Bloomberg Wealth: How to Avoid Breaking Up Over Money (2024)

FAQs

Bloomberg Wealth: How to Avoid Breaking Up Over Money? ›

If people are being more transparent about their feelings around money that's beneficial for everyone in the long run. She recommends that couples set aside time regularly to talk about finances called a “money date,” where they can go over their goals and discuss how to reach them.

It's estimated that financial problems contribute to 20-40% of all divorces. That means that for every 10 marriages that end in divorce, four of them are because of money.

A relationship where you constantly fight over money is not good for anyone. While it is possible, particularly with the help of a therapist and/or financial coach, to work through money issues, many couples end up separating because the stress is too much. When it comes to money, communication and honesty are key.

Lack of commitment is the most common reason given by divorcing couples according to a recent national survey. Here are the reasons given and their percentages: Lack of commitment 73% Argue too much 56% Infidelity 55%

“I think it's almost not fair to split finances 50-50 without taking into account your partner's financial situation,” said Daigle, who is also a member of the CNBC Financial Advisor Council. “It's really important to get a better financial picture of what's going on with your significant other.”

According to a study conducted by Qualtrics on behalf of Intuit Credit Karma, more than a third of Gen Z and millennials say they would break up with their partner if they did not share the same money values as them (38% and 36%, respectively).

50-50 Bill Split

Splitting shared bills down the middle is one of the easiest approaches to a joint financial life. Each person pays half. This straightforward approach makes budgeting as a couple consistent. Each person pays half the rent, subscriptions or insurance from individual accounts.

Open communication about money is essential to a healthy relationship. Many strive to achieve it by combining at least some of their finances and keeping joint accounts. Others, however, prefer to keep all of their accounts separate — and that's especially true for younger generations.

In many cases, becoming broke is caused by two factors. Firstly, you may not be earning enough money. Often, this occurs suddenly after losing a job, getting sick, or being injured. Or, in some cases, you're underpaid or unable to work as much as you would like.

How to financially separate? ›

A recent survey of nearly 1,000 couples who are married, engaged, or in a relationship found nearly 75% said they had gotten mad at their partner because of a financial decision they made.

39% of couples had combined all their finances, 39% kept things completely separate, and 22% did a partial combination. A final survey I can bring to your attention is conducted by creditcards.com with a sample size of 2,404 adults. In their survey, they found that 43% of couples had only joint accounts.

A new Bankrate study says about 42% of people are already doing just that. It's called "financial infidelity" an expert said there are ways you can overcome this challenge.