While deferring financial dealings to one spouse or the other may not seem like a problem to either party at the time, there can be consequences. This lack of interest often results in ignorance about shared property and/or debt. Since the fiduciary obligations that arise out of marriage are both rights and duties, each partner should assert his/her own rights to complete understanding of the couple’s finances ” sooner rather than later.Īll too often, one partner handles the finances, while the other partner abdicates his or her obligation to share in that responsibility.
YNAB BUDGETING ROLES IN MARRIAGE FULL
Whether candid discussions of finances are uncomfortable now or hashed out with attorneys during a divorce, full disclosure must be made at some point. Conflicts over money hold firm at the top of the list of issues contributing to divorce. In essence, California law mandates frank communication about finances.Ĭouples can no longer afford to avoid difficult conversations about money. One partner does not have a greater right to these records than the other.
These include the right to have access, and the duty to make available books concerning a financial transaction, and when asked to make available true information concerning the parties’ marital assets and debts and all transactions which could affect it. In fact, the duty to fully disclose financial transactions includes both, marital and separate property income, expenses, assets, liabilities and investment opportunities.Ĭalifornia’s community property laws view marriage as a partnership and just as partners in a business have rights and duties to one another, so do those in marital ones. It also requires spouses to act in the best interest of the couple as a whole, and not merely for self.įor example, if a spouse makes an investment using separate property rather than marital property, especially a winning investment, questions may arise concerning the choice not to invest joint funds. Saying “I do” creates a legal relationship between married couples, which includes the right and duty to be forthright and honest with each other in all financial dealings affecting either spouse. The reality is that disclosure begets trust, nondisclosure leads to mistrust, and often results in divorce.įiduciary duties arise out of the very act of getting married. Yet, no matter how one rationalizes their conduct, spouses and domestic partners may find themselves in the midst of legal problems even if they are not getting a divorce. Spouses keep these financial secrets from one another for a variety of reasons, including control, insecurity, and punishment, to mention a few. Many spouses may be startled to know that they could be saddled with their spouse’s hidden credit card debt or lose their secret savings account if not disclosed to the other.
Specifically, open, honest communication is an absolute must. Today, marriage is as much a business contract as it is a love relationship, and in the case of fiduciary duties, what couples do and don’t do matters. Financial Infidelity: Love, Honor and Disclose: Tips to Run Marriage like a Company
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