"If money be not thy servant, it will be thy master. The covetous man cannot so properly be said to possess wealth, as that may be said to possess him." - Francis Bacon

SavingAdvice.com Blog

Bridging the gap between saving money and investing


Join Now or Login

Relationships

How Much Does a Divorce Really Cost?

By Leave a Comment

how much does a divorce cost

Most people know divorce can be costly. Along with having to divide a couple’s assets, both parties have to contend with a variety of expenses, including costs such as filing fees, lawyers, and certain services. If you want to know how much a divorce costs, here’s how to estimate what you may need to pay.

How Much Does the Average Divorce Cost?

A typical divorce in the United States costs around $15,500. The average hourly rate for a divorce lawyer comes in at $250.

However, there are a lot of factors that determine how much a divorce costs. In some cases, it is possible to get a divorce for less than $500. In others, it can cost $30,000 or more to divorce a spouse.

The Factors That Determine the Cost of a Divorce

How much a divorce costs depends on a variety of factors. For example, where you are getting a divorce plays a role, as different states (and even counties) may charge different fees.

Additionally, if you opt for a do-it-yourself divorce, you’ll spend less than if you need to hire a lawyer. Similarly, deciding to use mediation or a collaborative divorce may be less costly than the traditional approach.

Whether you have children or not also impacts the final price tag. Plus, if you and your spouse generally agree on the major points, such as the division of assets, child support and custody arrangements, and similar considerations, the process may be less expensive than it the situation is more contentious.

The need to go to trial also makes a divorce more expensive. If you can avoid going to trial, you can save money on your divorce.

How Much Does the Least Expensive Divorce Cost?

While the actual cost varies by location, a divorce can cost $500 or less. However, both parties must agree on all major issues, a circumstance known as an uncontested divorce. Additionally, one of the parties will need to create their own divorce papers.

Usually, fill in the blank divorce papers can be purchased as part of a kit or you can use an online service to draft your own paperwork for a fee. In some cases, you can actually get a packet from your local court or state website for free or merely for the cost of printing, allowing you to save as much as possible.

Once the documents are ready, the person filing will need to pay a filing fee. These vary by state. In California, one of the most expensive states for filing for divorce, filing a petition for dissolution of marriage costs generally costs $435. In Mississippi, the cost is only $113.

However, if the filing fee is genuinely unaffordable, many states allow you to submit a form and request a waiver. Usually, you will have to show proof of financial hardship to qualify for a waiver, though it is worth pursuing if you are a low-income household or experiencing significant financial difficulties.

You also need to pay a fee to have the other party served with the papers. Again, this typically varies, though isn’t as costly as the filing fee.

Hiring a Lawyer to Handle Your Divorce

When you need to hire a lawyer to assist during your divorce, the lost goes up dramatically. In most cases, attorneys charge by the hour, so your exact cost will vary depending on the amount of work they have to do to handle your case.

Hourly rates for lawyers are commonly several hundred dollars, with some even exceeding $500 an hour. They usually charge for a variety of activities, including the time spent on phone calls, emails, text messages, paperwork preparation, legal research, preparing for depositions and discovery, preparing for court, and representing you on the day of your hearing.

However, you do not have to use a lawyer for every part of your divorce. For example, you can opt to only use an attorney for the creation of your paperwork, allowing you to gain access to their expertise for just that task.

Other Costs: Mediation or a Collaborative Divorce

Using mediation or collaborative divorce is less expensive than the traditional option that involves going to trial. If you go the mediation route, you and your spouse get together with a neutral third party who helps you resolve any disputes.

If you choose a collaborative divorce, both parties will need an attorney. However, you will attend meetings together instead of going to trial, working to resolve any issues until an agreement is reached.

The cost for mediation or a collaborative divorce can range from a few thousand dollars to $9,000 or more, depending on how complex the case is and how many meetings are necessary. But, in most cases, it is cheaper than going to trial.

What If We Have Children?

If you have children, you can use any of the options above to get divorced. However, it makes the case more complex as you have to address items like custody agreements, visitation, and child support.

Essentially, if you have kids, expect it to cost more than if you were a couple without children. The only exception may be if you choose to use the do-it-yourself approach, though there could still be additional fees or requirements that add to the overall cost.

Is a Legal Separation Cheaper Than a Divorce?

In many instances, a legal separation costs about the same as a divorce. You still have to create formal documents and file with the court, so those charges are usually similar to those associated with a divorce. Similarly, if you use mediation or lawyers to come to an agreement, you won’t be charged less just because it isn’t a divorce.

However, if you believe that you may reconcile, then a legal separation may be a better option. With a legal separation, you remain legally married but are able to create separation between your lives formally. Under this agreement, you are not allowed to get remarried unless you choose to divorce. You also have legal rights to inherit from one another and to certain benefits, like Social Security.

Plus, a legal separation is reversible. If you resolve your issues and wish to reconcile, you can file to remove the legal separation. With a divorce, the dissolution of the marriage is final. If you ultimately reconcile, you would have to remarry legally to reestablish the union.

Are you divorced? How much did getting divorced cost you? Share your experience in the comments below.

Read More:

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

You Need More Than Money to Join the Upper Class

By 32 Comments

 

join the upper class

I used to think social class was directly tied to wealth — if you were rich, you were upper class; if you were poor, you were lower class. If you were neither rich nor poor, you were middle class. Of course, even then I had a sense that because “rich” and “poor” are such relative terms, a rich person has more money than I do, a poor person has less, that most of us think of ourselves as middle class even if we’re not.

My parents own a home in a retirement community in Florida. The people there dress down, get involved in all kinds of activities — everything from a kitchen band (whose members play utensils like instruments) to a rowing crew — and are generally pretty friendly. You might consider them middle class, but many have accumulated more wealth than the average American, and they maintain two homes, one in Florida and one up north.

Upper Class vs. Middle Class

Once when we visited my parents, my husband and I drove to a nearby community (also inhabited mostly by retirees) for dinner. The entire atmosphere there was different. Everything about the neighborhood shouted, “Upper class!” The buildings were fancier, the clothes dressier, and the people not as friendly. My parents’ neighborhood has several athletic courts, a community building, and boat docks; the other community boasts several blocks of restaurants and boutique shops. As we strolled down the streets, where I felt a bit uncomfortable in my middle-class clothes, it struck me that many of the people who lived there could have a lower net worth than my parents and their neighbors. They might be upper class, but they are not necessarily wealthy — in fact, they could be deep in debt.

Social Class is More Than Just Your Net Worth

I finally realized that social class is not just about how much money you have, but also about how you spend your money and how you present yourself. Earning a high salary is not enough to break the bonds of social class, nor is winning the lottery. Those who are born to the upper class have the advantages of being taught from infancy upper-class social skills and vocabulary and of being surrounded by the things (clothes, furnishings, etc.) that signify good taste. Anyone who wants to be a part of the upper class, but is born in a lower class, must be a sharp observer who can understand and imitate the social graces of the upper classes. (Incidentally, those of us in the middle and lower classes also learn the social skills, vocabulary, and tastes of our respective classes, but few people try to imitate us.)

Class and wealth are closely related, and it’s unlikely that someone in the upper class is broke or that someone in the lower class is a millionaire. If you knew that Bill had $10 million net worth and Bob had $10 net worth, you could probably guess which class each belonged to. However, Bill might wear his hair in a mullet, decorate his home with velvet Elvises, and invite all his friends over for NASCAR parties, while Bob makes a high salary but spends it immediately to pay the mortgages on three homes, a vacation in Europe, and new Dolce & Gabbana suits.

Do Appearances Matter?

A reader commented that looking poor may prevent you from socializing with wealthy people, who can help you increase your own wealth. This argument has some merit. Appearances and actions do mark us as members of a particular social class and, in some sense, actually make us part of one class or another. However, not all wealthy people are part of the upper class, and not all upper-class wealthy people will refuse to socialize with you just because you are not wealthy or upper-class, as well.

Many middle-class people and even some lower-class people have accumulated a great deal of wealth. Socializing with wealthy people of the class in which you feel comfortable can be of more benefit to you than trying to fit in with a group of people who not only make more but also spend more than you do. Middle-class, wealthy people have contacts who can help you find a better job; they also know how to save and invest the money they do earn. Advice from them could be even more valuable than advice from someone who spends their income on all the trappings of the upper class.

I often wonder why so many people think upward mobility is a goal worth the effort. To fit in with the upper class, not only would I have to learn how to act differently from the way I grew up, but I would also have to spend a lot of money on the right clothes, the right car, the right home, and the right education. And even if I do learn to fit in with members of the upper class and benefit from their wealth-gaining insight, I still might not be able to increase my income enough to cover the extra expenses.

Why Do People Overspend On Upward Mobility?

Juliet B. Schor, The Overspent AmericanJuliet B. Schor, in her book The Overspent American, argues that we spend more money on socially visible goods, largely because we fear “falling down” to a lower class. Ironically, overspending almost guarantees that we will fall if we lose our source of income. If we already spent all our money to buy prestige, we would have nothing left to buy necessities. I wonder why we don’t fear climbing up the social ladder instead. After all, it costs a lot to live like someone in the upper class. Plus, moving into a new social class requires a new way of presenting ourselves, and when that happens, there’s no guarantee that we will still feel comfortable with our old friends in the social class where we used to be at home.

I’m not arguing for a caste system. I certainly believe we should be free to move from one social class to another, and I enjoy interacting with people from all social classes. I also have nothing against anyone whose goal is to be part of the upper class. But I, for one, am happy in the middle class. I’d rather maintain my position here, where I already feel comfortable being myself, and maybe one day I will have enough money to retire to a nice, middle-class retirement community in Florida.

Photo credit: Flicker.com/ caribb

Read More:

10 Important Things Money Can’t Buy

By 32 Comments

things money cant buy
We talk a lot about money: How to get it, how to spend it, where to spend it, and how to save it. For all the time we devote to talking about, worrying about, and dealing with money, you’d think it was the most important thing in the world. If the time spent obsessing about money truly equated to its worth, there would be nothing you couldn’t do or have without money. Money would be the only thing that mattered. But is money really as valuable as our obsession level leads us to believe?

Money Can’t Buy Everything

Money is important, obviously. Without it we’d have no roof over our heads, food in our bellies or clothes on our backs. Money allows us to do and have more things than we can without it. It’s a means to an end. But, for all that money is useful and good to have around, for all that it can buy, there are quite a few things that it can’t buy. Even if you have millions of dollars, there are some things you’ll never have with money alone. So what can’t money buy? Here’s 10.

1. Lost Time

Money cannot buy back lost time. As each day passes, it is lost and you can never get it back. When you miss that chance to say, “I love you,” to someone special, or you tell your kids, “Not now, I have to work,” that opportunity is gone. No amount of money that you make in the future will get that day, that moment, back.

2. Happiness

It’s a cliche that money can’t buy happiness, but it’s also true. It can buy you some fun and fleeting joy-a cool vacation, a big TV, a fast car-but it can’t buy the true happiness that comes from liking yourself, having stable relationships, and good a familial support system.

3. Happy, Well-Adjusted Kids

Money can buy your kids a lot of clothes, toys, and gizmos, but it can’t turn them into secure, responsible, well-mannered, intelligent people. That only comes from the time you spend with them and the things you teach them. Money might help with some aspects of parenting, but it’s been proven many times that kids, once their basic needs are met, benefit more from parents spending time with them than the amount of money spent on them.

4. Love

It’s another cliche that money can’t buy love, but a true one. Money can buy initial attraction or even lust, but “true” love comes from mutual respect, caring for each other, sharing experiences, and growing together. There’s a reason that people who marry only for money rarely end up happy. Love at it’s best functions regardless of whether you have a lot of money or very little.

5. Acceptance

True, you can buy things that make you fit in-the latest cars, clothes, shoes, or electronics — but these things don’t represent true acceptance. If you really want your peers to accept you (beyond high school where a pair of shoes really does make you part of the in crowd), you’d do better to focus your energies on making yourself valuable to those around you. Being a good friend, a kind and helpful person, and someone who excels at what they do will go further in gaining acceptance than the stuff money can buy.

6. Health

Money can buy healthcare and medicine, but it cannot replace health once it’s lost. It’s far better to take preventative action such as watching what you eat, exercising, not smoking, and getting regular physicals than to rely on money to save you once your body has started to fail you. Money also can’t buy back your youth. No amount of money you make in the future will replace those days when your body could do anything easily and look good doing it. You can spend thousands on “treatments” to preserve your youth, but it’s an illusion. Once your youth is gone, no amount of money will get it back.

7. Success

Some people succeed by being slimy and paying/bribing their way to the top. But these are the exceptions, and I would hope you wouldn’t aspire to that. Success comes from hard work, applying your gifts in the best way possible, and paying your dues to move ahead in the world. There is very little that money can buy you to help you succeed. It might be able to buy you some training or equipment, but the majority of your success is determined by the work you put in, not the money you spend.

8. Talent

People are born with certain talents. Money can certainly nurture a talent. You can buy music lessons or coaching sessions to nurture your talents, but money cannot buy a talent. You can learn to do certain things well — I’ve learned to play the piano after years of lessons — but you can’t buy the true gift to do it well. Even after years of lessons, I don’t have the ability to make the piano truly sing, whereas others in my family have had that talent from birth.

9. Class/Manners

There are plenty of rich people who are rude and crude and plenty of poor people who demonstrate perfect manners and respect for others. And vice-versa. The amount of money you have doesn’t determine whether you behave well or poorly. You can’t buy manners and classy behavior; parents and family members who want to see their offspring behave well in society teach and practice it at all levels of society. Money doesn’t confer good behavior. Money can buy you entry into a better class position, but it cannot make you behave with class.

10. Peace

If money could buy peace, I think we’d be there by now. Think of the amount of money that governments have spent over the years in the name of “peace.” Has it worked? Nope. Peace isn’t something you buy. I think peace only comes from acting fairly, humanely, and treating others (people and countries) as we would want to be treated. And even then, it might not be possible. But for sure money won’t buy it.

Considering What’s Really Important

I’m not suggesting you give up the pursuit of money and go on some monastic quest for deeper meaning. It is important to manage your money well, to educate yourself about money, and earn enough to secure your financial future. However, it pays to stop and think every now and then about the things you would still have even if you didn’t have money. How much money you have doesn’t determine your family, your health, and your gifts and abilities. There are things that no amount of money can buy and it’s worthwhile to pursue them even as you worry about money. Money is important, but maybe it’s not the most important thing in the world.

Is there anything else money can’t buy? Share with us in the comments below!

Read More:

(Photo Credit: Flicker.com/Photo4jenifer)

10 Inexpensive Alternatives to Flowers at Funerals

By 19 Comments

alternatives to flowers at funerals

Romantics will tell you that fresh flowers are perfect objects of condolence because they symbolize the beauty and brevity of life; allergics will tell you that they would prefer their sniffles and tears at a funeral to be from grief. Whichever position you hold, I hope you’ll agree with me that fresh flowers can cost a lot for the amount of time they last – which are just a couple of the reasons you might want to consider other alternatives to flowers at funerals.

10 Inexpensive Alternatives to Sending Flowers

When the deceased was well known, a grieving family may receive so many flowers that they hardly notice the particular arrangement you lovingly selected. Often, other means of condolence can be better appreciated and less expensive than fresh flowers.

  1. Send a potted plant. For those who want to stick close to tradition, consider sending a potted plant from your garden in a basket or pot from a thrift shop; grieving family members can transplant your gift into their yard and have a lasting memorial to their loved one.
  2. Donate to charity. This is becoming more common; many obituaries will suggest a favored charity to receive gifts in lieu of flowers. If no charity is suggested, be sure to choose one the deceased would appreciate; don’t give to PETA if his favorite meal was surf and turf or donate to a church if she was an atheist.
  3. Housesit during the funeral. Consider housesitting during the funeral, particularly if you did not know the deceased well but are close to a family member. Sometimes homes of grievers are targets for burglars who browse the obituaries looking for names of family members and funeral times.
  4. Offer babysitting services. Likewise, many families could use a babysitter during the funeral. Families with children too small to attend the funeral would greatly appreciate having someone they know to stay with the young ones so that everyone else can attend. If you plan to attend the funeral yourself, offer to take the kids away for a few hours while the adults make funeral arrangements.
  5. Write a letter. Tell the family how much you appreciated the person who died. A letter works well if you were closer to the deceased than to the family. Tell stories about their loved one that they might not have heard; recall fond memories so that they have an opportunity to smile during a sad time.
  6. Create a photo collage. You may be able to display a photo collage of the deceased at the meal for the funeral. A collage gives mourners something to gather near and often sparks memories for those who see it.
  7. Cook a meal for the family. If you don’t cook well, consider putting together a tray of lunch meat (assuming they are not vegetarians) so that the family and those who visit during the days following the death have something to prepare easily when they get hungry. (Food is often the last thing on their minds.)
  8. Offer to help with laundry or run errands. It’s difficult to manage these duties alone while planning the funeral or managing details of the estate. One fewer thing on a to-do list can be a big relief for someone who is grieving.
  9. Offer correspondence services. If you know the family well, offer to make a list of names and addresses of everyone who sent condolences, to make calls to far-away friends and relatives who might not have heard about the death, or even to answer their incoming calls for a while so they can rest.
  10. Stick around. Mourners often say that the hardest time is after the funeral when all the commotion has died down, and they are left alone. Be sure to check in on a friend who has lost a loved one several weeks and months after the funeral. Call or send cards each month saying, “You’re still in my thoughts and prayers,” or make a point to schedule more frequent visits if your friend now lives alone.

Remember, each person mourns differently. Know the person you are trying to comfort and offer what will be most appreciated. Some will want to talk; others will need some space. If you’re not sure what to do, consider asking your friend how you can best help him or her get through the difficult grieving process.

Do you have any other ideas for alternatives to sending flowers? Share them in the comments below.

Read More

Enabling Self-Indulgent Adult Children Is Not Good Parenting

By 115 Comments

About 10 years ago, a woman I know gave up a high paying job in Connecticut because she felt she could not handle the stress. She moved to rural Florida for a few years, lived with a guy she had met in high school in a house that her parents bought, and basically became substantially unemployable – not that she was looking for a real job. She held various low-level jobs until the economy started to slump.

Over the course of the past decade, she has broken off her relationship with her high school “friend” and grown increasingly dependent on her now 70-year-old parents. They started by paying for her home and then her health insurance. Finally, about six months ago, the parents sold the house and had their daughter move in with them. They now cover all of her insurance and living expenses, while she works to earn just enough money to go out with her friends.

 

The parents are not made of money. Indeed, the recent economic slump has made money a bit tight for them, as their investments have shrunk. Still, they do not stop paying for their daughter’s needs and many of her wants. (It is only recently that she gave up a $500 per month lease on a luxury car!) They even co-signed a loan for the daughter’s ex-boyfriend’s truck but, fortunately for them, he paid off the truck on his own.

When Did Children Stop Taking Care of Elderly Parents?

If we look back at history, the idea of elderly parents taking care of the financial needs of adult children is quite new. Until quite recently, just the opposite was true, and parents could hope for at least a modicum of support from grown children when the parents reached a certain age. Now, it seems that the number of adult children who are relying on parental support is growing by leaps and bounds.

Parents should not have to support adult children who are not disabled. Enabling self-indulgent and selfish behavior in adult children is not even good parenting. An adult who finds a better paying job will enjoy a higher standard of living. An adult who takes a pay cut will need to make sacrifices. Just because an adult wants to take a pay cut, however, should never mean that his or her parents should be the ones to make sacrifices.

Given our current economic climate, there is no justification for an adult child to live off of a parent’s largesse. Supporting an adult child is a very bad decision, especially if the parents do not know if they have sufficient funds to support the child for the rest of his or her life as well as themselves for the rest of their own lives.

If You Have Children, What Should You Do?

If you are a parent supporting an adult child, you cannot show junior to the door without a transition period, of course. Set up a plan so that you can wean your child off of your expense account. Give the child a period of time to find a job, to save some money and then to move out or to start paying their own rent. Offer emotional support and guidance, but cut off the ready flow of funds. Make being a dependant unpleasant, but don’t stop showing your love for the child.

Do you have any other advice for caring for adult children? Share it with us in the comments below!

Read More:

Parents Need to Learn How to Not Spoil Children
Parents: Teach Your Children about Money Because Schools Won’t
Should Parents Pay for Their Children’s College Education?

(Photo courtesy of Ludovic Bertron)

How a Polygamous Relationship Can Impact Your Finances

By 9 Comments

polygamous relationship

Finances can be complex in any relationship. Even when they just involve two adults. However, when you add a third, fourth, or even more partners to the mix, things can quickly become even harder to manage.

The presence or lack or primary partners – a relationship that is given priority over the others – can play a factor. Additionally, if there are any children. Whether the partners live together or separately also impact the financial side of the relationships.

If you are wondering about the financial ramifications of having multiple partners. Here is an overview of the kinds of relationships that exist. Also, here are some of the complexities that come along with them.

Bigamy vs. Polygamy vs. Polyamory

Many people confuse the terms “polygamy,” “bigamy,” and “polyamory,” using them interchangeably. However, while a polygamous relationship is polyamorous and may involve bigamy. A polyamorous relationship is not necessarily polygamous or have anything to do with bigamy.

Bigamy involves attempting to legally marry more than one person. In the US, bigamy is illegal. A person can only be legally married to one other person. Bigamy is a form of polygamy.

Polygamy is also illegal in the US. Polygamy can occur when a person enters into a relationship that is treated as a marriage. This occurs while they have a marriage-like relationship with someone else. A polygamous relationship could involve two people who are legally married.  As well as a third or more people who they treat as spouses, even if they have not attempted to marry them legally. This means polygamy may or may not also involve bigamy.

In general, polygamy was made illegal because of common law marriage statutes in various states. In a common law marriage, a relationship can have legal rights and protections similar to an actual marriage. Even if they pair never obtained a marriage license or got legally married. If more than two people live as married, then they could all be deemed part of a common law marriage. This type of marriage is not legal.

Polyamory is different. It is simply a form of nonmonogamy. This may not involve any marriages, either legal, common law, or otherwise.

While romantic relationships may exist between more than two people in polyamory. Each relationship is not necessarily treated as a marriage. For example, a woman may be legally married to one partner while having another partner who is treated like a boyfriend or girlfriend. Alternatively, a woman may not be married at all. She may choose to maintain romantic relationships with more than one partner.

Polyamory is not illegal as long as the relationships don’t transition into a polygamous or bigamous state.

The Financial Implications of a Polyamorous Relationship

Handling finances while being part of a polyamorous relationship can be complex, but also highly varied. One of the biggest factors in how things are handled tends to be cohabitation and whether any two people are married or living as such.

Cohabitation can mean that certain costs need to be split. For example, sharing a portion of the rent or mortgage payment responsibility may be necessary. Similarly, utilities, cable, and internet costs might be managed collectively.

However, even if two members are married or living as married, they may choose to maintain separate bank accounts to manage their income. Comingling finances is not a requirement of marriage, and a separation may make things easier to manage between primary partners and any additional relationships they maintain.

Often, if a couple is married and polyamorous, and choose to comingle their finances, then it’s wise to budget for expenditures on other partners. This can help set limits on how much each person can spend on their other relationships, ensuring enough money is available to handle joint obligations.

Cohabitating Couples

Alternatively, a cohabitating primary couple may choose to maintain a joint bank account for shared financial responsibilities and separate accounts for their spending. This can function similarly to the budgeting approach for entirely comingled finances, but may provide for some additional privacy.

In some cases, members of polyamorous relationships may choose not to cohabitate, even if they maintain a primary relationship. In these scenarios, each individual may be solely financially responsible for their homes, bills, and finances. This means joint budgeting isn’t necessary, and each person can spend what they like based on their needs and preferences.

There is also nothing to say that every member of a larger polyamorous relationship couldn’t cohabitate together. However, this can make it hard to maintain a legal separation between polyamory and polygamy, particularly in states where common law marriage exists.

Often, this means that strict financial boundaries may need to be in place. For example, sharing a bank account between more than two members of the relationships, or having multiple two-person accounts with different partners, could blur the legal lines. Additionally, estate planning can be complex if you wish to leave something to non-primary partners.

Understand State Laws

Ideally, anyone in or considering a polyamorous relationship should review their state’s laws regarding common law marriage and polygamy. That way everyone can understand what actions may cross into the polygamous arena, allowing all members to avoid any legal penalties for the relationships.

It may also be wise to consult with a lawyer for estate planning or large joint financial purchases, such as a house, as they may be able to provide guidance to ensure no legal boundaries are incidentally crossed.

The Financial Implications of a Polygamous Relationship

A polygamous relationship can come with all of the financial challenges of a polyamorous relationship and then some. First, since polygamy is illegal, there are potential legal costs that can occur in regards to the relationship’s existence. For example, lawyer and court fees may be expenses that must be managed.

Additionally, in polygamy, more than one relationship is treated like a marriage. This could mean multiple partners all cohabitating and sharing the responsibilities of managing the household, or that some parties are full members of multiple households.

Setting multiple budgets may be necessary to manage a polygamous relationship. This is regardless of how many people earn an income. If there is more than one physical home. Anyone who is part of multiple households may have to divide their income. Everyone must pull their weight, which can complicate the financial aspects of the relationships.

If everyone cohabitates, a single budget may be sufficient. However, spending limits on non-household expenses is necessary to keep everyone financially on track.

The Complexity of Estate Planning

Estate planning will also be complex if everyone cohabitates in a home at least one party owns. Especially, since more than one relationship is treated as a marriage. This is one of the reasons polygamy is illegal, as the legal complexities are hard to navigate. However, with an estate plan, certain issues are resolved. But, if one party chooses to fight against the plan at the time of one family member’s death, it may not be easy to reach a resolution.

Ultimately, polygamous and polyamorous relationships do come with financial impacts. By openly communicating and planning, it is possible to come up with viable solutions. These are solutions that work for a person’s lifestyle. However, if the relationship is legally polygamous; there are numerous hurdles along the way. It’s wise to avoid crossing into that territory.

Do you have something to add to the information above? Share your thoughts in the comments below.

Looking for more helpful articles to help you manage your finances? Here are more great articles:

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.