Once upon a time you met someone special, you fell in love and after a while, started a life together. Financial decisions were made, although quite often they just happen rather than being a conscious choice. And life was good.
For many relationships, life continues to be good. Sure, you navigated some rocky patches, but you have grown together as has your love and the money. For other relationships, life isn’t so rosy and couples fall out of love and want to divide the money.
Here are some common relationship money mistakes we see.
Money mistake #1. Never ever, ever sign legal documents without taking legal advice, regardless of who is putting them in front of you.
Money mistake #2. Handing over total control of your finances to your partner.
Trust is a wonderful thing and the sound basis for any relationship. But if you’re going to hand over control, you need to make sure that you still know what’s happening. Have regular catch up sessions. Keep communicating. Keep an eye on bank accounts. If you’re in business, both attend meetings with the accountant and other advisors. If you can’t understand financial statements find someone who can to help you interpret them.
Money mistake #3. Delegation by abdication.
Not only have you handed over control of your financial situation to your partner, you don’t want to know what’s happening. In the early stages of the relationship this is usually due to trust—your partner has skills, you don’t, so you happily leave them to it.
But at some point, if the going gets tough (financially I mean), instead of getting involved and taking part in the decision making, you continue to ‘not want to know’. You don’t want to accept the fact that you may have to change your lifestyle because the business has hit a bad patch. Or, you continue in blind faith believing the assurances that “things will be fine” and you happily retreat into your bubble.
Money mistake #4. You simply don’t talk about money.
You skirt around the topic. Maybe snap at each other about what you have or haven’t spent. But you don’t actually sit down and have a conversation about money and really make joint financial decisions.
Money mistake #5. Not understanding each other’s money personalities and how your they can be a strength in your relationship instead of a conflict.
The moral of the story?
Don’t let love cloud your ability to make sound common sense financial decisions. Keep the lines of communication open at all times. If you aren’t sure about something get some professional advice.
If you would like us to help you to explore your own relationship with love and money and that of your partner, drop us an email or click on this link to find a day and time that suits you to have a chat with us – it’s completely free!
While you’re here, take our free Money Personality quiz.