Combine Assets: Should Married Couples Merge Finances?

An article published by NerdWallet on January 14, 2020, entitled “Does Marriage Have to Mean Merging Money?” by Alice Holbrook discussed the pros and cons of couples merging their finances or combining their assets after they get married. I strongly believe that couples should discuss their financial situations before they walk down the aisle.

The article discusses three different methods that couples can implement in order to manage their finances after they tie the knot.

Separate Accounts

Each spouse maintains their own separate account and each spouse takes on different expenses of the marital unit.

Joint Account(s)

The couple combines their assets and pays all expenses from the same account.

Hybrid Approach

This method is becoming more and more common. Each person maintains their own account for their own personal spending and then the couple has a joint account for the home and other marital expenses. This can often lead to less friction when it comes to spending on things that only affect one person, like a night out with friends or student loan debt.

Every couple is unique and needs to decide on the method that works best for them as a couple. The article discusses some things that each couple should consider before deciding on what method is right for them, such as:

Convenience

A joint account may be easier to maintain and track. It eliminates the stress of tracking multiple accounts at various financial institutions.

Different Incomes

Often times, spouses make dissimilar incomes; this often leads to difficulty when dividing expenses.

Spending Habits

It is not always easy sharing your spending habits with your significant other, but it is important to discuss it.

Regardless of the method you choose, you need to openly discuss your finances with your future (or current) spouse and decide if you should combine assets. Having a future together means sharing financial goals!