Till debt do us part?
The traditional "richer or poorer" phrase in wedding vows is a hard one to keep, considering one in five people in a relationship say their partner is financially irresponsible, and that they’re 10 times more likely to break up for financial reasons, according to a new survey released Monday from insurance comparison website Policygenius.
The survey polled 2,005 adults in relationships and asked them questions like "What financial information do you and your partner know about each other?" and how they deal with money as a couple. The findings revealed that only 50% of people know their partner’s credit score, and yet 78% of those surveyed manage joint finances.
“If you’re at all doubtful about transparency, get a credit check. If they don’t give you permission to get a credit check, you’re in trouble,” Peter Walzer, a divorce lawyer based in Los Angeles, told FOX Business. “Know everything about your own finances, your mate’s finances and have a plan for how you’re going to work together to budget effectively and save for the future.”
The reality is that most couples openly commit financial infidelity: 12% of people in a relationship have hidden a purchase from their partner; another 20% say they’d spend $500 without telling their significant other and what’s worse, 16% said they don’t know anything about their partner’s money situation, according to the survey.
Financial feuds are increasingly a pain point in relationships, particularly when one person is tight with money and the other spends more liberally. People are twice as likely to describe themselves as savers and their partners as spenders, according to separate data from SunTrust Bank.
Because of these woes, some couples are enrolling in financial therapy to get on the same page about finances. Money summits have sprouted up around the country to help couples talk about daily budgets, divvying up financial responsibilities, debt and financial goals, like saving up for a baby, a new home, retirement or for vacation.
But there are little things couples can do every day to maintain a financially healthy relationship, whether it's carving out hour-long money dates to talk openly about what you've spent that week and why, or to plan ahead for future expenses.
"Decide in advance how you will handle major purchase decisions together," said Brittney Castro, a certified financial planner. "For example, some couples agree to discuss every purchase over a certain amount of money. Hurt feelings may arise from the surprise of an expenditure, rather than simply that the money was spent,"