Money and Divorce

Money and Marriage are complicated and unique. Knowing how to balance money issues between the people joined together in matrimony can be quite the challenge. There is good news, however, when both parties are committed and armed with the proper knowledge, couples can win with money, and avoid ending up in divorce court. Recent studies show at least 20% of marriages fail within the first 5 years, and at least 50% of divorces are due to disagreements over money. This also includes issues due to credit, debt and the overall differences in values where money is concerned. One of the leading cause of marriage and relationships issues according to the American Psychological Association is financial stress. Americans are experiencing stress related to money at least a third of the time, but don't be dismayed. As a result of those statistics, more Americans are now tuned into prioritizing financial goals, managing, planning, and being on the offensive as opposed to the defensive regarding money.  Below are five tips on planning and organizing your money, and when followed carefully, you and your spouse can win with money. For newlyweds, make sure the checklist below is discussed and agreed upon before committing to marriage.

Prioritize financial goals
Disclose all debts and other Financial Obligations
Delegate Bill Paying
Make a Budget
Plan for Retirement

Think savings, retirement, building wealth, and college if you have children. Keep bills low and if at all possible, live according to the 50/20/30 rule. 

50%           -     Expenses (Think housing, food, cars, utilities, etc.)
20%           -     Savings & Retirement
30%           -     Lifestyle 

Don't forget to set up an Emergency Fund. Start with at least $1.000, and work to build 3-6 months of your net income, in case you are faced with an unfortunate crisis or catastrophic event, such as an illness, or job layoff, etc. This could take some time, but keep working on it, and be sure to use it only for emergencies. Also, check out money expert websites for more ways to win with money.