According to a new study, the key to a long happy marriage may lie in couples consolidating their finances. Study authors in Indiana found that married couples with joint bank accounts argued less about money, felt more confident about household financial management, and reported better overall relationship satisfaction. Couples sharing resources also felt more unified and committed to shared goals.
Researching long, happy marriages
Researchers from Indiana University’s Kelley School of Business were the first to demonstrate a causal relationship between marital happiness and combined finances, although previous studies have suggested a connection.
“When we surveyed people of varying relationship lengths, those who had merged accounts reported higher levels of communality within their marriage compared to people with separate accounts, or even those who partially merged their finances,” says Jenny Olson, an assistant professor of Marketing at Kelley, in a university release. “Considering the significant shifts we observed over two years, this is compelling evidence for the benefits of merging finances. It certainly warrants a discussion with your partner.”
The study followed 230 engaged or newly married couples over two years as they started their lives together. The average age of these partners was 28, with a predominantly White demographic (75%), and 12 percent identifying as Black. Approximately 36 percent had a university education, and the average combined income was $50,000. Each couple knew each other for about five years and had been romantically involved for an average of three years. Ten percent had children.
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At the start of the study, everyone maintained separate bank accounts and agreed to consider changing their financial arrangements. This was the first marriage for all participants. Some couples were randomly instructed to keep their separate bank accounts, while others were advised to open a joint bank account. A third group was given the freedom to decide for themselves.
After two years, couples who opened a joint bank accounts reported significantly higher relationship quality than those who kept separate accounts. The researchers believe that merging finances encourages greater alignment with financial goals, increased transparency, and a shared understanding of marital responsibilities.
“A communal relationship is one where partners respond to each other’s needs because there’s a need. ‘I want to help you because you need it. I’m not keeping track.’ There’s a ‘we’ perspective, which we theorized would be related to a joint bank account,” Olson explains.
Do separate finances lead to divorce?
Olson adds that couples with separate accounts tended to view financial decisions as more transactional.
“It’s a mindset of ‘I help you because you’re going to help me later.’ It’s quid pro quo, which we see more often with separate accounts. Separate accounts also led people to believe it is easier to leave the relationship.”
The study had a dropout rate of 20 percent, with a significant percentage of couples who separated choosing not to merge their bank accounts.
The findings are published in the Journal of Consumer Research.