Divorce, commonly referred to as the dissolution of marriages involves the cessation or termination of marital unions or marriages (Cruze, 2018). Divorce involves the reorganization or cancellation of legal responsibilities and duties of marriage, thereby, dissolving matrimony bonds amid a married couple under a specific country’s rule of law. There are significant variations of divorce laws globally, although, in many nations, divorce requires a court sanction in a legal procedure which may incorporate aspects such as property distribution, alimony, child support, alimony, child custody, the division of debts, and child visitation arrangements. The reasons or causes of divorce also vary significantly amid families. Some of the common reasons of divorce include sexual incompatibility, infidelity, lack of effective communication amid couples, unrealistic expectations, lack of equality amid spouses, lack of intimacy, abuse, and money. The paper will delineate the impact of finances on divorce rates.
Money is often cited as one of the primary reasons for the increased rates of divorce globally. During the year 2017, Ramsey Solutions, a principle organization in financial education, carried out a study involving over 1000 respondents (U.S adults) to understand the issues involving personal finance attitudes and behaviors amid spouses and how married spouses communicate and relate with regards to issues concerning finances. According to the study by Ramsey solutions, disagreements due to finances ranks second among the leading causes of divorce (Cruze, 2018). The outcomes of the study reveal that lack of communication and high debt levels are the primary causes for anxiety and stress surrounding a household’s finances (Cruze, 2018). The research revealed that the higher a couple’s debt, the higher the likelihood of associating financial issues with the primary cause of disagreements in the household (Cruze, 2018). According to Cruze (2018), around half of the respondents with a consumer debt of $50,000 and above stated money as the key reason behind their arguments. The respondents with great marriages were twice as likely to outline money as a critical cause of disagreements within the household.
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Another 2017 survey on divorce and financial debt, conducted by MagnifyMoney and involving around 500 respondents (divorced U.S adults), revealed that finances play a significant role in the divorce rates in the U.S (MagnifyMoney, 2017). Among the study’s respondents, twenty-one percent cited money as the primary cause of their divorce (MagnifyMoney2017). The study by MangifyMoney (2017) indicated that the respondents with high-income levels were likely to cite finances as the primary reason for their divorce. Amid individuals who earned $100,000 and above, thirty-three percent cited finances as the reason for their divorce. On the contrary, only twenty-five percent of individuals with earnings between $50,000 and $99,000 cited money as the reason for divorce. Low-income earners ($50,000 and below) were least likely to cite money as a cause of divorce. Approximately eighteen percent of low-income earners cited finances as a factor in their divorce. Overspending amid married couples has also been cited frequently as a cause of divorce. According to MagnifyMoney (2017), around thirty percent of the respondents who cited money as their primary cause of divorce further cited overspending as the common issue they had to face in their marriages. Overspending may easily lead to increased credit balances in instances where one runs out of cash. MagnifyMoney (2017) also delineated credit card debt as the second most prevalent financial issue among the respondents. In instances where debt and overspending becomes a major problem in marriages, spouses are usually compelled to hide their bad money habits and financial mistakes from each other.
In conclusion, household finance is usually cited as one of the primary reasons for the increased rates of divorce globally, second to infidelity. High levels of debt, overspending, and increased levels of income amid spouses are among the primary financial factors that lead to divorce in the United States. Proper management of a household’s finances and effective communication regarding various financial aspects is, therefore, critical in the sustainability of marriages.
References
Cruze, R. (2018, February 7). Money Ruining Marriages in America: A Ramsey Solutions study. Dave Ramsey . Retrieved from https://www.daveramsey.com/pr/money-ruining-marriages-in-america
MagnifyMoney (2017). Divorce and Debt Survey . Retrieved from https://www.magnifymoney.com/blog/featured/money-causes-21-percent-divorces925885150/
