Many couples don’t think much about throwing their money in the pot when they marry. In sickness and in death, for richer and for poorer means that what’s mine is yours and yours is mine and what’s ours is ours.
Yet the contours of modern life – many more couples are marrying later in life when they have established careers and each spouse bringing more money to the marriage – means that throwing everything in the pot and hoping for the best may not be the best idea.
Sometimes couples are better off leaving their finances separate, and there is really no one answer to the question: Should newly wed couples blend their money or leave it separate?
Trust is a big energy barrier. For example, while the failure to open joint accounts does not mean distrust of a partner, opening joint accounts signals that one person trusts the other. Trust dovetails to another question that couples should answer before walking down the aisle: Are they both on the same line and page about money management?
Some couples pool some money in joint savings and checking accounts, but also keep some money separate. Not fully merging finances is a convenient option, especially if one spouse’s financial habits differ from the other. A halfway merger permits spouses to see eye to eye when it comes to shared expenses and savings goals, but also gives each a measure of financial freedom. The halfway solution also presents some challenges, though, particularly for couples with unequal incomes because the spouses need to decide the individual contributions to joint accounts.
For example, will the higher earner contribute more per month to the joint account or will each person’s contribution be equal?
Some couples choose to keep things completely separate, but this separation creates issues when it comes time to pay marital bills and the partners must decide who is responsible for which bills.
Disagreements about money wreck more marriages than any other single cause. Spouses who take the time to come to a meeting of the minds about finances and money management avoid huge “money blow-ups” down the line.
When deciding to divorce the classification of property and debt is one of the first steps taken. Before being able to classify property and debt as marital/community or separate it is best to complete a comprehensive financial checklist.
