Modern couples have vastly different ways of navigating finances. The key to not letting money drive a wedge between you always starts with communication. Sharing financial commitments however does not mean that you have to share all of the same priorities, you just need to know what is important to each other and design your financial arrangements accordingly.
While we would never assume to give relationship advice, we are often asked to advise on the best ways for people to protect their personal wealth when they get into new relationships or start to build their personal wealth while in existing ones.
There are 3 ways we recommend clients consider discussing with their partner.
All finances are kept separate and the bills are split in a way that you as a couple are able to agree upon (50/50, 60/40 etc). Each partner keeps their own personal account and the money for household expenses is paid from a joint or separate account. Depending upon how much you and your partner earn, the amount that is spent on household expenses could be financially unequal or you can decide that you want to split the bills 50/50 regardless.
Allocating an allowance
All money from both partners comes into one account then once the bills and household expenses are paid, each person has an ‘allowance’ paid into individual separate accounts. This money is available for each partner to do with as they please. Great for allowing independent lives, particularly when buying gifts and having separate hobbies is concerned.
Put everything in one pot
This means running life from a single joint account, all bills and personal expenses are paid from a single point. This requires a LOT of communication because you each will have things you want to spend disposable income on. This will benefit those who have partners who are at home with children and so have low income where the wage earning partner wants to provide financial support.
Where wealth protection is concerned, the right choice of financial structuring is crucial. Every circumstance is different, that is why we work closely with our clients to make sure they get the best advice and support.