April 23, 2024
Money

Are YOU keeping money secrets from your partner? Finance guru Suze Orman warns rise in ‘financial infidelity’ is crippling women’s savings (and explains why they should ALWAYS get a pre-nup!)


It’s an age-old question guaranteed to spark debate: how much should you tell your partner about the state of your finances? 

The answer, claims personal finance guru Suze Orman, is absolutely everything – otherwise you may be guilty of ‘financial infidelity.’

The 72-year-old media personality warns a rise in partners lying to each other about their spending habits is spearheading divorces and it is often women who pay the price. 

‘Financial infidelity is just as bad as personal infidelity,’ Orman – who hosts the podcast Orman Women and Money – told DailyMail.com.

‘And we are seeing much more of it because, in my view, more women are the main wage-earners. And the husbands can’t handle that so they’re hiding more and more.

Personal finance guru Suze Orman claims a rise in partners lying to each other about their spending habits is spearheading divorces and it is often women who pay the price

Personal finance guru Suze Orman claims a rise in partners lying to each other about their spending habits is spearheading divorces and it is often women who pay the price

‘Just the other day I had an email from a woman whose husband had taken $18,000 out of their joint account to give his adult children from another marriage.

‘They don’t have enough money to pay their bills. They have credit card debt. It was all the money they had but he was never going to tell her he did that.’

A recent survey by Bankrate found that 42 percent of US adults have kept financial secrets from their significant other. 

This is despite the fact more than a quarter of those guilty believe keeping financial secrets from a romantic partner is as bad as physical cheating.

Orman said one of the worst cases she had seen involved a man who pretended to go to work every day – only for his wife to discover he was actually unemployed and living from a family trust fund.

She added: ‘Years ago it would be men writing to me to say ‘my wife is hiding all this credit card debt from me.

‘But now 40 years have passed and women have progressed economically and the reverse is true.

‘If you’re in a relationship where one person has all the power and is making all the financial decisions, you are heading for a divorce so fast I can’t even tell you.’

A recent survey by Bankrate found that 42 percent of US adults have kept financial secrets from their significant other

A recent survey by Bankrate found that 42 percent of US adults have kept financial secrets from their significant other

According to a 2022 study by market research firm Harris Poll, around 15 percent of engaged couples now have a pre-nup, up from 3 percent in 2010

According to a 2022 study by market research firm Harris Poll, around 15 percent of engaged couples now have a pre-nup, up from 3 percent in 2010

Orman recommends that women always sign a prenuptial agreement – no matter their income.

According to a 2022 study by market research firm Harris Poll, around 15 percent of engaged couples now have a pre-nup, up from 3 percent in 2010. 

But Orman claims this still isn’t enough. She argues that all women should have one – and make sure they don’t sign it ‘on the way to the chapel.’

And for women who are already in the throes of a divorce, her advice is: hire a high-powered attorney.

She said: ‘So many women say they don’t want to get into a nasty fight. But they should – they should take everything they are legally divorced.

‘And if they’re weighing up whether they want to keep the house in the settlement they should think very carefully about whether they can afford the home? Can they afford the terms of the mortgage and the property insurance?

‘I often tell women – depending on their circumstances – to take the money and just go rent somewhere. Start afresh.’ 

How do pre-nups work in the US? 

The extent to which a pre-nup is enforced can depend on the state the couple reside in. While all 50 states officially recognize the agreement, many disagree on the specifics.

For example in California, if the contract concerns spousal support, both parties must have had legal representation at the time of signing in order to enforce.

The majority of states enforce ‘equitable distribution’ in divorce – meaning assets are split by what a judge believes to be a fair manner. 

However, nine abide by a ‘community property’ law which dictates spouses must split all assets acquired during the marriage 50/50. These states include: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin.

 Some 689,308 divorces occurred across 45 US states in 2021, according to the latest available data, with couples spending on average $7,000 to dissolve a union.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

SUBSCRIBE TO OUR NEWSLETTER

Get our latest downloads and information first.
Complete the form below to subscribe to our weekly newsletter.


100% secure your website.