debt they’ve racked up, or gambles your life savings day trading in the stock market, it can be difficult to forgive and forget.

What is financial infidelity?

Financial infidelity is when one partner keeps a secret or tells lies that affect the family’s shared finances. If your partner is hiding a secret credit card and racking up debt, have a compulsive online shopping habit they haven’t told you about, or stopped investing in their company retirement plan in defiance of your stated plans – you’ve been a victim of financial infidelity.

These are just a few of the many examples of financial infidelity.

And just as there are different levels of physical cheating, there are different levels of financial infidelity each with its own intensity. Racking up tens of thousands of dollars in credit card debt is different than “temporarily” stopping your retirement plan contributions. However, they all possess the same characteristics: an improper use of money without you knowing about it.

Financial infidelity can be just as devastating to a relationship as when someone physically cheats as both are rooted in the same issue: a significant breach of trust.

The partner who’s been financially cheated on starts to think, “If he’s lied to me about this, what else is he hiding?”

“How long has this been going on?”

“Is this the first time he’s strayed or does this happen often?”

In addition to creating trust issues, it creates emotional issues. Squander enough money and you’ll squander your life goals, dreams, and ambitions right along with it.

Why do people commit financial infidelity?

Financial infidelity is a common problem in the U.S. A 2018 survey conducted by Harris Poll found over 40% of Americans who had combined their finances admitted to financial infidelity. And it’s a growing problem.

In 2016, the number of adults who committed financial infidelity was 33%. By 2018, it jumped to 40%. That’s a 21% increase in just 2 short years. This begs the question … why?

We know money is an emotional topic. People come into relationships with all sorts of financial baggage. This makes it difficult for partners to communicate about money or get on the same financial page. Here are some of the most common reasons people commit financial infidelity.

Traditional beliefs

Some people grow up thinking money is taboo and should not be discussed. Talking about money is considered classless and rude. Such beliefs make it difficult for partners to open up and have honest conversations about money. It also leads to the “I didn’t know” argument.

You know, the one where he says, “I had no idea you felt this way. I wouldn’t have done it had I known.”

But, if you’ve never had the conversation, it lets him off the hook. Worse still, it places blame on you for “not speaking up sooner.”

Gender roles

Others grow up believing in traditional gender roles. It’s not uncommon for men to believe they should be the primary breadwinner. If they can’t (or don’t) live up to this expectation, they feel they’ve failed as a man. This can lead to feelings of embarrassment and shame and an unwillingness to share with their partner.

In a similar vein, many women believe finances are the man’s job and they should be in charge of it. This lack of engagement is fertile ground for bad financial behavior. Often, by the time she figures out what’s going on, real damage, sometimes irreparable damage, has been done.


If someone is in an abusive or controlling relationship, they may find it necessary to sneak money and put it into a secret account to fund their escape or prepare for separation. Additionally, an abused partner might feel like she needs to hide her purchases from a controlling spouse if she fears there will be negative consequences for her spending.


Some partners might feel they are entitled to a secret credit card or bank account because they make significantly more money than their partner. They believe because they earn the majority of the money, they deserve to treat themselves with “no questions asked.“


Any kind of addiction, whether it’s alcohol, drugs, shopping, sex, or gambling can lead to financial infidelity. Usually, the person battling the addiction is trying to cover up their bad habits and the financial damage that come with it. They hide evidence of their compulsive shopping trips or fail to admit they’ve blown through their retirement savings to fund their addiction.

On the other side, partners of addicts may begin to hide money in an effort to keep it safe. They might open secret bank accounts so their partner can’t use the money to fund their addiction.


This is the double whammy of infidelity. One partner is having a physical affair while also committing financial infidelity. The cheating partner is buying gifts and paying for romantic dinners all behind their spouse’s back.

How to overcome financial infidelity

It’s easy to comprehend how financial infidelity happens. That doesn’t make it any easier for the person who’s been duped. In an effort to avoid financial infidelity, or overcome it if it’s already occurred, here are some strategies you can try with your partner.


Couples should have open conversations about money as soon as their relationship gets serious. And they’re an absolute must before any shared long-term financial commitments are made like buying a house, getting married, or even adopting a puppy.

Take responsibility

Get your heads out of the sand. Both partners should be aware of their combined financial situation. If one person is more financially savvy and enjoys taking care of the finances, that’s fine. But, both need to be aware of what’s going on and how to access account information so no one is surprised.

Come up with a plan

There’s no such thing as “one size fits all” when building a financial plan. It is up to you and your partner to discuss and decide what works best. The important part is to make sure you have a shared plan that outlines how your finances will be managed. This includes things like how you will split expenses, who will be responsible for ensuring the bills are paid, what are your debt and investing philosophies, and whether or not you will consult each other before making a (large) purchase.

(See Guiding Principles for a unique way to get on the same page with your partner.)

Are you ready to start talking?

Money is the number one thing couples fight about and one of the leading causes of divorce. It’s no surprise financial infidelity is so prevalent among American adults.

Partners come together as two separate people with separate beliefs, values, and opinions about money. This makes it difficult to find common ground when it comes to how to manage your money.

If you’re to avoid or overcome financial infidelity, it’s imperative you talk early and often. If you are still struggling, consider reaching out to a therapist or financial coach to help you get on the same page. Given what’s at stake, isn’t it worth the effort?