Financial Integration and Relationship Transitions of Young Adult Cohabiters

Abstract

Despite increasing rates of pre-marital cohabi-tation, the majority of research on household financialpractices in the United States has focused on marriedcouples. This study explored way s young adult cohabiters(N = 691) financially combined their lives and the asso-ciations with subsequent relationship outcomes. Resul tsindicated cohabiters were intertwining credit histories andbank accounts, and acquiring assets such as purchasinghomes together. Sharing a mortgage was associated with anincreased likelihood of marriage, whereas joint credit cardaccounts increased the odds of dissolution. Cohabiters withan intent to marry were much more likely to start inte-grating their finances prior to marriage. This study shedslight on the heterogeneous ways that a recent cohort ofyoung adult couples manages their finances and navigatesrelationships.