On my firm’s blog, I have been very open about sharing personal financial successes and missteps. Marriage is one of my successes. My husband, Bryan, and I:
- Have profound respect for each other.
- Have been married for 10 years and merged our money from day one in our partnership as husband and wife.
- Took the Building Wealth assessment, administered by DataPoints, and scored similarly in several categories.
- Are not financially supporting any extended family or friends.
- Rarely disagree over finances and keep the lines of communication open when researching a large purchase (i.e., home remodel, car, etc.).
We recognize that not everyone is so fortunate. Money conflict is the No. 2 reason for divorce nationally, behind infidelity. No one benefits when you hide debt from your spouse.
One of my friends was married to a guy earning a six-figure salary. Unbeknownst to her, he racked up over $40,000 in credit card debt. They are now divorced, and she knows his debt is well over $100,000. Regardless of how much money you or your spouse earns, you should not be oblivious to his or her spending patterns.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The Importance of Communication
I am not a therapist, but I argue that communication (or lack thereof) is the source of most marital conflicts. When you disagree with how your spouse is parenting, it is better to speak up in a calm, non-threatening way than it is to let it fester and unleash a beast.
When you are frustrated by your spouse’s recent purchasing decision, gently open a conversation to better understand his or her point of view. The time and energy it takes to resolve a small conflict is minuscule in comparison to the lengthy and costly divorce process. Additionally, the emotional toll on the family is greater than any financial implication of divorce.
Breadwinning Women
What happens if you are a breadwinning woman who earns more than her husband? Farnoosh Torabi discusses this subject in her last book, When She Makes More. Torabi’s research indicates that the risk for divorce is even higher in this situation, particularly if you and your husband’s earnings were similar at the beginning of marriage but that trend reversed during the marriage. The reason for this difficulty relates to traditional gender stereotypes.
In prehistoric ages, men were the hunter-gatherers who brought home food to their families and kept them safe; women were responsible for the upkeep of the home and children’s care. Although we have made societal strides in feminism and equal opportunities in the workplace, the gender pay gap still exists, and we subconsciously fall into stereotypical roles. Even married, breadwinning women continue to take on the lion’s share of household responsibilities. And that can cause a lot of stress in a relationship.
Separate Accounts
Torabi recommends several strategies to reverse these stereotypes. One possible financial solution: Have an account for joint expenses like rent or mortgage AND separate, individual accounts.
I challenged Farnoosh on this recommendation when she spoke at the XY Planning Network Conference this summer, citing my marriage as an example. Bryan and I never had separate accounts as a married couple and do not plan on having them. We were married in our mid-20s, and neither of us brought any substantial assets into the marriage. Farnoosh clarified her original message: Do what works for the couple. Communication is key.
The danger I see with separate accounts is that they could shut the door to constructive dialogue. If you and your spouse have separate accounts, it’s critical to come to a consensus on joint expenses and savings goals. Perhaps he can contribute to kids’ college savings accounts while you focus on building an emergency fund.
Reflection
Hopefully, this article left you inspired. What is one thing you can do today to strengthen your marriage and better communicate with your spouse?
-
Should You Buy a Second Home When You Retire?Buying a second home in retirement, especially with sufficient savings, can enhance your lifestyle or serve as a smart investment. But it requires careful planning.
-
What the OBBB Means for Social Security Taxes and Your Retirement: A Wealth Adviser's GuideFor Americans in lower- and middle-income tax brackets, the enhanced deduction for older people reduces taxable income, shielding most of their Social Security benefits from being taxed.
-
What the OBBB Means for Social Security Taxes and Your Retirement: A Wealth Adviser's Guide
For Americans in lower- and middle-income tax brackets, the enhanced deduction for older people reduces taxable income, shielding most of their Social Security benefits from being taxed.
-
Financial Planner vs Investment Manager: Who's the Better Value for You?When markets are shaky, who do you trust with your money? A recent study provides useful insights into the value that different financial professionals offer.
-
I'm a Financial Adviser: This Is How You Could Be Leaving Six Figures in Social Security on the TableClaiming Social Security is about more than filing paperwork and expecting a check. When you do it and how you do it have huge financial implications that last the rest of your life.
-
The Big Pause: Why Are So Many Americans Afraid to Retire?While new research sheds light on Americans' growing reluctance to quit work in later life, can anything be done to help those with the retirement jitters?
-
Five Under-the-Radar Shifts Investors and Job Seekers Can't Afford to Ignore Under the OBBBBeyond the headlines: The new tax law's true impact for job seekers and investors lies in how it will transform industries and create opportunities in areas such as regional accounting, AI and outsourced business services.
-
I'm a Financial Professional: It's Time to Stop Planning Your Retirement Like It's 1995Today's retirement isn't the same as in your parents' day. You need to be prepared for a much longer time frame and make a plan with purpose in mind.
-
An Attorney's Guide to Your Evolving Estate Plan: Set-It-and-Forget-It Won't WorkWhen did you last review your will? Before kids? Before a big move? An update is essential, but regular reviews are even better. Here's why.
-
For a Richer Retirement, Follow These Five Golden RulesThese Golden Rules of Retirement Planning, developed by a financial pro with many years of experience, can help you build a plan that delivers increased income and liquid savings while also reducing risk.
