For love or money

The study states that marriages end in divorce more often because of money concerns than other reasons like children, in-laws or even sex.

“Even though couples spend a lot of time getting to know each other, they rarely ever place emphasis on determining their financial compatibility.

”It is a delicate topic, especially in the beginning stages of a relationship. But getting to know your spouse’s attitude towards money is just as important as finding out whether they’re interested in having kids one day,” says Bonita Erasmus, owner of MatchVIP, Relationship Specialists.

Image courtesy Stock.xchnge

So what is financial compatibility? Being compatible means getting along and having similar values. When we bring finances into the mix, this means taking into account spending and saving patterns. The question then lies in whether both partners place the same value on money.

It is important to know what one is getting into financially before getting married. Historically, marriage used to be an economic transaction which preceded the act of love. Today, it works the other way around.

Some individuals place an emphasis on saving and building wealth. They feel more comfortable when there are financial systems and structures in place. Others tend to place an emphasis on lifestyle and living in the now. If one of the partners is not living within their limits and spends excessively, there is bound to be an impact on the financial status.

“As a couple, one needs to put together a financial plan – where does a couple see themselves in 10 years; how are they going to get there? This will ensure that both partners are working towards the same goal. If the lifestyle choices and financial vision is not compatible, then problems are bound to crop up,” adds Erasmus.

MatchVIP recently conducted a survey to determine whether couples felt that a shared bank account or independent bank accounts were required when entering into a serious relationship. The results highlighted that 80% of respondents felt that independence was key, especially when it came to finances.

Les, a business man from Johannesburg says: “My last marriage broke up because I entrusted all the funds to my ex, thereby having one account. The end result was a phone call from the lawyers to sign my house over as collateral, against credit card debt, which I was not aware off.”

“In relationships, both parties need to find what works well for them. The younger generation are far more independent and wait longer to get married. Joint bank accounts are a thing of the past and will send most young and independent professionals running,” says Erasmus.