Study Reveals Link Between Engagement Ring Costs and Divorce Rates

A recent study conducted by economists Andrew M. Francis and Hugo M. Mialon at Emory University has uncovered a surprising correlation between the cost of engagement rings and the likelihood of divorce. Analyzing data from 3,000 married or previously married couples, the researchers sought to evaluate the relationship between wedding spending and marriage duration. Their findings suggest that couples who invest heavily in engagement rings may face greater challenges in sustaining their marriages.

The study revealed that couples spending over $20,000 on engagement rings are approximately 3.5 times more likely to divorce than those whose rings fall in the $5,000 to $10,000 range. Additionally, couples who allocate between $2,000 and $4,000 for an engagement ring are 1.5 times more likely to separate compared to those spending between $500 and $2,000. This research primarily reflects the financial habits of couples in the United States, with no similar large-scale studies reported in other countries, including Ireland.

The question of how much to spend on an engagement ring often sparks debate. Traditionally, the diamond industry, led by De Beers, suggested that men should spend the equivalent of three months’ salary on an engagement ring. Current estimates indicate that the average price of an engagement ring in Ireland is around €3,600, with some suggesting it could reach as high as €6,000. While an engagement ring should indeed hold sentimental value, overspending or incurring debt for this purchase can lead to financial strain, which often translates into marital stress.

The financial implications of lavish spending on engagement rings are underscored by personal experiences. Liam Croke, Managing Director of Harmonics Financial Ltd, shares insights from a couple who faced severe financial difficulties shortly after their marriage. The husband, overwhelmed by debt and a lack of savings, revealed that his financial woes began with the extravagant engagement ring he purchased, believing it would solidify their love. He admitted to having spent all his savings and borrowing money to buy the ring, disregarding the long-term financial consequences.

This couple’s situation highlights a broader trend. According to various studies, conflicts over money remain the leading cause of marital discord. Other common issues contributing to relationship breakdowns include communication problems and differences in sexual intimacy.

Research indicates that many individuals conceal financial information from their partners. For instance, a survey found that 32% of women admitted to hiding purchases from their partners, compared to 17% of men. Additionally, 71% of high earners (those making over €70,000) have money secrets, with 13% concealing debt. Such financial dishonesty can erode trust and exacerbate tensions in a relationship.

As Croke advises, couples should engage in open discussions about their financial situations before marrying. This includes candid conversations about debt, savings, and budgeting. Key questions to consider include: How much debt do you have? What is your savings goal? How will we manage our expenses? Will we maintain separate accounts or establish a joint budget? Conducting a trial run of financial management prior to marriage can provide both partners with a clearer understanding of their financial responsibilities.

Moreover, avoiding unnecessary debt is crucial for financial health, both before and after marriage. Couples should resist societal pressures to spend excessively on engagement rings. Instead, they should prioritize financial stability, which can facilitate a stronger foundation for their marriage. Funds allocated for extravagant rings could instead contribute to a larger deposit on a home, build emergency savings, or support future family expenses.

In summary, the findings from the Emory University study serve as a reminder that fostering a successful marriage often requires financial prudence. Couples are encouraged to prioritize open communication about finances to mitigate potential conflicts and create a stable future together.