Early Financial Argument Could Predict Risk of Divorce

A new study published in the journal Family Relations highlights how the topic of argument could predict the risk of divorce in a couple. The study states that early financial argument could lead to divorce later.

Arguments about money are by far the top predictors of divorce," said Sonya Britt, assistant professor of family studies and human services and program director of personal financial planning. "It's not children, sex, in-laws or anything else. It's money for both men and women."

To prove the hypothesis, a study was done using data of more than 4,500 couples who participated in the National Survey of Families and Households.

The study "Examining the Relationship Between Financial Issues and Divorce" controlled income, debt and net worth and the results showed that how much you made or how much you were worth didn't matter. Arguments about money exist at all levels and it is the top predictor for divorce.

When a couple has a money argument it takes them a longer time to recover when compared to other kinds of argument because they are more intense and the couple tend  to use harsh words at each other.

The relationship satisfaction drops on having financial arguments. Even if they are divorced due to low income, the low relationship satisfaction could be one reason.

"We, as financial planners, can help clients reduce their stress through education," Britt said. "This is important because people who are stressed are very short-term focused. They don't plan for the future. If you can reduce stress, you can increase planning."