Shark Tank investor and O'Leary Ventures chairman, Kevin O'Leary advised couples to maintain separate finances during his September 11, 2024, Fox Business interview. Famously known as 'Mr. Wonderful' on the ABC show currently in its 16th season, warned couples against merging finances to create "a nobody in our system" after divorce.
On March 18, 2024, in a Fox Business interview, the Shark Tank investor reinforced this stance with data showing that 50% of marriages end due to financial stress within five years. O'Leary stressed the critical need for individual financial standing in the US credit system. He told Fox Business host Stuart Varney that separate accounts, credit ratings, and investment portfolios are essential for financial survival.
The investor mandates this practice in his own family, requiring both prenuptial and cohabitation agreements. His guidance aims to protect individuals from financial complications that often arise when relationships face challenges.
Shark Tank star Kevin O'Leary warns couples to keep finances separate
In the September Fox News clip, O'Leary provided specific guidelines about financial separations for couples. He stated that by the second glass of wine on dates, partners should know about each other's debts, financial habits, and potential bankruptcy history. This early transparency, according to O'Leary, creates a strong foundation for future financial stability.
The Shark Tank investor enforces strict financial separation rules within his family circle.
"I force prenups and cohabitation agreements in my family. It's about financial due diligence," O'Leary said during the Fox News segment.
He compared money management to having a baby, stating
"Before you even have your first child, you have a baby. It is called money. If your finances are sound, it smiles at you. If not, it cries."
He also emphasized that couples should have open conversations about money by the third date.
"By the second glass of wine, you should know if your potential partner has debts, poor financial habits, or a history of bankruptcy," he stated.
These early discussions help partners understand each other's financial situations before making serious commitments.
Financial independence risks
O'Leary pointed to the serious consequences of merged finances during relationship changes.
"After you get divorced, if you have been merged in with your significant other, you're a nobody in our system," he explained.
This situation becomes particularly challenging when individuals need to establish new credit lines or make significant purchases.
The investor highlighted specific challenges faced by partners with combined accounts. These include difficulties in loan applications, credit card approvals, and maintaining individual credit scores. O'Leary stressed that maintaining separate accounts helps protect both partners' financial futures, regardless of relationship status changes.
Financial advice
The Shark Tank investor advised keeping investment accounts, ETFs, stocks, and bonds in individual names.
"You do not have to merge that with your significant other. Ever," he emphasized in his social media post shared alongside the Fox News clip.
According to O'Leary, this approach allows each partner to build their credit history and maintain financial autonomy. He went on to explain how separate accounts protect both partners in case of unforeseen circumstances.
For long-term relationships, O'Leary advocated for formal financial agreements. He explained that tools like prenups and cohabitation agreements are essential for protecting both partners.
"I want financial due diligence on significant others because I'm a realist. I deal in the real world," he told Fox Business in March 2024.
The investor's stance comes from his extensive experience in financial markets and observations of relationship dynamics. His advice on Shark Tank Season 16, which airs every Friday on ABC, consistently reflects this philosophy of maintaining clear financial boundaries and protecting individual financial interests.
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Fans can catch Kevin O’Leary in Shark Tank Season 16. The next episode is set to air on December 12, 2024.
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