Q: What's the Smartest Way to Merge Finances ?

A:

Merging finances is different for every couple – there is no single way guaranteed to work well for everyone. You can begin to find the right method for you as a couple by disclosing everything. Sit down and gain a thorough understanding about your partner’s spending habits, how much debt each of you is carrying, and what your credit scores are. Once everything is out in the open, you may find that you prefer to combine your assets and spending with joint checking, savings, and credit accounts. With this method, everything that was yours is now his and vice versa. This method works well for couples that want to be in constant communication about how they’re spending their money and what their future financial goals are. Another option is to have both individual and joint accounts. With this process, you each maintain the accounts you had pre-marriage, while also opening a joint checking and/or savings account. A portion of your paycheck goes into your personal account, and the remainder gets deposited into your joint accounts, to be used for household expenses and larger investments. This process works best for couples that wish to keep some personal autonomy, while still working towards financial goals together. A third alternative is to keep your finances separate. Shared household expenses are variable, and split fairly between you. You also each keep your credit cards in your own names (as well as any investment portfolios). Consider this option if you value your spending autonomy, don’t agree with your partner’s spending habits, or want the security of separate accounts.

In the end, it’s up to you to discover which method works best for your situation; but when in doubt, you can test the waters with both individual and joint accounts.

Article: weddingchannel.com