Money in Relationships: Who Is the Most Vulnerable?

This Month’s Scientific Question: Demystifying complex topics with simple, effective answers.

Unique Trends in Quebec

When it comes to relationships, Quebec is a unique case in Canada and around the world: we’re the global leaders in common-law relationships! In some regions, more than 70% of couples with minor children are unmarried. However, this status is not without consequences in the event of a separation. That’s when the financial inequalities, accumulated over the years of living together, come to the surface.

So, who is the most vulnerable in a couple when it comes to money?

For professor and sociologist Hélène Belleau, a specialist in issues surrounding couples and inequality at the INRS, the conclusion is clear: mothers are the most vulnerable. Compared to fathers, they are more likely to reduce their hours of paid work for the sake of the family and therefore have less money than fathers to set aside for savings. Depending on how expenses are divided during a relationship, one of the two partners may have saved more.

A Common Pattern

Among same-sex couples, the disparities are less pronounced among female couples. These couples are more likely to share the family burden equally, both in terms of paid and unpaid work. Conversely, among same-sex male couples, we generally see the same disparities as in heterosexual couples.

Savings: For Better or for Worse

In most couples, savings are managed separately, sometimes even when partners say they pool their money for day-to-day expenses. Savings are truly an overlooked aspect of married life. Among heterosexual couples, mothers—who have taken maternity leave and experienced subsequent pay cuts—contribute less to savings than fathers. Added to this are separations, which occur on average after 15 years of living together and which few people anticipate.

“Savings are truly an overlooked aspect of married life.”

A Latent Inequality

However, it is estimated that $5,000 saved will be worth $40,000 after thirty-five years… Inequalities can therefore resurface over the very long term. In the event of a separation, pension funds and RRSPs are not divided between common-law partners. Since this status is the most common in Quebec among those under 50, the number of people vulnerable to separation is all the greater.

Solutions to Implement

According to researcher Hélène Belleau, one concrete solution lies in pooling savings as if they were a shared expense. In this regard, the legal framework established in certain provinces in western Canada could also serve as a positive inspiration for Quebec to reduce these inequalities among common-law partners.