Set up a system for paying your bills before you get married.
Setting aside some time to discuss your finances with your future spouse is an important part of preparing for marriage. Newlywed couples are often saddled with credit card debt and students loans that they acquired when they were still single. Being upfront about your debt and forming a plan for merging finances can help pave the way for a healthy marriage.
Is a joint bank account right for you?
The decision to combine your bank accounts is completely up to you and your fiancé. Some couples opt for joint checking and savings accounts; others prefer to keep finances separate. If you decide on a joint bank account, be sure to transfer any existing automatic payments. If you keep your individual accounts, discuss whether you want to give each other access. When my husband and I got married, we kept our individual checking accounts, but opened a joint savings account, into which we deposited some of our wedding gift money. This is now our home repair fund, which we tap into only for special projects or emergencies.
Getting married with debt: handling credit cards
My husband and I both have credit card debt, which we decided to continue paying individually. But there may be some value in combining your debt if you can eliminate accounts with higher percentage rates in the process. Take a look at all your accounts and the corresponding APRs; you may be able to transfers balances with higher interest rates onto another card. Even if you keep your credit card debt separate, you may want to open an account for joint purchases, but make sure you set guidelines for its use.
Sharing household expenses
Initially, since my husband set up all the utilities at our new house and they were under his name, he was paying those bills, and I was paying the mortgage. But keeping track of what each of us owed the other soon became a nuisance. I took over all the bills, and my husband writes me a check once a month. Whatever system you come up with, make sure you are both comfortable with it and that both spouses have access to any account numbers and passwords in case of an emergency.
You may also want to come up with a plan for groceries and other regular household expenses. If one spouse has a special diet or eats a lot more, consider buying your groceries separately. My husband and I buy our own food and take turns buying items that are for joint use.
Considerations about married life and insurance
You will usually get a discount if you combine your auto insurance policies with your homeowners or rental insurance. Examine your policies and see which one offers the best rates. Do the same with your health insurance policies. Finally, consider getting life insurance if you don’t already have it, especially if you have significant debt. In the case of a tragic accident, you or your spouse won’t be left with the entire financial burden.
This is very good. I like the idea of combining one account for household needs and that your hubby pays you for taking care of the books.
Oh, he pays me for his half … I hope that made sense! Maybe I should have clarified … we split the utilities and the mortgage payment 50/50.
Great idea. Couples should know before they get married how they plan to set up their finances. It can ease a lot of stress later on if they do!
Great tips! Now If I just had known that before my first marriage. I kid, I kid..great tips.
Nice information, and so important. Look forward to reading more from you.
I just got married in April and didn’t even think about changing the car insurance to a joint policy to save money. I’ll be calling them this week to see if we can save some money. Great tips!
That’s great … definitely call them and ask about their multiple policy discounts. And while you’re at it, it doesn’t hurt to call around and get a few quotes from other companies to make sure you’re getting the best rates. Congratulations on your wedding!
I’m weird, but my first gut reaction when discussing this with future spouse was to hide away my checking account so I could have something that is just mine. I’m weird like that.
I don’t think that is weird … it’s totally natural to want to hang on to something that is just yours, especially if you have always been single and independent. A big part of the reason my husband and I kept things separate is that I didn’t want either of us to feel like we had to get “permission” if we wanted to buy something for ourselves. I still have an individual savings account, which is technically “mine” (but really I know it’s “ours” if we need it for an emergency).
[...] Relationships and Money: Combining Finances After Marriage [...]
Great article. When my fiancé and I get married, we plan on having a joint checking account for household bills and a joint savings account to save for a house and for vacations. I will do all the bills but we will both contribute one set amount to this account each month for rent and utilities. All debt is being kept separate.
I had this discussion with my Beloved at the outset of our 13-year love affair. Your article shows that love, common sense and good business absolutely belong at the outset of a marriage/relationship.
A solid arrangement of a couple’s finances builds a vital part of the foundation on which any successful relationship is built.
Brava!
You provide some interesting information that I never really thought about before. My husband and I got married relatively young, but we went to college and accumulated debt together, so we never had to worry about combining finances. I guess we really had no finances to combine at the time, since we were poor students.