One Partner Is Secretive About How They Made an Expensive Purchase
You should be seriously concerned if your spouse becomes evasive about how they funded a big expense.
“It is not uncommon that one spouse is less involved in the family’s finances than the other,” said Rachel Needham Gillilan, CPA, manager of fraud and forensic services at Red Bike Advisors. “However, if your spouse has suddenly traded the family mini-van in for a paid-in-full Ferrari, without an explanation on where the money came from to buy this car, this could be a red flag (for many reasons).”
One Partner Uses Mainly Cash for Purchases
“Many people think cash is untraceable (spoiler — it’s not totally) and use cash often if they are either trying to conceal how the cash was earned or conceal certain purchases using cash,” Gillilan said. “Some individuals prefer to earn income in cash and deliberately choose not to report this cash to the Internal Revenue Service on their annual tax return. This could be considered tax evasion and can carry hefty fines and/or jail time. In some circumstances, both spouses may be liable for these actions even if the other spouse was unaware. Consult a forensic accountant if you’re unsure.”
