Study Reveals Link Between Engagement Ring Costs and Divorce Rates

A recent study has established a surprising correlation between the cost of engagement rings and the longevity of marriages. Conducted by economic professors Andrew M. Francis and Hugo M. Mialon at Emory University in Atlanta, Georgia, the research analyzed data from approximately 3,000 individuals who are either married or have been married. The findings suggest that couples who invest significantly in their engagement rings might face a higher likelihood of divorce.

The study revealed that couples spending over $20,000 on engagement rings are about 3.5 times more likely to divorce than those who opt for rings priced between $5,000 and $10,000. Furthermore, couples spending between $2,000 and $4,000 on rings are 1.5 times more likely to separate compared to those who spent between $500 and $2,000. While the study primarily reflects trends in the United States, it raises important questions about spending habits and their impact on marital success.

The Cultural Pressure of Engagement Ring Costs

The question of how much one should spend on an engagement ring has been a topic of discussion for decades. In the 1930s, the diamond industry giant, De Beers, popularized the idea that men should spend three months’ salary on an engagement ring. This notion has persisted, leading to average prices for engagement rings in various countries. In Ireland, for instance, the average cost of an engagement ring is reported to be around €3,600, with some estimates suggesting costs could reach as high as €6,000.

While a beautiful engagement ring can symbolize love and commitment, the financial strain it may impose is a significant concern. Many couples find themselves in precarious financial situations, particularly if they stretch their budgets or incur debt to purchase an extravagant ring. Financial advisor Liam Croke, managing director of Harmonics Financial Ltd, emphasizes the importance of starting a marriage with a solid financial foundation.

Croke explains that indulging in excessive spending on engagement rings can lead to financial pressure that may strain a marriage. He highlights that conflicts over money have consistently been cited as a leading cause of divorce over the past two decades. Other common issues such as communication breakdowns and external familial pressures also play a role, but financial disagreements take precedence.

Lessons from Financial Conversations

Croke shares a poignant story of a couple he advised earlier this year. The husband expressed feelings of financial insecurity stemming from a lack of savings and growing debts, including a term loan of €500 per month and an outstanding credit card balance of €8,000 held by his wife. This couple’s financial challenges were compounded by the husband’s decision to purchase a costly engagement ring, using savings and additional loans without considering the long-term implications.

Croke emphasizes that the couple’s financial woes could have been mitigated had they engaged in open discussions about their financial situations prior to marriage. He urges couples to candidly address key questions, including existing debts, savings, and budgeting strategies. Understanding each partner’s financial background can prevent misunderstandings that may arise after marriage.

Research indicates that a significant number of individuals hide financial details from their partners. For instance, a survey revealed that 32% of women admitted to concealing purchases from their partners, while 17% of men did the same. The importance of transparency cannot be overstated, as financial secrets often lead to mistrust, further complicating relationship dynamics.

Croke’s key takeaway is to avoid unnecessary debt, particularly related to engagement rings, and to resist societal pressures that dictate spending. Couples should consider allocating funds towards more significant investments, such as a home deposit, emergency savings, or retirement plans, rather than indulging in lavish purchases that may lead to financial distress.

Ultimately, the study from Emory University underscores the need for couples to approach their financial commitments with caution. By prioritizing open communication about finances and making informed purchasing decisions, couples can foster healthier relationships that stand the test of time.