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Married … With Finances
Couples are seeing their financial dynamics change . How do their advisors keep track of changes and play fair ?
By Ben Mattlin
ACCORDING TO THE NONPARTISAN Pew Research Center , the percentage of women who are the sole or primary breadwinner in a mixed-gender marriage has tripled over the past 50 years , from 5 % to 16 %. At the same time , couples with equal earnings power ( those in which neither partner brings in more than 60 %) jumped from 11 % to 29 %.
But don ’ t let those numbers fool you . How couples divide household and financial responsibilities has nothing to do with who earns more , the study found .
For advisors who work with married clients , it can be hard to keep up with the ever-shifting power dynamics . Here are a few expert suggestions about how to check your assumptions , tailor communications accordingly , sidestep marital discord , and keep from losing clients .
Who Makes Financial Decisions ?
Scott Rick studies marital finances as an associate professor of marketing at the University of Michigan ’ s Ross School of Business in Ann Arbor . He says a couple ’ s income differences are unlikely to tell you anything about whose preferences carry more weight .
In fact , he says , some research suggests that the partner with more free time is the one who typically becomes the household CFO , while other studies imply that whoever has greater confidence in his or her financial understanding ( whether or not that confidence is justified ) tends to dominate financial discussions .
But focusing on who is in charge in financial matters may be the wrong tactic . “ I don ’ t believe it ’ s necessary to clarify the power dynamic of a couple ,” says Emily Franco , a financial advisor at Fort Pitt Capital Group in Pittsburgh . “ You should always assume that both partners are making the decisions .”
Equality And Balance Consequently , she says , addressing one partner more than the other will only alienate your married clients .
Crystal Cox , a senior vice president at Wealthspire Advisors in Madison , Wis ., agrees . “ As a woman , I have been in several meetings where the professional only looks at and talks to my husband , even if I ’ m the one asking the questions ,” she says . “ This always leaves a bad impression — to the point of my not wanting to work with that person anymore .”
To head off potential offense like this , many advisors start by asking couples simple , open-ended questions such as , “ What brought you in today ?”
“ After one partner answers , I always turn to the other and ask if there is anything he or she would like to add ,” says Bob Schneider , senior vice president and director of financial planning at Johnson Financial Group in Milwaukee .
That ’ s a good way to avert the cardinal error of making
30 | FINANCIAL ADVISOR MAGAZINE | SEPTEMBER 2023 WWW . FA-MAG . COM