The money lies ‘ruining’ your relationship ... and what to do about them

Couples are setting themselves up for financial disaster by not managing their joint finances properly ... and some are keeping their money affairs secret.

Couples are setting themselves up for financial disaster by failing to jointly manage their finances, and many admit to keeping their money separate.

Experts say for couples to be financially compatible it is vital they have a joint financial plan of attack and share some money management duties together.

Even if one person is a scrooge and the other a spendthrift, couples need to work as team to make sure their finances stay on track.

New Westpac research quizzed 1000 men and 1000 women and found just 37 per cent of couples manage their finances as a team.

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Despite many couples being happily in love, six out of 10 still have separate bank accounts.

Westpac head of women’s markets Felicity Duffy said once a relationship became serious couples needed to be open and honest with each other about their handling of money.

“You need to talk about your money strengths and weaknesses and what your future goals are,” she said.

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“From there you can work out how compatible you are … or whether money is going to be a bone of contention.”

The research also found that one in 10 people have a sneaky bank account that their other half has no idea about.

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Experts said having your own account bank account isn’t a problem, but lying about money to your partner is.

Ms Duffy said being “open, honest and transparent” with each other was vital, otherwise the relationships could hit the skids.

Pivot wealth financial adviser Ben Nash urged couples to get chatting about money early on in their relationship to ensure “you are on the same financial page”.

“Normally there’s one person that’s more exposed to paying more attention to the financial side of things and more organised,” he said.

“When people are in a committed relationship it’s important they ensure they are heading in the same direction.”

While he said it was OK for one person to take control of handling the household finances, both parties should be “clear on where they are headed financially and approach things jointly”.

If they struggled to do this, they should consider seeking help from a financial expert, Mr Nash said.

The research also found that one in 10 people seek permission from their partner before they make a purchase.

Relationships Australia spokesman Matt Garrett said discussing money with a partner could be complex.

“Ideally it would be good for couples to speak openly about their finances,” he said.

“Money is such a hot issue and it evokes such emotion.”

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Originally published as The money lies ‘ruining’ your relationship ... and what to do about them