A dual income household sounds like a better option than having a solo breadwinner. When a couple is both earning, this means more financial stability, more options, and a chance to grow, right? A dual income can provide a cushion but how you use the twin earnings is more important to think about. When you look at it from a traditional gender role view, it can put the wife in a very precarious position. Dual incomes aren’t all bad but they can be dangerous for some partners.
The benefits of a dual income household
1. More disposable income
When both partners are earning, the household has more money to spare after paying for utilities and savings. Higher total income gives couples more options for investing and leisure. It also allows a family to invest in child care and other amenities that make life easier.
2. Financial stability
A dual income allows a family to pay for utilities and have income to spare in case of emergencies and for savings. Financial stability means having enough money for luxury, high-end tools and not worrying about money in the event of the loss of one income stream.
3. Career growth
When you have more income, you can explore more opportunities. It’s also easier to establish more options for passive income. It’s also easier for one partner to go back to school or on a sabbatical for career development if the other can withstand the expenses. This increases the chance of one partner getting a promotion and earning even more income.
4. Retirement
A dual income makes retirement easier. A financial cushion makes it easier to invest in retirement savings schemes and earn even more after becoming pensioners.
5. Equity
A dual income can provide more equity for both partners. This means they have individual financial stability in the event of a separation. There are more things to consider with this but a dual income means that it’s easier to separate with what you brought in. It also means you don’t have to rely on alimony or child support for future survival. But sometimes having a dual income doesn’t always mean that your contribution will be recognised in the event of a divorce.
The downsides of a dual income
When both partners work, they will likely have less time to spend together with their families. There is also the friction that can arise from a difference of opinions. If one partner would rather invest in something else, this can lead to fights. But most importantly, the roles one partner plays can lead to loss of property in a separation.
How a partner can end up with nothing
There is the belief that in a dual income household, men should still be the “providers”. This then means that a wife should contribute at a smaller scale. If the man buys the land, house, or cars then the wife pays for utilities, bills, groceries, and child care. These gender-assigned roles within a dual income can create a precarious position in the event of a divorce. Even after living in a home that your husband bought, when you separate, you’re not likely to get half the value of the house or get to keep the car he bought.
This is because he can track his expenditure while you’re left with arbitrary contributions to display. In most instances, wives earn less than husbands. Therefore, what they can contribute is less than their husbands. This is why he ends up buying the land or house while she pays for childcare or groceries because that’s what she can equitably pay for.
How can partners protect their contribution?
One way to prevent property loss in separation is to ensure that properties and assets that are bought within the marriage are registered under both names. If you were both contributing to a pension scheme, have an agreement in place that allows a fair pension-share agreement. Have a prenuptial agreement to delineate who gets what in the event of a divorce.
Keeping track of recurrent expenditures can also help when budgeting and determining contributions. Having an honest discussion with your partner about what contributions should be made from a dual income is the best way to have an amicable marriage and separation. Labelling men as “providers” in such a household is also reductive because it propels the belief that women’s roles are to be subservient. It also doesn’t take into account domestic labour and childcare which often go unrecognised and unpaid.
As a woman, you need to have a discussion about having children and how this will affect your career and financial earnings. Women give up a lot in terms of their careers when they have children and become primary caregivers. Why Are Working Women Are Punished For Having Children – The Motherhood Penalty And What It Means For Women’s Careers
You need to have a discussion about this and whether your partner will make a financial contribution towards making sure you don’t lose out. Check out Woman Asks For $50-100k Compensation For Pregnancy And Maternity Leave From Her Partner. Would You Do It?
Here are the different ways as a woman or a spouse you can ensure you document your financial contributions just in case you end up divorced.
Track Income and Expenses:
- Bank Statements: Keep copies of monthly bank statements (physical or digital) showing your deposits (salary, investments) and contributions to household expenses.
- Spreadsheets: Maintain a spreadsheet that tracks your income, contributions to marital property and separate expenses (gifts, personal items).
- Bill Statements: Keep copies of bills with your name on them that you pay for the household (utilities, phone, etc.).
- Mischellous household expenses. You may be paying the help in cash. Make sure you have a document where they sign for the money they receive. If you can pay them with mobile money just to make sure you have the documentation that you have paid them.
Document Asset Ownership:
- Receipts: Keep receipts for any major purchases you make with your own money (furniture, car, etc.).
- Investment Statements: Maintain copies of investment statements showing your separate accounts and contributions.
- Inheritance Documentation: If you inherit money or property, keep copies of legal documents proving separate ownership.
Consider Separate Accounts:
- Joint Account with Clear Agreements: If using a joint account, have a written agreement outlining how much each spouse contributes and how funds are used. Relationships: To Joint Account Or Not To Joint Account That Is The Question?
- Separate Account for Personal Funds: Maintain a separate account for your own salary and use it for personal expenses or saving for future goals.
Pre-nuptial Agreement:
- Discuss with a Lawyer: Consider a pre-nuptial agreement outlining how assets and debts will be divided in case of divorce. This can help protect separate property and ensure fairness. Marriage: The Importance Of A Prenuptial Agreement And The Things To Include
General Tips:
- Secure Documentation: Store financial documents securely, both physically and digitally (cloud storage with password protection).
- Regular Review: Periodically review your documentation and update it as needed.
- Open Communication: Maintain open communication with your spouse about finances. Discuss financial goals and responsibilities openly. Financial Discussions Couples Should Have Before They Get Married
Ultimately, a couple determines what works best for them. A couple needs to be responsible enough to ensure that one partner doesn’t end up with nothing in a separation. Living in a house for decades and having no right to it in a divorce because your utilities and grocery contributions don’t count is bad form. Having formal recognition of ownership, even though your contribution is “lower” means you will still have assets after separation.
Don’t ever think that divorce can’t happen to you. It may not but just in case it is better to be protected and know that you will get your fair share when you get divorced.
Check out:
5 Signs You Are Experiencing Financial Abuse In Your Relationship
Relationships: 5 Most Common Marriage Problems Couples Deal With
Relationships: The Fair Play Method Of Dividing Housework And Childcare
How Men Can Help Out With Household Chores
Relationships: Things Happy Couples Do For Each Other Without Being Asked
Couples And Money: How To Navigate The Minefield Of Marital Finances
Opinion: There Is Nothing Equal About Going 50-50 In A Relationship
Marriage: The Financial Burden Of Divorce Part 1
Gender Based Pay Disparity: A Discriminatory and Sexist Practice That Should Be Stopped
