By Wall Street Journal
This week, we’re bringing you stories about the financial impact of divorce.
Marriages fall apart for any number of reasons. For Jessica Simon, the first signs that hers was in trouble showed up in the checking account she shared with her husband.
At times, it would be a stray DraftKings charge. On other days, there would be more. Roughly nine years into their marriage, her frustrations with the sports bets reached a tipping point.
The rift over money made clear how much they had both changed since they first started dating and had kids.
“We’re not the same people we were,” said Simon, 41, who lives in Philadelphia and works for a clinical research company.
Money, that eternal source of marital friction, offers a paper trail for the unraveling of countless marriages.
Roughly a third of Americans who have tied the knot said their first marriage ended in divorce, according to a Pew Research Center report that uses 2023 data. Divorce lawyers say that what’s known as financial secrecy or infidelity is at the center of many splits. That can mean hiding when an income source dries up, keeping a secret bank account or giving in to any of the financial temptations that have proliferated in recent years, whether it’s sports betting, shopping apps or risky trades.
“This article highlights how modern financial tools have amplified both independence and risk. Separate accounts, digital payment platforms, and instant-access betting or trading apps make it easier than ever to operate in silos. While there is nothing inherently wrong with maintaining some financial independence, the absence of agreed-upon boundaries and visibility can create a false sense of security for one spouse and significant exposure for the other.
Arizona is a community property state, which means that in most cases, income earned and debts incurred during the marriage belong to both spouses. What many people do not realize is that financial secrecy does not just damage a relationship emotionally; it can have tangible legal consequences. When one spouse diverts or conceals community funds whether that be through gambling, undisclosed accounts, or supporting a separate life, it may constitute “waste” or dissipation of marital assets. Courts can and do account for that when dividing property, often reallocating funds to compensate the other spouse.”
-Kelsey Fischer, Rose Law Group Family Law Attorney
