You could miss out on payments you are due
Families have been directed towards a crucial principle regarding managing their finances. Martin Lewis recently discussed the vital consideration when handling household finances.
The consumer champion told his BBC podcast audience that couples could face difficulties if only one partner manages the day-to-day finances. He encouraged people to consider the ‘three Ds’ representing potential problems: death, divorce and dementia.
Mr Lewis said: “The problem with one person doing it is, if they are not communicating with the other partner, if there isn’t a good financial factsheet list of details of who every provider is and why the decisions were taken and made, then if one of the three Ds were to hit the person who is in charge of the finances, it can leave the other partner in the lurch terribly.”
Given this warning, he encouraged people to ensure both partners grasp the fundamentals of household income and expenditure. Addressing a wife who mentioned she manages all the household bills, Mr Lewis said: “It’s fine for you to be the lead financer in your family, as long as your husband who you say isn’t good with money, understands the decisions you’re making and you have enough details and explanation, that in the event something were to happen to you, he would be able to take over relatively seamlessly.”
Significant risks
Now, relationship specialists at dating platform eharmony have also said this is a good principle to follow. Dr Lalitaa Suglani, a relationship expert working with the organisation, explained that this can pose particular challenges for older couples.
She said: “I’ve seen this come up before, and the risks can be quite significant when only one partner is fully across the household finances. This becomes especially important for older couples, particularly around retirement planning and pensions.
“If the partner who manages the finances becomes unwell or passes away, the other can be left not only dealing with emotional distress but also suddenly having to navigate complex financial systems they may not fully understand.”
She warned that without a proper understanding of your household’s pensions, investments and income arrangements, you risk missing out on entitlements and even becoming more susceptible to scams.
Ms Suglani said this concern extends beyond older couples. The specialist said: “It’s also worth noting that this isn’t limited to older couples, as unexpected illness or death can happen at any age.
“Over time, this kind of imbalance can also create a dynamic where one partner becomes overly dependent on the other financially, which may reduce confidence and limit their ability to make informed decisions later in life.”
Ms Suglani also said: “Being upfront about things like debt, spending habits, and any financial pressures early on doesn’t need to feel heavy, but it does help avoid misunderstandings later. It also means both partners can make informed, confident decisions together and feel more secure in the relationship.”
