Just Married: What to do with your finances?

by Chaz Gaines

Congratulations on tying the knot!

Even as you are enjoying honeymoon bliss, you and your spouse may be swimming in a sea of checks right about now. Assuming that’s the case, you might find yourselves scratching your head shortly after the wedding bells ring as you and your significant other wonder what to do with your newfound riches.

Do you say “I do” to merging your savings and checking accounts or do you keep it all separate?

Years ago, it might have seemed like a no-brainer for newlyweds to merge their accounts. But today, it’s much more likely that both spouses have their own sources of income prior to getting married.

Either way, the answer varies on a case-by-case basis. It’s important to keep in mind that if you decide not to merge accounts, that doesn’t necessarily mean your relationship lacks trust. On the other hand, opening joint accounts can be a smart move for strengthening your financial future together.

When it comes to your finances, you’ve got three options:

• Completely merged accounts. There is certainly a level of comfort that comes with combining your savings and checking accounts. Both you and your spouse will know the current state of your finances, and every bill—from utilities to mortgages to groceries—can be paid from the same account. It’s important to keep in mind, though, that if one of you is carrying a lot of debt, the other will have to now support that financial load, as well.
• Partially merged accounts. Is keeping some of your finances separate and merging others the best of both worlds? Couples can consider sharing some of their money while keeping personal accounts. That way, a husband can’t get mad at his wife for buying another pair of shoes or vice versa when her husband goes all in during gambling night; , so long as those expenses come out of separate accounts. But you still have to consider how you are going to fund that shared account. For example, will the higher earner contribute more?
• Completely separate accounts. For couples who have both achieved financial independence prior to marriage, keeping completely separate accounts might make the most sense, even if those from the outside looking in think it’s a bad idea. These days we have an endless amount of accounts, usernames and passwords to remember, so who wants to open up another bank account or sign up for another credit card when they don’t have to? But keeping finances completely separate isn’t without its problems, either. You have to consider how certain bills are going to be split, for example.

Money is an important aspect of life because we need it to survive, but the level of its importance varies from person to person. At the end of the day, it is critical you remember that no matter which option you choose, you need to talk openly about your finances. The more conversation that occurs, the less likely you will be to fight over money.

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