Marriage & Financial Problems
According to ABC News, regardless of income, many couples still fight about money. This is because each spouse often views his or her own financial world differently. Financial problems have destroyed many marriages.
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Merging Funds
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According to Smart Money, most couples put all their funds into a joint account. Still, 14 percent keep all their money in separate accounts, and 18 percent have both joint and separate accounts. Some couples struggle with the idea of having a joint account. They believe that banking individually helps them to maintain their financial independence. But in cases such as when children and a mortgage enter the relationship, merging all the finances is simpler and deepens the couple's unity.
Debt Handling
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According to "Smart Money" personal finance journalist Aleksandra Todorova, debt is the number-one reason why couples fight. When you view your spouse's debts as his responsibility, it creates distance in the marriage. Notably, once you get married, you might take on your spouse's debts. But as long as finances are separately maintained, you are not responsible for debts incurred before the marriage or for loans bearing only your spouse's name. If separate finances are maintained, each spouse's credit score impacts the probability of getting joint credit. A prenuptial agreement is a viable way of protecting your assets against your spouse's creditors. Couples already married should try to quickly pay off any existing debts.
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Budgeting
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According to a "Smart Money" survey, spending is the number-two reason why couples fight. One spouse might get blamed for being a spendthrift. In actuality, men and women spend similar amounts but each spends it differently. Where women will spend on groceries, clothes and bills, men might spend on the latest electronic equipment. The difference in how the money is spent distorts how it is perceived, but in reality, the amount is about the same. Having no budget results in unpredictable spending on things you probably cannot afford. A budget helps you to track your income and expenses, and keeps you informed on what you can afford.
Investments
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Couples might argue about which risks to take and may strongly oppose each other's suggestions. The couple should discuss their investment goals together, or consult a financial planner. According to Extension.org, financial advisers generally assume that husbands are more likely to take financial risks than their wives.
The couple should discuss each partner's outlook on risks openly, instead of assuming each others' risk tolerance. They should review their investments no less than once per year to ensure their portfolios are in good standing. If one likes to take financial risks and the other doesn't, they should try to find a balance, such as letting the risk-taker take risks with some of the money, not all of it.
Financial Secrets
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Many individuals keep money secrets, which can indicate problems in a marriage, according to a "CBS News" interview with personal finance author and TV personality Dave Ramsay. Some spouses lie or keep their investments and trading habits a secret from their spouse. These secrets can destroy a marriage; once the partner finds out, trust is shattered.
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References
- Photo Credit couple image by Kanisdha Buasri from Fotolia.com
