Peeking under the mattress

You've heard the horror stories. Husbands and wives accused of hiding income and assets from each other as lawyers and accountants shepherd them through a nasty divorce. But even among blissfully wedded couples, financial advisors say there is an alarming amount of spousal secrecy going on when it comes to financial affairs.

The secret credit card. According to Stephanie Holmes-Winton, president and CEO of The Money Finder in Halifax, secret credit cards are all-too common. "The Benchleys" came to her for a financial tune-up. She found a monthly budget that just wouldn't balance. The culprit? Turns out Mr. Benchley was holding a credit card he had addressed to a P.O. Box and his secret payments to it were throwing off the household accounts.

Fluffing the office. Investments in artwork, antiques, collectables or even expensive clothing are sometimes kept at the office rather than brought home where they might be questioned. Similarly, how many of us have covertly smuggled a new pair of boots into the closet, only to pass them off later, saying "What? No, I've had these for months!"

Colluding with the boss. Someone who is considering (or fearing) a split might hide income by asking their employer to delay payment of salary, commissions, a bonus, salary increase or stock options. Or if they are business owners themselves, they might effectively manage their T4s in order to obscure the reality of their income from their spouse.

via ca.finance.yahoo.com