According to PRLog, credit card debt may be the cause of divorce. I’m inclined to agree that debt, not just credit card debt can put that kind of strain on a marriage. Below is a list of six financial mistakes couples make:
- Merging finances.
- Personal debt before marriage.
- How much money is spent, how much money is saved.
- Unwise investments/lack of retirement funds.
- Secret spending.
- Not planning for emergencies.
In my opinion a couple should never merge all their finances. Marriages should consist of her money, his money and our money and saved money. Having your own money takes care of the problem of how much money is spent or secret spending because if you have your own money you don’t feel the need to get permission to spend. You will retain some financial autonomy.
Personal debt before marriage needs to remain “personal debt.” We fall in love and want to do for the other person, take help with financial and emotional issues but we need to be wary of taking on another person’s debts…no matter how in love we feel. This is a serious issue and should be discussed in detail before marriage.
Most reading this site are facing some of the issues discussed in this post. Most are probably wishing they had communicated more clearly their stance on such issues before marriage. Communication about what to spend, what to save, what investments to make and how to deal with any debt that will be brought into the marriage can keep a marriage intact. If marriage hasn't ruined your credit there is a good chance going through a divorce will. Handling those finances properly can not only keep you out of debt, it can keep you out of the divorce court.
Thanks for posting. I think that few couples consider the gross financial burden divorce can bring, and a bad credit rating can complicate things exponentially.