Getting Married? 3 ways a couple can combine their funds

Getting Married? 3 ways a couple can combine their funds

Financial Planning

Financial Advice

Excitement will build as you await your upcoming nuptials, let us start by saying congratulations to you both.

While we know that you can’t wait until you say I do, we also know that you’re probably deliberating over the tricky question, “how to combine your money as a couple”.

Every couple approaches this differently and there is no right answer.

Below we have listed three common approaches to help you decide:

1. The “All in One” Approach:

Some couples like to go “all in”, pooling all their income and spending from the one joint account. Everything you both earn is collectively viewed as “ours”. You also treat debts in the same way regardless of whose name is on the loan. For example, if one of you has a car loan and the other is still paying off a student loan, both burdens are shared. Couples who choose this approach like the benefit of having fewer accounts to track.

2. The “What’s Yours, What’s Mine, What’s Ours” Approach:
This is quite a popular approach where both you and your spouse still maintain a personal bank account (“Yours” and “Mine”) and have your own money to spend exactly how you please. You also decide to open a joint bank account (“ours”) where you both equally contribute to the shared account on a regular basis. Any debts incurred by each individual before the marriage will be paid directly from personal accounts. Whereas any joint purchases such as your mortgage on your house, your groceries or utility bills are all paid from your joint account.
There are two ways to manage your joint account.
  1. Each of you can contribute equal amounts at an agreed date (weekly or monthly).
  2. Alternatively, each of you can contribute in proportion to your income.
    • For example, one spouse may earn a lot more money and can afford to add additional funds, whereas if bills were very high and the lower earning partner had to pay a very large chunk, there may be very little left in their personal account resulting in a financial struggle for one half of the couple.

Some couples feel that equal contributions are a fairer arrangement, while others think it amplifies income disparities. It really depends on the personal choices of the couple and whether they are happy in their decisions.

3. The “You Get This and I’ll Get That” Approach:

This approach is tricky because it would be hard to decide on who should pay what bill. Nevertheless, some couples are happy to do this.

Under this approach, you both still maintain individual accounts and you might get one partner to pay the likes of your Mortgage and the other may pay all the utility bills.

Financial Planning Advice:

Every strategy has some benefits and some drawbacks, you need to be happy with your decision. Discuss all three options with your spouse and find the approach that feels right for you as a couple. You will have a lot of financial stresses to deal with before and after you get married. Therefore, if you require any assistance with your Mortgage Application, Financial Planning, Life Cover etc. Murray & Spelman (Financial Services) Ltd would be happy to help you.

Simply Request a CallBack today.