Law Office of Lori Crystal, LLC
Financial Issues Play a Major Role in Some Divorces, Study Says
Spouses may come into a marriage with very different attitudes regarding their finances. For example, one spouse may be a saver, setting money aside for a rainy day, while the other spouse may be a spender. This can cause friction in a marriage that could ultimately lead to divorce.
Experian conducted a study in 2017 examining the role a couple’s financial situation played in their decision to end their marriage. The study found that nearly 60 percent of respondents reported that financial problems were “somewhat” of a factor in their decision to divorce. Moreover, 20 percent of respondents reported that financial problems were a “big” factor in their decision to divorce. Currently, across the United States, around 40 to 50 percent of marriages will end in divorce.
Prenuptial agreements, known as premarital agreements in Colorado, may be one way for couples to address financial issues before they become a problem. However, the legal site Avvo reports that only 2 percent of those married in the U.S. executed a prenup prior to walking down the aisle. That being said, the American Academy of Matrimonial Lawyers surveyed attorneys and found that the number of couples executing a prenup has gone up five-fold over the last two decades. Prenups are valuable not just because they simplify property division and support issues should the couple divorce, but also because they open the door to honest and open communication about finances that could serve a couple well throughout their married life.
So, it may be a good idea for a couple to consider executing a prenup prior to their marriage. And, for those married couples who did not execute a prenup, post-nuptial agreements may still be an option. Because financial issues play such a big role in many divorces, it can only help to try to address these issues before they become a problem, and executing a prenup may be one way to do this.