Combining Finances After Marriage | New York Life (2024)

FAQs

Should you combine finances when you get married? ›

A joint bank account can also help couples have honest conversations about money, manage and monitor spending to avoid debt, and stay on the same page when it comes to budgeting and making financial decisions. This can help create financial harmony and avoid monetary stress for everyone involved.

If you and your spouse already have accounts at the same bank, the process is simple. Both parties should be present, with valid IDs, then you can close one spouse's account completely, transfer their money to the other spouse's account, and add their name.

Many couples split bills 50/50, especially if they are earning similar salaries. If your incomes are significantly different, however, a more equitable solution might be to split expenses proportionally according to each partner's income.

Ultimately, you should do whatever makes the most sense for you and your partner. Whether you choose to have separate, joint or both types of accounts, the key is to communicate frequently and openly to find the best path forward.

Should married couples make financial decisions together? Even if you don't merge all of your money, it can be a good idea to work together on some key financial decisions that will impact both of your futures.

Key Takeaways

Joint checking accounts can help build trust and transparency between partners, but having separate checking accounts can help promote autonomy. Using both personal and joint accounts in your relationship can help you reap the benefits of each method.

Get on the same page with your spouse. Make a list of all your checking and savings accounts and sources of income. Move all your direct deposits and automatic expense withdrawals (like rent, electric bills, etc.) to one shared account. Update any scheduled expenses so they come from the new account.

Joint bank accounts are best for couples who've been together for a year or more and have shared expenses, but only if both people manage their finances responsibly. If your spending habits are similar to your partner's, you're more likely to benefit from joining funds.

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.

The most common way to use the 40-30-20-10 rule is to assign 40% of your income — after taxes — to necessities such as food and housing, 30% to discretionary spending, 20% to savings or paying off debt and 10% to charitable giving or meeting financial goals.

Should married couples split bills 50/50? ›

There are a few ways to do it, and there's no one “right” answer. You could just split everything 50-50 and call it a day. But if your incomes aren't anywhere close to equal, one person may be putting entire paychecks toward shared bills, while the other has a lot of extra money to spend.

Combine your bank accounts and credit cards.

Budgeting is easier and more organized when your money is in one place. A joint savings account also helps you work toward taking your next vacation or purchasing a new home.

Financial infidelity is when couples with combined finances lie to each other about money. Examples of financial infidelity can include hiding existing debts, excessive expenditures without notifying the other partner, and lying about the use of money.

Couples who are remarrying may find a prenuptial or postnuptial agreement helpful when preparing to combine finances. These agreements are often wise if you're bringing separate assets into the marriage—such as an inheritance or existing property—and you want to specify how those assets will be treated.

Because you've already integrated the rest of your lives, your instinct may be to combine your finances. But there may be reasons to keep your investing accounts separate from your spouse's. Each couple is unique and that they should consider their own personal circ*mstances when making this decision.

The Bottom Line. Getting married and staying married for the long term brings the opportunity for more financial security, provided that each spouse practices good family financial habits. Don't spend more than you have and limit—or eliminate—the use of credit cards.

Nearly 2 in 5 couples, or 39%, of couples who live together completely combine their finances, whether they're married or not, according to a new report by Bankrate. Yet, this is not completely the case across generations.

Any debt you've assumed before marriage remains your own after you tie the knot, while new debt you take on after the wedding may or may not be shared with your spouse—depending in part on the state you live in.