Financial Management in Canadian Domestic Relationship: A Comparative Study of Married and Cohabiting Couples

• In Event: 50261 - Family Section Roundtables
  In Refereed Roundtable (60 minute): Table 2: Marriage, Cohabitation & Divorce

Abstract

This study investigates financial management practices among married and cohabiting couples in Canada. The overarching research question guiding this study is: How do financial management strategies differ between these two domestic partnerships? The primary objectives are: (i) to examine the allocation of financial responsibilities within this relationship, (ii) to assess the influence of marital status on financial practices, and (iii) to investigate the impact of employment status on these dynamics. Utilizing data from the 2017 Canada General Social Survey – a nationally representative sample of 20,000 respondents – this study employs descriptive and bivariate analyses technique to investigate patterns in financial management among married and cohabiting couples in Canada.
The findings revealed that married couples predominantly adopted pooled financial management systems, with 95.4% utilizing joint accounts, while cohabiting couples were more likely to maintain separate accounts (41.5%). Additionally, both groups commonly reported sharing financial responsibilities, yet married couples exhibited a stronger tendency to do so equally. Employment status also emerged as a significant factor, with employed individuals less likely to divide financial responsibilities based on income.
The implications of these findings are substantial for policy and practice, suggesting the need for tailored financial literacy programs that recognize the distinct financial behaviors of married and cohabiting couples. Furthermore, policies that support financial integration for cohabiting partners, such as joint taxation benefits or cohabitation agreements, could enhance financial security. This study contributes to the understanding of how relationship dynamics influence financial decision-making in contemporary Canada. These measures hold critical importance from public policy perspective for fostering equitable financial outcomes within Canada’s evolving socio-familial landscape.

Authors

• Yan Ning Cheung, The University of British Columbia

• Tsz Chung NGAI, University of British Columbia

• Wai Man Chong, University of British Columbia

• Hiu Wing Kam, University of British Columbia