Money Saving Expert (MSE) founder Martin Lewis is warning couples that they need to consider the ‘three Ds’ and ensure that they are both ‘financially compatible’ with each other, urging young people to do one thing if they pay bills together.
Speaking on his latest podcast, Marriage & Divorce, the financial guru said that whilst some couples share bank accounts and others keep things seperate, if you’re young and in a certain position, you may want to sit down, discuss money and think if the worst happens, will the other person know what to do.
He explains: “I get it all the time and it’s generally the second biggest cause of divorce, after infidelity. We’re not talking about it, but I think financial compatibility is really important. There’s an idea that everything needs to be shared but there are methods of sharing, especially in this modern world where people get married later than they used to, and they’re used to financial independence.”
As part of a wider discussion on the topic, Mr Lewis added: “I tend to find much older people, joint bank accounts work for, as in you have one account between the two of you and that’s it. Whereas for younger people, I tend to say you have your individual bank accounts and a joint bills account that you both agreed to put money in.”
However, if there is a financial imbalance where one is a high earner and the other, for example, has decided to go on maternity leave and look after the child from home for the next five years, “then you have a payment that goes each month from the higher earner to the lower earner but you don’t just do it all in one account and that’s because psychologically, we have different money personalities.”
The expert further said that you may find youself in a relationship where “you have a spender married to a saver and the saver is saving and the spender is spending their savings, that is a cause of arguments” with Lewis adding that all couples need to discuss their finances and you can also have a lead finance person.
This is good as if either partner is hit by one of the three Ds – divorce, dementia or death – the other person can take over if they have to, stressing it’s good to sit at the kitchen table and discuss everything should the worst happen.
