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Do Financial Challenges Cause Divorce?

Do Financial Challenges Cause Divorce? Financial challenges and arguments are one of the biggest contributors to divorce. No surprise there. But is there a happy medium for marital finances? YES & NO, say financial and relationship experts. What Are Your Options? Don't Talk About It. We can't find a single financial or relationship expert who says this is a good idea. Carl Richards, certified financial planner and author, suggests that the more couples know about their finances and goals, the happier the couple will be. Bad things could happen: ') BILL DEBT Miss a bill, car, credit, Unexpected, unneeded expenses. Mismanagement of funds by one or both parties. or house payment. A spouse may not have a squeaky clean financial past and can slip into some bad habits. Sometimes, they bring their significant others down with them. In a survey. 31% of responders reported lying about their finances to their spouse. Of those: 121 58% 54% 30% hid cash. hid a minor hid a bill. purchase. 16% 15% 11% 11 % hid a major purchase. hid a bank lied about lied about account. debt. earnings. The Joint Account There is something inherently trusting in tying your financial well-being together. It's more than vowing to love and to hold, it's being together for richer or poorer. Sarah Pennells, a finance journalist and broadcaster, has discussed the pros and cons of joint accounts: 31 PROS CONS Both partners know exactly what's going on. Both spouses are responsible for debts. BILL Easier to pay bills. One partner may expect justifications for expenditures. Easier to share financial responsibility. Some couples delegate one person as the spender, to keep purchases from rocketing out of control and reduce the confusion. Separate Accounts O In a recent American Express survey. 14 had their own savings. of married or long-term partners had separate checking accounts. Some say that separate accounts undermine a marriage. Dr. Phil suggested separate accounts over joint W accounts: "It's important to have independence and your own discretionary money." But he advises keeping the other spouse informed of expenditures and living within a mutually-agreed-upon budget. BILL [S] "Yours, Mine, and Ours" Accounts An alternative solution to the separate account, and a favorite of Jean Chatzky, a financial journalist, author, and speaker. 16) It can get messy, especially in a dual-income household. If a couple makes (roughly) the same amount of money, they may be content to call it even and deposit the same amount into the joint account. More likely, couples will have vastly different incomes, and a set amount might seem unfair. O That can be easily fixed by setting a percentage. One brings in $60,000 while the other makes $30,000. Say a couple jointly The higher income individual would be responsible for two thirds of the contribution to makes $90,000 a year. the joint account. A way around that math: Have both paychecks go into the joint account and give each separate account holder a stipend. Paycheck So What's the Secret to Success? It all comes down to communication. Scott and Bethany Palmer, authors of Cents and Sensibility: How Couples Can Agree About Money, emphasize that partners need a full disclosure discussion on finances before combining assets. 7 The National CPA Financial Literacy Commission suggests.. Having an undistracted weekly or monthly "finance night" to: 191 Talk upcoming expenses. Review Budget. statements O Split the duties, but keep the lines of communication open. However you choose to handle your finances as a married couple, it is vital to discuss, discuss, discuss. If you can't discuss these matters in a civil way, you might want to talk to a financial or marriage counselor (or a lawyer). Sources [1] http://bucks.blogs.nytimes.com/2012/05/14/how-to-talk-about-money-with-your-spouse/ [2] http://articles.chicagotri- bune.com/2011-02-11/news/sc-cons-0210-save-financial-infidelit20110211_1_financial-infidelity- bonnie-eaker-weil-relationship-wrecker [3] http://www.savvywoman.co.uk/c4-pages/c4s6.php?art_id=133 [4] http://online.wsj.com/article/SB10001424052702303754904577530710194368918.html [5] http://www.drphil.com/articles/article/32 [6] http://www.oprah.com/money/Marriage-and-Money-Separate-and-Joint-Bank-Accounts [7] http://www.yourtango.com/experts/scott-and-bethany-palm- er-the-money-couple/should-we-marry-our-money-we-say-i-do [8] http://www.aicpa.org/Press/PressReleases/2012/Pages/Financ- Itotal divorce" es-Causing-Rifts-for-American-Couples.aspx

Do Financial Challenges Cause Divorce?

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Financial challenges and arguments are one of the biggest contributors to divorce. No surprise there. But is there a happy medium for marital finances? Yes and no, financial and relationship experts say.

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Total Divorce

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Love and Sex
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