For Unmarried Couples, Choosing To Live Together Negatively Impacts Net Worth
Choosing to move in together is a big step in any relationship. For some itâ€™s a symbolic next step towards greater commitment and getting married in the future, while others do it as an alternative to marriage. And while many unmarried couples pull the trigger on cohabitation due to money issues or debt, a recent study reveals doing so can bring upon serious long-term financial restraints.
Researchers from Iowa State University determined that unmarried people who lived with each other had less accumulated wealth compared to those who had never lived together before getting married. This wealth gap was shown to be much wider for people who had cohabited more than once.
â€śWe have to embrace the fact that we are not going back to the days when everyone married at a young age and stayed married,â€ť says lead researcher Cassandra Dorius, an assistant professor of human development and family studies at...
Does this also affect same-sex couples? Now that the sodomite unions are accepted by law in many states, it seems like a good idea for sociologists to study them to see how long they last, how wealthy they are, etc. I think it was on the Moody Radio network where I heard that they have a very high level of wealth and income.
It is interesting the study appears in the Journal of Financial Planning, with the suggestion for a solution: create a new 'cohabitation agreement' which really sounds more like a marriage contract. If you listen to the third most popular radio talk show today, Dave Ramsey's financial solutions, you will hear him field calls from people who are living together without marriage, and he always recommends they get married before doing any financial planning together. His company just finished a long study on millionaires, and it would be interesting to see how marriage worked into that. You could argue a married couple with a million dollar net worth should not be called 'millionaires' since there are 2 people, and each would have only $500,000 if they divorced. They should have a net worth of $2 million to be called Millionaires. But the real question is...did both husband and wife have to work to make this possible? I guess we have gotten past the old restriction that says the woman should stay at home, 'barefoot and pregnant in the kitchen'.
When two people live together without being under any type of solid authority, they are creating a petri dish for diaster. What happens when they have that big fight? They have nothing holding them back from separation, and many times that is what happens. Meanwhile being under the rule of marriage creates a bond that cannot be so easily destroyed. It makes the two people have to work together, and forces thems to go the better route of working it out, rather then the stresses and problems with a divorce...