Options for Merging Finances after Marriage

There’s is often the debate on whether couples should manage their finances with a joint account or continue to operate separate accounts.

Which of them do you or would you want to use?

So I think, success with whichever way you go about it largely depends on financial circumstance and spending styles of the couple.

To decide on the appropriate structure for managing your money in marriage would want to consider things like existence of significant assets prior to marriage, existence of prior debts, the existence of prior obligations (eg. child support or alimony) as well as income equality/disparity between the couples among other idiosyncrasies.

Here we share popular methods couple use:

Keep your money in separate accounts – Some couples find that maintaining separate accounts works for them. This has the disadvantage that things may not be well coordinated and not optimal. But this can be managed by having regular communications especially on big ticket purchases, having an arrangement for splitting the bills.

Combine all your money with joint account – Some couples feel they should merge all aspects of their life including their finances. With this system, everything flows in and out of a single purse. This allows for a centralised and coordinated management of the household’s money.

Personal account and joint accounts – Some couples opt to use a joint account to manage household bills and savings goals while maintaining individual accounts for their expenses. This I think is the most pragmatic, as it combines the centralised management of household finances with the freedom for partners to spend some money with ‘no questions asked’

Though, you shouldn’t start s marriage planning for the worst, it’s important to note there are legal considerations when combining with a joint account and you may want to seek legal advice on this.

Whichever way you choose to manage your finances, there is often one person who tends to handle the money stuff. It is very important for couples to ensure that they have regular conversations regarding what is going on with their money, what they own/owe and where it is.

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