For decades, it’s been thought that financial stress is among the main causes of divorce. Sure spouses fight over money. One spends too much while the other doesn’t earn enough. But is financial difficulty a major culprit in the filing of divorce? Recent university research says, no.
Jan Anderson, an associate professor at California State University, wrote his doctoral dissertation on the subject. Like many Americans, Anderson’s parents divorced when he was a child. And like many, he believed in the notion that money problems are among the leading causes of divorce. As an adult he even taught courses in personal finance to help people develop better money skills to save their marriages.
When Anderson researched his dissertation, he only found a single survey indicating that money was the cause of divorce. This survey dated back to 1948! It was taken by postwar women who claimed “nonsupport” as reason for their divorce. Back then “nonsupport” was one of the few grounds on which divorce could be filed. Nowadays, more women have their own income and there are many more grounds for divorce, including the non-specific catch all “irreconcilable differences.”
Anderson also found a 12-year study conducted from 1980–1992, which indicated money problems were experienced in divorcing marriages. However, a closer look at the results indicated that money was not the cause for the divorces themselves!
In response to this, Anderson states, “If we look at all the causes of divorce, financial problems can only account for 5% of the effect.” However, Anderson is quick to speculate that using “money” as a talking point in discussing divorce with friends and family is easier than focusing on the real reasons, which include “incompatibility, abuse or sexual problems.”
Regardless of whether finances were responsible for the filing of divorce, you must protect your financial interests during the process. We are here to ensure you get fair and equitable distribution of marital equity. Here are a few suggestions to help the process from the onset.
Cancel Joint Credit Cards
Before you cancel jointly-held credit cards, don’t let your spouse know you intend to do so. In the five minutes it takes to cancel your cards, your spouse could charge thousands of dollars to them. Pleasantly inform them that the cards have been canceled after the fact. Jointly held cards are your responsibility too, so you may be responsible to pay some or all of the debt.
Safeguard Joint Bank Accounts
Angry spouses commonly “clean out” joint bank accounts. Before you’re left with nothing, remove half of the account balance and open a new individual account at a different bank with those funds. Notify your spouse that you’ve taken your portion of the account by sending a written letter.
Don’t Contribute to Your Retirement Accounts
It’s likely that your spouse will be entitled to some or all of the money in your retirement account and pension plan, including IRAs and 401(k). Go to your employer and ask for the forms needed to stop your regular contributions. This will keep the portion of your savings that your spouse may be entitled to from growing.