When it comes to finances, many millennial couples are forgoing the traditional route of joint bank accounts and choosing to keep their money separate; it is one of the many generational trends we are experiencing in society. Here, the qualified divorce attorneys at Rodier Family Law discuss how millennials are changing the status quo of finances in marriage, financial implications of divorce and how to navigate the hardships of separation while remaining financially sound.
Technology Has Altered the Payment System
Financial technology, or fin-tech, has become a staple for many millennials. According to one study, 73% of millennials said that they would prefer to use apps such as Apple Pay, Amazon, or PayPal than their traditional bank. With simpler methods of payment transfers available, couples going through a divorce can use this to their advantage. For example, recently separated couples who share children have the ability to use these payment methods for child support, rather than meeting with their ex-spouse in person to provide funds or acquire bank information. Furthermore, using digital spreadsheets or budgeting applications can help ex-spouses co-parent with a layout of the financial responsibilities of each after divorce. Finally, technology provides the opportunity to keep records and a trail of financial history, so that if one party fails to meet the duties assigned during divorce, the other party is able to provide documentation of this negligence.
Many Millennials Are Keeping Their Finances Separate
Throughout the past 30 years, the divorce rate has been climbing, and although there has been a decrease in divorce rates in the past ten years, many millennials have seen their parents go through trials and tribulations in the midst of a divorce. As a result, many millennials have made the decision to be more careful when it comes to combining finances after marriage. Individuals who have seen their parents go through a divorce have also likely seen the complexity in dividing assets when getting separated. If finances are combined, having your name on a deed to the house or other personal property does not ultimately mean you have full control over it. If there have been years of combined finances in a marriage, it is likely that they have a higher number of assets to be divided. If this divorce is not amicable, the frustration of dividing property can make the process seem overwhelming. In turn, around 37% of millennials are choosing to keep their finances separate in marriage to prevent potential hardship.
Millennials Are Putting Financial Stability First
In addition to keeping finances separate as a preventative measure, millennials are placing a priority on financial stability before marriage. According to one survey, 55% of millennials do not want to marry until their finances are in order. While this is delaying the average age of marriage, it can help reduce stress in the early stages of a marriage where both parties are not financially stable. Around 80% of millennials have told their partner how much debt they have, and are aware of their partner’s debt. Sharing both previous financial hardships and future goals can set a strong foundation for growth in a relationship, allowing both parties to work together to achieve financial independence from the start.
See How the Qualified Attorneys at Rodier Family Law Can Help You
Finances are a common issue in many divorce cases, even though some of these issues can be prevented with smart and proactive financial planning. That is why millennials are changing the status quo when it comes to finances in marriage, and providing insight for others who may be struggling. If you are in the process of separation, seek legal counsel from the qualified divorce attorneys at Rodier Family Law, and contact our Bel Air office today.