iscover 
According to new research from financial comparison site Finder, 2.5 million Australians have either dumped or been dumped by a romantic partner due to their financial situation.
The research found that 5 per cent of Australians have been dumped for having low income or savings, 4 per cent due to their level of debt and 2 per cent because of their poor understanding of personal finances.
Four per cent of Australians said they have been the one who let their romantic partner go.
Finder’s research also found that younger Australians are much more likely to have been affected, with 24 per cent of Gen Z and 21 per cent of Millennials admitting they’ve experienced a break-up triggered by financial reasons, compared to 10 per cent of Gen X and 3 per cent of Baby Boomers.
Men (15 per cent) were twice as likely as women (7 per cent) to have been broken up with for financial reasons. Women (4 per cent) were slightly more likely than men (3 per cent) to say they’d dumped someone else for this reason.
Similarly, research from AMP Bank GO found that while more than two in five couples are choosing to combine their money, nearly one in 14 say they worry that their partner may be hiding spending.
Rebecca Pike, money expert at Finder, said younger generations are entering a tougher economic landscape than their parents and urged couples to talk about money early on.
“When you’re struggling to pay for groceries and rent, a partner with significant debt or ‘head in the sand’ money habits can especially feel like a liability rather than a partner.
“You don’t need to share bank statements on a first date, but you do need to know you’re on the same page before moving forward.
“Transparency is so important – be honest about where you are today so you can build a stable future together.”
Transparency key in lending conversations
Daniel Kaminsky, broker at Loans4Homes, told Broker Daily that misaligned or unclear financial arrangements between partners can pose challenges when seeking to secure a mortgage, particularly once the details are reviewed.
“While we do ask clients to outline their monthly expenses at the start, I’d say around 70 per cent of people don’t actually know the true figure – they guesstimate.
“Once we receive the statements, it can sometimes paint a very different picture to what was initially disclosed.
“Where this becomes more sensitive is in joint applications. I’ve had situations where I’ve asked about specific transactions during a review and seen visible surprise from the other partner in the room. Occasionally, those conversations have become quite heated.
“When finances are managed separately but a mortgage is applied for jointly, the bank views the couple as one financial unit. Any hidden, misunderstood, or underestimated spending can affect both parties.”
As a broker, Kaminsky said the best way to approach the issue is from an objective and non-judgemental perspective.
“I make it clear that it’s not about ‘you’re spending too much’ it’s about how the bank will interpret spending patterns and financial behaviour,” Kaminsky said.
“I compare the figures they initially provide with what I see in their bank statements, keeping the conversation casual but transparent. Typically, expenses submitted to the bank need to be forecasted for post-settlement figures, unless it’s a refinance, where expenses are usually consistent.”
He added: “If a challenging issue arises, or the conversation gets tense, I always refocus clients on the shared goal – whether it’s buying a property, a new car, or reaching another financial milestone. I remind them that we are working together as a team to achieve the same outcome.”
[Related: 1 in 4 mortgage holders unprepared for rate hikes]