When getting married, young people plan for their future gain, while middle-aged and older couples are more focused on preserving and growing their accumulated wealth. Money is an important part of a marriage. While it is not the sole reason for divorce, financial security is essential, and mismanagement of it can cause divorce. A divorce attorney outlines various financial challenges whose eventuality is divorce.
Household Debt Being More than Disposable Income
Unfortunately, while people know that they should always live within their means, some people always find a way to establish credit and fund a lifestyle. They use up all their credit lines and revolve around their credit accounts until they are maxed out. Making the minimum payment is dangerous as the debts continue to pile up and grow. This puts a strain on your life and might lead to constant arguments and bitterness.
Amateur and Failing Investments
Putting your disposable income in bonds, stocks, and funds is a good idea for long-term financial security. Hiring a professional to manage your family investments is a sure way of cushioning yourself against major market fluctuations. A good investment strategy should have a manageable gain vs. loss balance. The unfortunate incident comes when a couple or one partner loses a huge wealth in money markets. Unfortunately, some couples are not strong or mature enough to withstand and overcome the problem together.
Mismatched Financial Priorities
It is essential to identify goals and financial priorities before you get married, as this is a major bone of contention when both partners want different things at the same time. You need to identify major goals such as owning a home, saving for a vacation, or going to exotic places every few years. This ensures that you work and save up for the same reason. Besides saving money, it ensures you stay in love.
Financial Infidelity
Like sexual infidelity, financial lies have devastating effects in a marriage as they break honesty and trust, which is the cornerstone of any marriage. It mostly occurs due to the build-up of financial tension, having different goals, and poor communication. In some people, it occurs due to emotional and psychological issues from the past that need unpacking. Financial infidelity occurs in the form of gambling addictions, undisclosed debts, hidden purchases, and secret bank accounts. Financial infidelity can be solved through a marriage counselor if both partners are willing to work on it.
Over-extended Budgets
When people get married and combine their income, they feel financially powerful, which leads most people to poor spending decisions, ending up in dept regardless of the huge income. This puts a huge strain on a relationship. For instance, committing a huge chunk of your income to your dream home means you have enough left to live a basic life with minimal or no luxuries. Financial experts advise that a couple never commit more than 25% of their combined income to a long-term investment. This allows for a flexible lifestyle, thus alleviating financial tension that might lead to divorce.
Compromising on Expenditure
It is impossible to always be on the same page about all financial matters in a relationship. Learning how to compromise is essential for a healthy, happy marriage. For instance, your partner might love takeouts and eating out more times in a week than you cook in. Instead of fighting their wish, provide a budget where you can go out on a date night or order in. This will make both of you happy as you will have met halfway.
Impulse Buying on Major Items
Regardless of how dire or comfortable your financial situation is, most couples agree that major purchases should be agreed upon and made by the couple. It is one thing when your partner comes home with extra donuts, shoes, or clothes, but it is another when they pull up on the driveway with a car that you did not hear about, need, or want. Leaving your spouse out of a major decision is a quick recipe for the death of a marriage.
In the same way, couples seek pre-marital counseling from a religious leader; they should ensure to speak to a financial expert for pre-marital financial counseling. This will open up minds and have people understand what they want and how they want it. It prepares you for a successful marriage, no matter the financial hurdles.
