Second annual 'Love and Money' survey sheds insights on financial behaviours of Canadians in relationships and post-divorce
More than 1,700 people participated in TD's second annual Love and Money poll, which looked at the financial behaviours and attitudes of Canadians in marriage, in a relationship, and after divorce.
Surprisingly, the 2021 survey found that divorced couples are feeling hopeful about their finances. In fact, 74% of Canadians who have been divorced say their financial situation is the same or better than when they were married.
Melissa Leong, Personal Finance Author, Speaker and Television Personality, said, "Going through a divorce or relationship change can be emotionally and financially overwhelming—often requiring a readjustment of financial goals. But a divorce or relationship change can also provide an opportunity for the affected individuals to take stock of their financial futures, including a chance to level-up their money management knowledge, and maybe even seek out advice from a financial professional."
According to the TD Love and Money survey, 52% of the participants said they developed a new financial skill after their divorce, such as tracking their spending (28%), paying bills (24%), and saving for retirement (23%). After divorce, more than half of those polled (57%) say they are spending less and almost half (45%) believe they are financially better off.
The results of the survey also highlight the disadvantage of not discussing finances in relationships. Only 29% of divorced couples asked said they talked about money with their former partner on a weekly basis, compared to 50% of married couples polled who said they do so weekly.
Millennials have their own way of thinking about love and money, the survey indicates, as they are more likely to keep their finances separate. With 49% of respondents reporting they have no shared accounts or credit cards (63%), millennials are more likely than other demographics to keep their money separate from their relationships.
The poll findings suggest that millennials are less tolerant of "red flag" financial behavior and that they would leave their partner if they've never volunteered to pay anything for anything at all (86%), they kept their finances a secret from others (81%), and they didn't seek financial assistance from a financial expert (77%).
The survey also touches on those who are in a relationship, with the findings revealing that committed couples face their own financial issues. In the 2020 report, more than a quarter (28%) of couples kept their finances a secret from their partners, up from 8% in the previous year; 64% of individuals who kept a secret don't intend to tell their partner about it. According to the report, the most common secret is an undisclosed purchase (42%), followed by a secret bank account (29%).
In line with the larger need for financial advice reflected in the 2020 Love and Money poll, surveyed couples this year report that they need help the most when it comes to how to invest (20%), pay off debt (12%), and plan for retirement (12%). Millennials, on the other hand, are more inclined to seek home-buying advice (19% vs. 9% of others surveyed).
