It is no secret that a divorce can reveal considerable financial information about a spouse. Due to the property division process, a litigated divorce essentially forces spouses to reveal virtually every little detail about their wealth. This includes their income, their tax information, their assets, their inheritance, and their debts. In most cases, these details only ever make headlines when the spouses are famous. Celebrity divorces are obviously major talking points in articles, especially when financial details like child support and net worth are made public.
But how can these details harm average spouses? Is it true that only celebrities can be harmed by this information coming out? Why might it be a good idea to keep your net worth confidential as you go through a divorce, and how might spouses go about ensuring this information stays private?
One of the best ways to keep these details private is to pursue a mediated divorce or a collaborative divorce. This means that negotiations over property division occur behind closed doors, and the public never actually learns how much either spouse is worth. But why exactly is confidentiality so important?
A Revealed Net Worth Can be Embarrassing
Having your net worth revealed can be slightly embarrassing. This is especially true if spouses have considerable debt, and they have been cultivating an image of wealth and success while secretly struggling immensely with financial matters. This may be even more concerning if spouses are leaders in the community, business owners, or even local politicians. Their net worth could ruin their reputation and lead to problems with their careers if revealed during a divorce.
But even if a spouse’s net worth is actually quite impressive, it could still be embarrassing if revealed. Most people do not want to be treated any differently because of their wealth, and when other people suddenly find out that they are worth millions, it can lead to anxiety and self-consciousness on the part of the spouse.
A Revealed Net Worth Can Make You a Target
When a spouse’s net worth is revealed, it can also make them a target. When criminals discover that someone in their community has millions of dollars, they might attempt to steal from them. This might occur in a number of ways. Firstly, they could break into their homes and attempt to steal high-value items. They may also attempt to subject them to a scam or even an online “hack.” Finally, criminals may even kidnap members of the spouse’s family and attempt to hold them for ransom.
A Revealed Net Worth Can Affect Your Social Life
It is also worth mentioning that when your net worth is revealed, your social life may suffer. Close friends may start asking you for money, putting you in a very awkward situation. You may start to wonder whether people are treating you nicely because of your personality, or whether they just like you because of your money. Even your love life can suffer because of this, as you might worry that romantic partners are only interested in you because of your wealth.