In the United States, government-issued child support payments only cover 53% of the costs associated with raising a child.
As a result, co-parents must independently manage the remaining 47% of expenses such as medical bills and extracurricular activities, with one parent often paying upfront and seeking reimbursement from the other parent. This process often involves conflicts and arguments between co-parents, who typically communicate through texts, messages, and emails.
jacklyn romanfounder and CEO of a fintech company forwardunderstand this struggle firsthand.
“I saw my parents divorce when I was 14 years old,” Roman said in an interview with PYMNTS. “For them, as for most people, money tends to be the number one cause of arguments between divorced or separated parents, and money tends to be the primary source of arguments between two emotionally charged people. It is often used.”
Rome launched Onward in January 2020, inspired by her personal experience. The platform provides co-parents with a centralized tool to track their children's shared expenses, providing a streamlined solution to the difficult financial conversations and decision-making processes that come with working together. -Parenting.
“idea [is] Reducing stress and tension for divorced parents and their children [with the goal of] “We improve the quality of life for children, reduce stress in the homes they grow up in, and make sure they have everything they need to thrive,” Rome said.
Once parents participate, they can enter their expenses into the platform and categorize them as needed. This includes not only direct expenses related to children (medical expenses and extracurricular activities are the most important categories, according to Onward data), but also household expenses such as mortgages and phone bills.
The app also allows parents to suggest a fair division of each expense based on their individual circumstances and divorce agreement.
Features like receipt uploads and expense notifications streamline processes and ensure transparency and accountability. “We keep track of all the different expenses so if the co-parent ever needs to go back to court.” [at some point]they will have access to all of those records,” Roman explained.
Additionally, the app provides analytics on spending patterns and provides co-parents with insight into how they are allocating resources. Rome said that with a comprehensive view of financial responsibilities, co-parents are in a better position to make informed decisions and work together more effectively for the benefit of their children.
Address diverse relationship use cases
While Onward's primary user base consists of co-parents, Rome noted that the platform's appeal extends beyond this demographic.
For example, unmarried individuals who share childcare responsibilities embrace apps as helping them manage child-related expenses. Additionally, couples experiencing strain in their relationships are using Onward as a pre-emptive tool to streamline their financial arrangements.
Even couples in stable relationships realize the benefits of working together to manage their finances and turn to Onward for help. This growing trend prompted the launch of Tango, another app for couples to jointly manage their finances.
Rome explained the rationale behind the decision to create a separate app rather than extend an existing one: [uncomfortable] If you're divorced or vice versa, check out our features for couples. ”
Adapting to evolving relationship dynamics
Looking to the future, Rome noted the following important changes: relationship dynamics It is thought to play an important role in sharing costs and shaping the couple's financial situation.
For example, people who marry later in life often do so when both parties have established careers and financial independence. She said this trend has led to a preference for keeping finances separate, with nearly 70% of millennial couples choosing to keep at least some aspects of their finances separate. .
“All of this has made the way couples perceive money, analyze their finances, and maintain transparency in their various accounts much more complex,” Roman said. “It's becoming increasingly difficult for couples to consolidate all their financial information in one place, preventing them from making informed decisions about managing their finances.”
Additionally, family structures are evolving, with more couples having children outside of marriage or choosing not to marry. According to Rome, this trend is introducing new dynamics to separation and divorce, highlighting the need for innovative solutions to address the economic challenges associated with these non-traditional family arrangements. There is.
Another challenge is the difficulty some people face in persuading others to participate in using the app. This is often due to one party becoming reluctant to resist just because the idea came from their partner.
One of Onward's priorities this year is to help co-parents navigate this situation.
“We are focused on improving the single user experience to help people with issues such as: [former] Partners don't want you to use the app together to get value. This includes receiving repayments, tracking expenditures, and maintaining records without partner involvement,” Rome said.
