ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

Shark Tank investor Kevin O'Leary warns couples not to merge finances: "I don't care how in love you are"

Mr Wonderful also forbids shared financial practice in his own family.
PUBLISHED SEP 21, 2024
(Photo by Roy Rochlin/Getty Images)
(Photo by Roy Rochlin/Getty Images)

Entrepreneur and “Shark Tank” star investor Kevin O'Leary has issued a warning for couples against completely merging their finances. In a Fox interview clip shared on Instagram, O’Leary says he “forbids” couples from giving up their financial identity as it could leave them 'high and dry' if they decide to split in the future. While it seems to be compelling advice from Mr Wonderful, research says otherwise.

Kevin O'Leary participates in a panel discussion | Getty Images | Photo by Michael Kovac
Kevin O'Leary participates in a panel discussion | Getty Images | Photo by Michael Kovac

O'Leary says when two people get into a relationship, they're often tempted to combine their finances as it signals that they're both committed. However, if they break up in the future joint accounts can be a "knotty mess" to untangle and might leave them 'high and dry' in a credit-driven U.S. economy.

"After you get divorced, if you have been merged in with your significant other, you're a nobody in our system," he says in the Fox News clip, talking about GenZ men and their finances. He goes on to advise people that they need to have their own credit track record and not let emotions get in the way. 

"I don't care how in love you are; you keep your account to yourself," he says. 


 
 
 
 
 
View this post on Instagram
 
 
 
 
 
 
 
 
 
 
 

A post shared by Kevin O'Leary (@kevinolearytv)


 

O'Leary offered similar advice during a Fox Business interview in March. In an interview with Stuart Varney, he said "50% of marriages" result in divorce over financial stress in the first five years of marriage. Even if couples are in a sure-shot long-term situation, anything such as death could happen. Thus, it is important for everyone to maintain their own financial identity.



 

He went on to share that he forbids the shared financial practice in his own family as well. He added that he "forces" prenuptial and cohabitation agreements and makes sure that due diligence is performed on significant others as he is "a realist" in the "real world". 

A 2023 study published in the Journal of Consumer Research found that merging finances in a joint bank account does impact the quality of relationships for engaged or newlywed couples but for the better. The study revealed that couples who merge their finances experience a protective effect that saves them from a decline in relationship quality. 



 

In the two-year experiment, engaged or newlywed couples were divided into three groups. The first merged their finances, the second kept separate accounts and the third had no intervention. It was observed that couples from the second and third groups experienced the usual decline in relationship quality. 

Whereas, the first group was virtually shielded from the decline due to improved financial harmony, which resulted in less conflict and higher satisfaction with money. Thus, the study suggested that joint accounts can help couples maintain transparency, understand each other's financial priorities, and promote a sense of togetherness. 



 

However, closing a joint account in the event of a breakup or divorce is messy. In a Forbes report, Wendy Althen, founder and owner of Althen Financial Solutions, also echoed O'Leary's observation that money is the "number one" reason for divorce. She added that conflict can result in a partner emptying the account, or using it as a bargaining chip.

MORE ON MARKET REALIST
The Home Depot staffer requests the individual's tax-exempt number, which the individual declines.
6 hours ago
She also called out Walmart after describing how she was feeling about wearing unwashed clothes.
16 hours ago
Like any struggling young actor in the 80s, White was looking for any opportunity to appear on TV.
17 hours ago
The man bought three tickets but left the last one at the counter and the man on the counter just checked it out of curiosity.
1 day ago
Perry's comments about splitting bills and the women being the breadwinner did not go down well with many.
2 days ago
The woman finally asked for help from a worker at Walmart and found out more alarming details.
2 days ago
Walmart worker confronts the return scammer, sparking a viral debate on ethical consumer behavior.
3 days ago
She was only offered $6,600 as a “goodwill gesture” for being the winner. 
4 days ago
The man from New Jersey bagged the reward when he was in the studio just as a member of the audience.
4 days ago
Viewers were left scrambling for an explanation until the glitch was fixed during a re-run later that year.
4 days ago
The person who originally listed the property later explained the logic behind the design.
4 days ago
Later, she finally found a way to get rid of the Tahoe after three years of paying $1,400 a month.
5 days ago
A study highlighted the alarming number of bacteria found on a large package from Amazon.
5 days ago
So far the recall hasn't been directly linked to the salmonella outbreak caused by eggs from another brand.
5 days ago
The employer was overwhelmed after learning about the struggles of his employees.
5 days ago
The video gained so much popularity that some users even advised Amazon that it could be their next commercial.
6 days ago
The transit worker and her husband still haven't decided what they intend to do with the winnings.
6 days ago
Vanna White herself feels that Maggie Sajak has her father's charm and can be a fitting replacement for her.
6 days ago
Markle had even shared that she wasn't fond of her stint as the "Briefcase Girl" on the show.
7 days ago
The photographer also charged extra to edit the pictures although he too had missed the flaw.
Dec 1, 2024