The United States divorce rate has hovered around fifty percent for dozens of years. While the reasons vary, of course, a common thread for the vast majority of divorces includes financial problems. In fact, some research suggests that money problems in a marriage are the number one cause of divorce. The financial and emotional toll of a divorce can debilitate individuals and devastate families. If we could simply solve our most serious family money issues, we could remove perhaps the single biggest hurdle to a successful marriage. Top Divorce attorneys in Scottsdale recommend paying attention to the following list of four of the most common money problems in a marriage along with some solutions that can help get you back on the right track.
Couples who fail to discuss their finances are almost bound to run into trouble sooner rather than later. The ones we’ve seen that work out reasonably well are where there is a high level of trust between partners and one spouse happily relinquishes most of the financial decisions to the other. The only time when this generally causes an issue is when the primary money manager passes away before the other spouse.
The best solution for all couples is to put into place periodic open communications about the family’s finances. Ultimately, communication is key to a successful marriage. Shared access to financial accounts, passwords and records is also key to building mutual trust.
Surprisingly, over fifty percent of American families have less than $1,000 in savings. With virtually no savings, you are guaranteeing that there will be financial stress in your marriage. No savings can often feel like no security.
You simply have to build reserves for unanticipated expenses. The best way to do this is to have your bank or employer automatically transfer a given amount into a segregated reserve account from each paycheck.
It happens far too often when one partner “hides” money from the other. Finding out about a secret stash of money is guaranteed to breed mistrust. Once that happens, of course, you can bet that the mistrust will bleed over into other facets of the marriage.
There should be absolutely no secrets between spouses. Being able to be honest and vulnerable with your spouse will enrich your relationship. Transparency builds trust, fosters love and increases your ability to connect.
Different Money Values
Generally speaking, about 80% of individuals in marriages fall into one of two categories: spenders or savers. The spender sees money as a tool for enjoyment with little concern for the future. The saver will tend to stress over all the future money needs and is obsessive about saving.
This can actually be a healthy relationship if they can come to an agreement on auto-saving for a few agreed-upon goals such as home down payment, retirement saving, and/or saving for a child’s college expenses while agreeing to spend the rest. Every couple is different, and only you and your partner can generate the best win-win solution.