3 Financial Red Flags for Relationships
What You Need to Know Financial fraud is often perpetrated by someone the victim knows, like a romantic partner. Watch for recurring signs of cash flow problems, like declined credit cards or asking to borrow money. Ecourage clients to use the “ABCD test” to ensure financial compatibility in a long-term relationship. It feels like every day there’s a new documentary or expose about innocent people falling victim to predators that make off with thousands and sometimes millions of dollars. As these stories often highlight, it’s easier than it may seem to become a victim of financial fraud. Many frauds are perpetrated by someone close to the victim, like a romantic partner. Transferring money to someone you trust, blindly signing documents — these are all ways that average people end up in extraordinary situations and are probably things that everyone has done. Talking about money makes many people uncomfortable, but turning a blind eye to financial discussions can have significant consequences that range from overspending and not saving enough money to more sinister situations with legal involvement. As a financial advisor, I’ve witnessed this behavior on several occasions, and it never gets easier. Fortunately, though, there are patterns to look for. A...
