Many couples in New York divorce because of disagreements about finances. Unfortunately, there are several common money situations that can lead to the end of a marriage. One issue is poor communication, which can only be overcome if one spouse completely trusts the other to handle the finances. However, this can lead to problems if the financially savvy spouse dies or if the couple divorces. It is better for couples to have a monthly conversation about the family finances.
Another issue is failing to save. The lack of an emergency fund means that most people will eventually run into financial problems, and those problems can put a strain on the marriage. Couples can begin saving up for three months’ worth of income by automatically having a small percentage of their paychecks placed in a savings account.
Some couples actually keep secrets about money, and this can cause issues if the truth ever comes to light. Many spouses also clash in how they think about money. If a saver is in a relationship with a spender, both may need to compromise. Two spenders can also be a problem because they may live above their means even if they have a high income. They might run into money problems as a result.
Couples who cannot resolve their financial differences and are heading for divorce may want to consider how a separation will affect their finances. If the couple has young children, one parent could have to pay child support. If the couple is older, assets such as retirement accounts may be of greater concern. Divorce often leaves people in a worse position financially, in part because maintaining two households is more expensive than maintaining one. Therefore, soon-to-be ex-spouses may want to talk to an attorney about protecting themselves financially.