Pre- or post-marital agreements may help prevent money problems

Pre- or post-marital agreements may help prevent money problems

On Behalf of | May 31, 2022 | Marital Agreements |

Money and miscommunications about how to spend it often place strain on a marriage. If financial issues remain unresolved, increasing stress levels could lead to a divorce. GoBankingRates.com reports that many adults grew up in households that did not have positive conversations concerning finances. Growing up in a family with an inability to constructively discuss financial matters could make it difficult to do so as an adult.

With changes in gender roles and earning potential, some husbands find themselves struggling with emotional issues when their wives earn higher incomes. A 2020 survey by TD Ameritrade discovered that 21% of married women earned more money than their spouses. Only 26% of couples earned equal incomes. Pre- or post-marital agreements may, however, help prevent income-earning differences from becoming the cause of an acrimonious divorce.

An agreement could address potential financial conflicts

A SunTrust Bank survey of married couples found that 35% of the respondents admitted to money causing the most stress in their relationships. The stress often becomes compounded when couples do not openly discuss their financial issues.

Secretive spending habits could ruin a relationship. According to TD Bank, 32% of survey respondents had a financial secret. Individuals admitted to keeping a large purchase or high credit card debt to themselves. Revealing negative spending habits and including ways to curtail them in a pre-or post-marital agreement could prevent future conflicts.

Agreements could foster stronger relationships

Discussions concerning finances make many individuals feel uncomfortable. Avoiding them, however, could result in marrying an incompatible individual. As noted by U.S. News, creating an agreement helps couples discover and discuss their credit cards, debt levels and monthly expenses.

Pre- and post-marital agreements could help create budgets and plans for major purchases. Retirement discussions may also help couples strengthen their relationship through a shared commitment to reach a long-term financial goal.