Luckily, there are some options to help your conversation go smoothly. While there is no right or wrong answer for newlyweds to split and share their finances, combining finances after marriage is a huge discussion. The sooner you have the "shared finances" talk - assuming it’s constructive and productive - the better both you and your spouse will feel, which will prevent future money arguments. Some marriages opt to only share what's important, such as joint investments, credit cards, and bank accounts – other couples feel more comfortable keeping everything in one account. Marriage and finances are sensitive topics. However, does that mean you have to combine bank accounts and share everything? How should married couples split finances? What Does Combining Finances Mean?Īs a married couple, your spouse's debt, loans, and finances that they accrue during marriage become yours, and maybe even some they brought in, depending on your circumstances and state law. So, the rest of this post covers how to manage finances in a marriage. While you may be wondering how married couples split finances, unless there’s preexisting trauma, often the best and easiest way for most couples is through shared finances of some sort. Since money is one of the biggest causes of stress in a relationship, it is crucial to have open and honest communication with your husband or wife about finances and what that looks like for your marriage. Financial planning and talking about money are musts. Now's the time to decide whether you will be married with separate finances or you're combining finances after marriage. After all, your personal finance may now become you and your spouse's finances. University of Arkansas Research and Extension: The University of Arkansas Department of Agriculture offers a full set of personal finance management resources, including a “Financial Smart Start” series for new couples.So, you just got married, and the next important step after marriage is newlywed budgeting.It also offers financial planning tools and calculators to help you start building a budget. National Foundation for Credit Counseling: If you have significant debt and are looking for a plan to pay it off, this nonprofit provides much-needed counseling.Powercat Financial Counseling: Kansas State University created this marriage and money guide to help couples walk through the process of combining finances and building a strong financial foundation.government promotes its financial education initiative with downloadable templates and tools to teach Americans to spend, earn, protect, borrow and save responsibly. National Resource Center for Healthy Marriage and Families: This government-managed site includes a complete section on financial management with a library of tips and strategies, as well as a free virtual training course.While every situation is unique, research and training courses from the government, universities and nonprofit organizations will help you find the right money management plan for your relationship. Having good credit provides advantages, so it's best to keep that in mind when combining accounts.Īs you begin your life together, there are resources available to guide you through your financial journey. If you have a credit card in good standing over a long period of time, it may be beneficial to keep it open and use it periodically. "How will we combine physical assets? If there are duplicates, can we sell them to pay down debt?"Ī note on closing accounts: closing a checking account does not affect your credit score but closing a credit card may."Will we file our taxes separately or jointly?"."Is there a benefit to primarily using one credit card? Which credit card is right for us?"."Should we keep a personal checking account for hobby spending?"."Whose bank should we use for a joint checking account, or should we start fresh with a new bank?".There are a few things to ask as you combine finances: You can use this account to set up automatic payments for rent, utilities and other monthly bills. Many couples may choose to combine everything but divide responsibilities: one managing day-to-day bills while the other plans long-term expenses.įor simplicity, it’s a good idea to have at least one joint checking account when paying joint monthly expenses. If you combine everything, there is no ‘mine’ or ‘yours,’ only ‘ours.’ It can be easier to share finances in marriage this way, when everything is shared and in the open for both partners to view. For some couples, they combine everything while others take a hybrid approach. How couples combine finances is very personal.
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