This study tested various models of the effects of positive and negative exchanges on positive and negative affect using structural equation modeling. Based on a probability sample of middle-aged and older adults, the relationships between social exchanges and psychological well-being were examined both within the total sample and within subgroups of individuals who had experienced few vs many life events. Within the general population, the Domain Specific Model resulted in the best fit. That is, positive exchanges were associated with positive affect, and negative exchanges were associated with negative affect. However, among the subgroup that had experienced more life events, there was a significantly stronger relationship between negative exchanges and negative affect. These findings suggest that, to understand the effects of social exchanges, it is important to consider the context of life events.