Shark Tank star Kevin O’Leary warns couples never to combine their finances, no matter how in love they are.
He warned that in the event of a split or divorce, it can be very difficult to untangle joint accounts and people risk being left with no credit history.
“What I tell everyone in a relationship is, have your own bank account, your own credit card. Never merge your finances,” the investor said in an interview with Fox News on his Instagram page.
“Many marriages fail not because of infidelity, but because of financial stress,” he added.
The businessman, whose net worth is estimated at around $400 million, urged Americans not to let their emotions get in the way of making wise financial decisions.
In the event of a breakup or divorce, it can be very difficult to untangle joint accounts and people run the risk of being left with no credit history
O’Leary stressed the importance of having one’s own “identity” and financial track record, especially in the credit-oriented US economy.
‘If you are reunited with your partner after a divorce, you are no longer a nobody in our system.
You must have your own credit history.
“I don’t care how much in love you are, just keep your story to yourself.”
There are an estimated 26 million adults in the U.S. who are “credit invisible,” meaning they have no credit history or score.
Credit reports and credit scores play a vital role in the lives of consumers in America.
The one in 10 Americans who are “credit invisible” may still be able to make purchases with cash or a debit card, but they have a hard time getting a credit card, renting an apartment, buying a car or getting a mortgage on a home.
There are steps people can take to become “credit visible,” such as taking out a credit builder loan or becoming an authorized user on someone else’s existing credit card account. However, these methods are not without risks and limitations.
O’Leary stressed the importance of having one’s own “identity” and financial track record, especially in the credit-oriented US economy
O’Leary also made similar comments during an interview with Fox Business in March, Company Insider reported.
“If you don’t have your own financial identity, you’re in the wilderness of America,” he said.
“You need a credit rating, a financial identity, a bank account and investment accounts, purely for your own survival.”
He added that when couples tell him they’ve merged their accounts, he tells them it’s a “crazy” decision.
O’Leary said he bans account sharing within his own family and forces people to sign prenuptial and cohabitation agreements.
“I would like to see my partners financially investigated because I am realistic and I work in the real world,” he said.