Category: Divorce

Divorce, mental health, psychology, social

‘Financial infidelity’

What defines it, who is at risk, and what are the consequences?

Romantic partners aren’t always honest about money in their relationships, but when does hiding purchases, debt and savings constitute “financial infidelity”? Research by professors at four universities, including Indiana University, defines the concept and provides a means for predicting its occurrence within relationships.

“Love, Lies and Money: Financial Infidelity in Romantic Relationships,” in the Journal of Consumer Research, is the first systematic investigation of financial infidelity in committed romantic relationships.

The professors define financial infidelity as “engaging in any financial behavior that is expected to be disapproved of by one’s romantic partner and intentionally failing to disclose this behavior to them.” It involves both the financial “act” and the subsequent concealment.

It differs from secret consumption and merely hiding spending because it involves a broader set of financial behaviors, including seemingly “positive” actions such as saving extra income in a personal bank account.

“Financial infidelity has the potential to be as harmful for relationship health and longevity as sexual infidelity, as conflicts over money are also a primary reason for divorce,” said co-author Jenny Olson, assistant professor of marketing at the IU Kelley School of Business. “Given the role that finances play in the health of relationships, consumers benefit from being aware of financial infidelity and its consequences.”

Growing in popularity is financial therapy, which combines finance with emotional support to help individuals and couples think, feel and behave with money to improve their overall well-being, make logical spending decisions and face financial challenges.

“An understanding of financial infidelity can benefit financial services companies and advisors, clinical therapists and relationship counselors, all of whom play a role in promoting consumer well-being,” Olson said. “If couples seek professional financial advice, they must be willing to openly discuss their spending and savings habits, debts and financial goals. It is clear that financial infidelity is a barrier to effective planning, as well as to a healthy relationship.”

The researchers developed a “financial infidelity scale (FI-Scale)” using a dozen lab and field tests. Key findings included:

  • Whether the financial act is expected to elicit any level of disapproval was more important than the degree of disapproval.
  • Consumers more prone to financial infidelity exhibited a stronger preference for secretive purchase options, such as using a personal credit card versus a jointly held card, and cash over credit.
  • A preference for ambiguous packaging and shopping at inconspicuous stores.
  • A greater likelihood of concealing financial information from their partner in a mobile banking app.

Each choice is relevant to marketers. The prevalence of financial infidelity among consumers and variations along the FI-Scale affect purchasing decisions. It is important that companies be aware of certain consumer segments that may be prone to financial infidelity and thus affect their bottom lines.

For example, the trend of businesses going “cash-free” may affect retailers such as beauty salons and gift shops because of the use of cash to disguise purchases. Consumers strategically using cash may be less willing to make purchases only for their pleasure or personal wants.

Other authors on the study are Emily Garbinsky, assistant professor of marketing at the Mendoza College of Business at the University of Notre Dame; Joe J. Gladstone, assistant professor of consumer behavior at the School of Management at University College London; and Hristina Nikolova, the Diane Harkins Coughlin and Christopher J. Coughlin Sesquicentennial assistant professor at the Carroll School of Management at Boston College.

IU Research

Indiana University’s world-class researchers have driven innovation and creative initiatives that matter for nearly 200 years. From curing testicular cancer to collaborating with NASA to search for life on Mars, IU has earned its reputation as a world-class research institution. Supported by $680 million last year from our partners, IU researchers are building collaborations and uncovering new solutions that improve lives in Indiana and around the globe.

Autism, Divorce

Autism and Divorce

Study Details Autism’s Heavy Toll Beyond Childhood on Marriages

Photo by Eric Ward

The parents of grown children with autism are more likely to divorce than couples with typically developing children, according to new data from a large longitudinal study of families of adolescents and adults with autism.The study, published in the August issue of the Journal of Family Psychology by researchers from the University of Wisconsin-Madison’s Waisman Center, paints a new picture of the prospects of long-term marital success for parents raising a child with autism.

The study is the first to track marital history of parents of adult children with autism. It reveals that, in contrast to previous assumptions, parents do not have a greater risk of divorce when their son or daughter with autism is young.

However, as the child with autism grows into adolescence and adulthood, parents are more likely to divorce than are parents of typically developing children. Although findings reveal diminished prospects for a lasting marriage for parents raising a child with autism, the majority of marriages in this study survived. The study compared the marital fates of 391 couples — the parents of adolescent and adult children with autism — to a sample drawn from another large longitudinal study, the National Survey of Midlife in the United States (MIDUS). The goal of the study was to document the rate and timing of divorce of parents of children with autism, explains Sigan Hartley, a UW-Madison assistant professor of human development and family studies and lead author of the report.

The study revealed that the divorce rate for parents of children with autism mirrors the divorce rate of the parents of children without disabilities until the child reaches 8 years of age. After that, the divorce rate goes down for parents of children without disabilities but remains high for parents of children with autism.“There seems to be a prolonged vulnerability for divorce in parents of children with autism,” says Hartley. “Typically, if couples can survive the early child-rearing years, parenting demands decrease and there is often less strain on the marriage. However, parents of children with autism often continue to live with and experience high parenting demands into their child’s adulthood, and thus marital strain may remain high in these later years.”

Autism, also known as autism spectrum disorder or ASD, has symptoms that vary considerably in severity between individuals, but core characteristics of the disorder include difficulty establishing and maintaining social relationships, delayed communication skills, and repetitive motions such as rocking back and forth and hand flapping. Children with autism frequently require high levels of care and continue to live with parents as adults.

“There is a lifelong profile of challenging behaviors and symptoms associated with autism,” Hartley notes. “Few developmental disabilities appear to be more taxing on parents and there is a great need for support services for families when the child is an adolescent and adult. Providing support for couples to help them work on their marriages is an obvious step. If we can get information and support to these families, we hope to be able to support lasting marriages.”

The new study compares data from two large longitudinal studies, the Adolescents and Adults with Autism Study, directed by Marsha Mailick Seltzer, a UW-Madison professor of social work and director of the Waisman Center, and MIDUS, directed by UW-Madison psychology professor Carol Ryff. Both studies are funded by the U.S. National Institutes of Health.