One in five couples keep and manage their money separately—and are more likely to break up than couples with joint finances.
A new survey from Policygenius finds 20 percent of people who don’t mingle money with their partner plan to leave the relationship due to financial issues, compared to only 4 percent of couples who manage money together.
“All couples are different and should manage money in the way that works best for them,” Policygenius staff reporter Hanna Horvath said in a statement. “But keeping separate financial beds is different than keeping financial secrets. A lack of transparency and communication is likely the real driver of money-caused relationship issues.”
Whether they keep joint or separate finances, the company found many Americans are short on details about their partner’s financial health.
- About 30 percent don’t know their partner’s salary.
- Almost 38 percent don’t know their partner’s debts, assets or spending habits.
- Almost half don’t know their partner’s credit score.
- Around 43 percent don’t know their partner’s retirement savings.
Plus, almost 24 percent of all survey respondents said they don’t share major accounts with their partner, including checking accounts, savings accounts, credit cards, mortgages and auto loans.
The survey delivers other valuable insights as to how couples’ approach to family financial planning is evolving. Just over 2 percent of respondents reported having a legal separation plan or prenuptial agreement in place.
Meanwhile, only 10 percent said they can’t afford to leave their partner, whether or not they want to.