Financial Infidelity: Grounds for Divorce in Arkansas

Financial infidelity—concealment or deceit about finances within a marriage—can play a significant role in divorce proceedings in Arkansas. Though it is not explicitly listed as a ground for divorce, it can still have serious consequences, particularly when it affects the division of assets, debts, and alimony decisions. This article delves into how Arkansas law views financial dishonesty within marriage and its impact on divorce outcomes.

A 2021 Harris poll revealed that 85% of people believed financial dishonesty harmed their relationship, and 52% considered it worse than adultery. These statistics highlight the deep damage financial betrayal can cause, and Arkansas courts take such issues into account when ruling on financial settlements in divorce cases.

Consider this story: Elise and Duncan had been married for eight years when Elise discovered Duncan’s hidden credit card statements and secret investment accounts. For years, Duncan had been diverting income into private accounts and amassing debt on credit cards that Elise was unaware of. The financial infidelity shattered their marriage, leading Elise to file for divorce. Arkansas law allowed her to address the financial betrayal and seek a fair division of assets, including those Duncan had hidden.

What is Financial Infidelity, and Is It a Ground for Divorce in Arkansas?

While Arkansas allows for no-fault divorce under the grounds of "irretrievable breakdown of the marriage," financial infidelity can bolster claims of fault-based divorce, such as "habitual cruel and barbarous treatment" or "indignities." These grounds require evidence of mistreatment, which may include financial deception.

Common examples of financial infidelity include:

• Concealing debt
• Secretly making large purchases or investments
• Hiding assets or savings
• Lying about income, earnings, or financial losses
• Opening secret accounts
• Engaging in hidden gambling or speculative investments

Signs of Financial Infidelity in Arkansas Divorces

If you suspect financial infidelity in your marriage, watch for signs such as:

• Hidden accounts or unexplained withdrawals
• Missing financial statements
• Unexplained changes in spending habits
• Protectiveness over financial records or devices
• Sudden changes in credit scores or cash flow issues

Addressing these issues early with the help of a financial advisor or attorney can prevent further harm, especially as Arkansas follows the principle of equitable distribution in dividing marital assets.

Is Financial Infidelity Illegal in Arkansas?

Though not illegal in the criminal sense, financial infidelity can have significant legal consequences during divorce. Arkansas courts require full financial disclosure. If one spouse hides assets or engages in deceptive practices, the court may penalize them by awarding a larger portion of marital assets to the innocent spouse or adjusting alimony and support orders.

Can You Sue Your Spouse for Financial Infidelity in Arkansas?

While you cannot sue your spouse directly for financial infidelity, Arkansas law provides avenues to address the financial harm caused during a divorce. The courts may consider financial misconduct when dividing marital assets, and if one spouse can prove that the other wasted or hid assets, they may be awarded a larger share of the property.

How Does Financial Infidelity Impact Arkansas Divorce Proceedings?

Financial infidelity can have a profound impact on the division of marital property, alimony, and child support in Arkansas. The state follows an equitable distribution model, meaning the division of assets is based on fairness, not an equal split. If financial dishonesty is uncovered, courts may adjust the division of assets to compensate the wronged spouse.

Impact on Marital Property

Arkansas courts may award a larger portion of the remaining assets to the wronged spouse if financial infidelity has depleted the marital estate. Forensic accounting may be necessary to uncover hidden assets, increasing the complexity and cost of the divorce.

Impact on Alimony

Financial infidelity can affect alimony decisions in Arkansas, particularly if the misconduct significantly impacted the marital finances. Courts may award more substantial alimony to the wronged spouse to compensate for financial damage or to maintain the marital standard of living.

Impact on Child Support

If financial infidelity reveals hidden income or assets, child support payments may be adjusted to reflect the parent’s true financial situation. Arkansas courts prioritize the child’s best interests and will adjust support accordingly.

Impact on Child Custody

While financial infidelity may not directly impact child custody decisions, it could indirectly influence a court’s evaluation of parental responsibility and character, particularly if the deceit affects the child’s financial stability.

What if You Were Financially Deceptive During the Marriage?

If you were financially deceptive during your marriage, transparency is crucial when facing divorce in Arkansas. Coming clean about your actions early in the process can sometimes be viewed favorably by the court. Hiring an experienced divorce attorney is essential to navigate these complexities and possibly argue that your actions did not significantly harm the marital estate.

Can Retroactive Adjustments Be Made?

If one spouse concealed finances during a divorce in Arkansas, the courts can make retroactive adjustments. This means that hidden assets may be added back into the marital estate, and the division of property may be recalculated to reflect the true financial picture. Courts may also impose penalties on the deceitful spouse.

Financial Infidelity in Other States vs. Arkansas

In community property states like California or Texas, marital assets are typically divided 50/50, limiting the court's discretion to adjust for financial misconduct. However, in equitable distribution states like Arkansas, courts have more flexibility to account for financial infidelity in their decisions.

Do You Need a Divorce Lawyer? What Are Your Options in Arkansas?

Navigating divorce—especially when financial infidelity is involved—can be complex. Hiring a lawyer can help you understand your rights and protect your interests. However, other resources are available, such as:

• Legal Aid of Arkansas for individuals with limited financial resources
• Online legal services and document preparation services like Your Law Coach for those seeking more affordable options

Considering your financial situation and the complexity of your case will help determine whether professional representation is necessary or if alternative solutions will suffice.

References

Arkansas Code Annotated, Title 9, Chapter 12 (2024). Retrieved from Arkansas Legislature Website.

Harris Poll. (2021). "Financial Infidelity in Relationships." Retrieved from Harris Poll Website.

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