COSTA MESA, Calif.,
Feb. 14, 2017 /PRNewswire/ -- Love is
not in the air for everyone on Valentine's
Day — approximately 50 percent of marriages end in divorce.
In a recent national survey, Experian® explored whether
finances play a role in divorce and how divorce affects consumers'
financial health in the aftermath. Findings show it is a big issue,
both during the union and after splitting up.
Fifty-nine percent of divorcees surveyed say that finances
played at least "somewhat" of a role in their divorces (20 percent
believe it played a "big" role). Also, 36 percent say their
spouse's credit score was a source of stress in the marriage.
Unfortunately, many consumers are not aware there are many
resources available that can help them better manage their finances
together such as Experian's education blog.
"It's important for couples to discuss finances before saying 'I
do,' and to communicate frequently. Couples should also make sure
they agree when it comes to financial practices such as budgeting
and how to utilize credit throughout the marriage," says
Rod Griffin, director of Public
Education. "Individually, each partner should make sure to be
engaged with the household finances so they can protect themselves
and their assets if the relationship ends."
Those surveyed also regret not learning more about their future
spouse's financial habits, prior to walking down the aisle. A
majority of both women and men — 71 percent and 60 percent,
respectively —said their former spouse's spending habits were
different than what they anticipated before they married.
Furthermore, couples' finances are often negatively impacted by
divorce, with the average financial loss reaching nearly
$20,000 (in cash and assets).
Furthermore, 44 percent of survey respondents say their former
spouse ruined their credit. As a result, for many respondents (39
percent), the financial loss of a divorce has them going so far as
to say they'll never marry again. Those that may consider tying the
knot again at a later date say good credit is an important quality
for a potential spouse (73 percent).
Other key survey findings
- 59% of respondents regret not being more financially
independent in their marriage.
- 54% say their former spouse spent too much money, and that was
the financial issue that played a role in their divorce.
- 53% say they were not financially compatible with their former
spouse.
- 50% say their former spouse ran up credit card debt on joint
accounts.
- 49% say their credit got worse during their marriage.
Tips for managing the financial fallout post-divorce
Emma Johnson from
Wealthy Single Mommy:
"Separate your finances from
your soon-to-be ex-spouse ASAP. This is a time when you need more
credit than ever, to rent or buy a new home, get a new car, set up
utilities, and finance divorce lawyers. Identity theft is
incredibly common during a breakup, as is plummeting credit scores
due to confusion and conflict over who is responsible for which
accounts. Protect yourself - it is very common for divorcing
partners to rack up debt on accounts with both parties names
attached."
Diana Shepherd from
Divorce Magazine:
"Creating a budget will
eliminate the guesswork about what you can and can't afford both
during and after your divorce. You need to determine what your
current living expenses are and how you'll pay for them; potential
sources of income include your own earnings and spousal and/or
child support. In addition to regular living expenses, you need to
budget for professional help from a divorce lawyer, mediator,
financial professional, etc. If your income from all sources won't
be enough to cover your living expenses and divorce-related costs,
you need to take a hard look at your expenses and see where you can
trim them."
Mandy Walker from Since
My Divorce:
"Get your credit report. This is the best
way of knowing what credit accounts are open in your name and
whether they are held by just yourself or jointly with another
person. Use the report to help you complete the financial
disclosures required as part of the legal process. It's critical
that these disclosures be as accurate as possible. You can also use
the report to guide you through discussions with your soon to be ex
about how any debit balances will be handled and whether the
account will be closed or kept open."
Before finding the perfect mate, make sure as an individual you
have a good relationship with your finances. Take our interactive
quiz to find out if you and your money are in wedded bliss or
headed towards financial frustration.
For more information on budgeting, as well as how debt can
affect credit scores, visit the Experian Credit Education blog.
Consider enrolling in a credit monitoring service such as Experian
CreditWorksSM, which can help you better track and
manage your credit report and credit score.
About the survey
The online survey was conducted by
Edelman Intelligence on Experian's behalf from Nov. 2 to Nov. 15, 2016, among 500 adults who
have gotten divorced within the past five years, are 18 years of
age or older, and reside in the United
States. This online survey is not based on a probability
sample; therefore, no estimate of theoretical sampling error can be
calculated. For complete survey methodology, including weighting
variables, please contact ann@pitchpublicrelations.com.
About Experian
Experian is the world's leading global
information services company. During life's big moments — from
buying a home or a car to sending a child to college to growing a
business by connecting with new customers — we empower consumers
and our clients to manage their data with confidence. We help
individuals to take financial control and access financial
services, businesses to make smarter decisions and thrive, lenders
to lend more responsibly, and organizations to prevent identity
fraud and crime.
We have 17,000 people operating across 37 countries, and every
day we're investing in new technologies, talented people and
innovation to help all our clients maximize every opportunity.
Experian plc is listed on the London Stock Exchange (EXPN) and is a
constituent of the FTSE 100 Index. Learn more at
http://www.experianplc.com or visit our global content hub at
https://www.experian.com/blogs/news for the latest news and
insights from the company.
Experian and the Experian marks used herein are trademarks or
registered trademarks of Experian Information Solutions, Inc. Other
product and company names mentioned herein are the property of
their respective owners.
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SOURCE Experian