Financial Reasons Couples Get a Divorce
Money and finances can put a strain on any relationship. Indeed, recent research into reasons for divorce, and from our own experience with clients, money and finance is one of the biggest factors as to why people are moving into the territory of divorce, with one-third of adults reporting money as a source of conflict in their relationship.
Money affects everyone, no matter your income status or background.
In fact, finances and arguing about money can be the most damaging aspect of a relationship, as both partners will have their own perspectives on spending and saving. And, unfortunately,
without compromise, these tensions can soon begin to rise.
In this post, we explore money and finances further and look at areas to be aware of to avoid financial disputes in your relationship.
Financial Reasons for Divorce
Varying Views.
It is not uncommon for couples to hold opposing views regarding money and finances. However, it is these views that can see long, drawn-out arguments form.
Money can mean many things, from security to status, lifestyle, and being able to buy “stuff.”
Having different financial priorities regarding how you spend your money and how you want your partner to spend it can often be an area of great contention.
It’s important to understand each other’s views on spending and saving, respect these, and look for compromises where possible. Ideally, you need to be on the same financial page and have shared goals that you both want to work toward.
Financial Secrets.
Any form of secret in a relationship is a recipe for disaster, but having secret bank accounts, hiding receipts, hiding large purchases, secret credit cards, etc., will most certainly lead to being the main reason for divorce.
All relationships are built on trust and respect; however, with financial secrets, you will lose both of these instantly.
Not talking about debt.
As one of the leading financial disputes law firms in Ipswich, we find that a lot of relationship issues arise when communication breaks down. Not communicating properly about the debts you have and how these are being managed can cause further problems later down the line. Debts such as student loans, car loans, credit card debt, etc., should all be discussed to avoid putting extra strain and tension on the relationship.
You need to communicate and agree on an approach to spending and how debts will continue to be paid off, or else the relationship will struggle to move forward. It is vital that you have open and honest conversations about money and finances if you are to build trust and confidence in one another.
Spending habits.
We all have different spending habits, and as a couple, it’s good to agree and compromise on spending before it becomes a problem.
For example, is one partner making major impulse buys without communicating first and ideally making these together?
Living beyond your means.
Poor purchasing and spending decisions will lead to further debt and problems.
Often, the biggest factor in this is buying a house that is financially too big and not being able to afford the mortgage repayments comfortably.
With all of your income ploughed into the house, there’s not much left for any social activities or spending on things you like to do together, which can lead to a serious breakdown in the relationship and divorce for financial reasons.
Think about developing a budget and holding each other accountable.
Think about combining bank accounts.
When it comes to bank accounts, we advise you to think practically.
Often, combining accounts can be a source of conflict, especially if one partner earns more than the other, or one spends more than the other, etc.
The most effective option is to keep your personal account with both parties paying into a joint account, which has been agreed upon upfront.
There are also tax advantages to maintaining separate accounts.
Unexpected bills.
Major unexpected expenses can be a significant source of contention between couples. Anything from home repairs, care for a relative, medical emergencies, etc., should all be discussed as “what if” scenarios beforehand. Hence, both parties are on the same page if and when these situations arise.
If there’s no agreement, it will cause problems.
Financial baggage.
Is one partner entering the relationship with debt while the other is debt free?
Unless you can agree to manage these together or find a workaround, this will always cause disagreement.
There can also be a power play in certain situations, where one partner works and the other doesn’t, or maybe one earns more than the other, or one partner comes from money, etc.
Both partners must work as a team for the relationship to work, with communication, honesty, maturity, and empathy at the heart of all of this.
Work too much.
Are you or your partner spending too much time at work and making money? This will undoubtedly affect relationships as you ultimately have no time left for each other.
Our financial disputes law firm in Ipswich recommends trying to find the perfect work-life balance for your relationship and overall well-being.
Getting a divorce for financial reasons
Arguments about money can cut deep and cause a lot of stress. Couples need to talk openly to one another, which, when it comes to money, can be uncomfortable, but it is necessary.
And the more conversations you have, the easier it will get. When relationships breakdown or start to breakdown, communication can however become a real issue.
Our professional Ipswich financial disputes lawyers know that counselling and mediation can sometimes work; however, we also understand that divorce may be the only option if the relationship has completely broken down.
But, with this comes a new set of financial issues.
For example, couples will have to agree on dividing their financial assets, including bank accounts, property, vehicles, etc.
To support you and your family during these times is family law specialists, Gillbanks Family Law
Professional, knowledgeable, and experienced in all areas of financial disputes, Ipswich, we listen to your situation and offer the most suitable solutions to move forward.
To book your initial appointment with us, call 01473 937 888 / 01206 299 282