Finance

Breakup good for finances?

According to her, this improvement can be explained in particular because at the time of separation, people are forced to acquire new skills. Thus, if before it was the spouse who took care of the couple’s finances, now everyone must manage their own money.

“People after their divorce are more on the lookout for their expenses, their bill payments, their tax return, etc. They are forced to establish a budget. And when you take care of your finances, you end up getting rich quite simply, ”says Samia Medelci.

Indeed, this seems to be true, since more than half of respondents (57%) admit to spending less since their divorce.

Money, a reason for divorce?

The survey reveals above all the negative effects associated with not talking about finances as a couple. Thus divorced couples are less likely to have discussed money regularly during their marriage than married couples. Only 29% of divorced couples surveyed talked about money, while 50% of married couples broached this subject every week.

“This proves that talking about it together and meeting with an advisor for help is always a good idea,” emphasizes Samia Medelci.

Indeed, the couples surveyed say they turn to a professional for advice on investments (20%), debt repayment (12%) and retirement planning (12%). Millennials also say they seek help from a home buying advisor. They are 19% to do so, against 9% in the other demographic categories.

Millennials, a generation apart

Interestingly, millennials approach money and love differently than other generations. They are more likely than other generations to not pool their finances, as follows: 49% do not have a joint account and 63% do not have a joint credit card.

“Their tolerance threshold in terms of finances is lower,” also notes Samia Medelci. Indeed, the respondents of this generation affirm that they would not hesitate to leave their partner if this one:

  • never offered to pay anything (86%);
  • never talked about their finances (81%);
  • did not seek financial advice from a professional (77%).

“Many millennials are at a stage in their life where there are pivotal stages – marriage, children, buying a house – which represent big financial decisions, analyzes Melissa Leong, in a press release. It is important for people in a relationship to talk openly about money, or even to call on a professional to make sure they are on the same wavelength when it comes to financial goals. »

No more secretiveness!

Finally, it is interesting to note that more respondents are hiding financial secrets – such as a secret bank account, debts or large purchases – from their partners than last year. More than a quarter (28%) say they do, an increase of 8% compared to 2020, and 64% never intend to reveal this information to their partner.

To avoid divorces and disputes, Samia Medelci believes that transparency is essential. “My advice would be to have calm, calm discussions about finances,” she says, not hesitating to add that an advisor could help with that.

“Budgeting is also always a great practice for managing a couple’s finances. It is also essential to plan for the major events in life together: buying a house, the children’s studies, retirement planning, etc. These events are planned,” she concludes.

About the author

on100dayloans

Leave a Comment