By: Liz Strait, PhD
Introduction
A new WSJ article (“Money Can Break a Marriage, Even Getting More of It”) discussed the counterintuitive finding that receiving a positive financial windfall can actually harm a marriage. While we know that financial strain can increase the likelihood of divorce, the research underlying this article finds the opposite: more income can hurt marriages as well. As a Financial Professional it is incredibly important to understand the dynamics across a household--not just the primary financial decision-maker--so that you can help members of a household navigate financial shocks and expectations together.
Background
The effects of financial strain and unexpected expenses are well-documented—as income rises, the likelihood of divorce decreases (Killewald et al., 2023). More recently, it has been found that this also holds for wealth (net worth)—an increase in wealth reduces the probability of a divorce. The most significant effect is seen when transitioning from a net worth of $0 to $40,000.
It would seem to follow, then, that making more money would reduce financial strain and, thus, strengthen the marriage. And it does, in general. However, a closer look at the data shows that these findings are significantly dependent on who in the marriage makes more money and receives the monetary windfall. Specifically, if it is the husband, all effects, short- and long-term, are positive; if it is the wife, however, the effects are negative (Becker et al., 1977; Cesarini et al., 2023). When it comes to unexpected wealth (e.g., winning a large lottery), the short-term negative effect for wives is especially pronounced. If the husband receives a windfall of $140,000, the probability of divorce decreases by 40% in the short-run; if the wife receives the same windfall, the probability of divorce doubles.
Who in a marriage makes more money or receives a monetary windfall is a significant factor in potential marital strain.
While this effect can be attributed to strong gender norms about who should earn the most income in a marriage, it can also come down to ineffective communication, misaligned goals, and how financial responsibilities are shared among couples. For example, if a wife wins the lottery and the husband was, historically, in charge of household finances, the income shock may increase the wife’s interest in how the money is used. This shift in financial responsibility can expose weaknesses in the relationship and potentially lead to divorce. Overall, ineffective communication about finances and unequally distributed financial decision-making responsibility has led to increased rates of marriage dissolution (Olson & Rick, 2022; Ward & Lynch, 2019).
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