Should Couples Merge Their Finances? New Research Weighs In (2024)

FAQs

Should Couples Merge Their Finances? New Research Weighs In? ›

The first question is easy to answer: The research suggests that combining finances is better for couples. For example, a 2022 paper found that couples who pool all of their money have greater relationship satisfaction than those who keep either all or some of their resources separate1.

Combining finances with your spouse can help foster trust and transparency, as both of you are responsible for each other's financial security. Merging finances and philosophies can also create a solid foundation of trust that stretches beyond money management.

Even if you don't merge all of your money, it can be a good idea to work together on some key financial decisions that will impact both of your futures. Making financial decisions together can have multiple benefits, including increased closeness and trust, less conflict over money, and better financial outcomes.

Bottom line. If you're married or living with your partner, you can choose to keep your finances separate. But even in this case, you'll still have shared goals and expenses that call for a budget. Just like with anything in a relationship, communication is key.

Mine, yours, ours

Most wedded couples share at least some financial accounts – 77%, according to Bankrate. Of them, 43% combine all their accounts, keeping nothing separate. In either approach, marital experts urge couples to talk about money before approaching the altar.

Key Takeaways. An honest conversation about money early in a relationship can help couples minimize potential conflict later. If you and your partners have different money personalities, you may need to get on the same page about how you'll handle different financial scenarios.

There are many couples who on realizing that the spark has gone from their relationship make the decision to stay together for financial reasons. This may raise many an eyebrow, but it is perfectly logical reasoning, and it can work. People are not necessarily happier when they divorce.

The 50-30-20 budget rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must have or must do. The remaining half should dedicate 20% to savings, leaving 30% to be spent on things you want but don't necessarily need.

The No. 1 rule for saving your marriage is communication. All other efforts to improve a relationship will likely succeed with this foundation. It allows partners to build strong bonds even during tough times and resolve issues easily.

Many couples split bills 50/50, especially if they are earning similar salaries. If your incomes are significantly different, however, a more equitable solution might be to split expenses proportionally according to each partner's income.

Can you get married without combining finances? ›

There's no rule that getting married means you have to combine everything, including money.

Financial infidelity is a term many people are not familiar with, but it can have serious consequences in marriages and relationships. Financial infidelity occurs when one partner hides or misrepresents financial information from the other, such as keeping secret bank accounts or hiding purchases.

“I think it's almost not fair to split finances 50-50 without taking into account your partner's financial situation,” said Daigle, who is also a member of the CNBC Financial Advisor Council. “It's really important to get a better financial picture of what's going on with your significant other.”

The question of merging finances upon marriage is as old as the institution itself. Financial guru Dave Ramsey says it's a categorical "yes"—when you tie the knot, it's all about "ours" not yours or mine.

Joint accounts also foster a deeper sense of trust.

Studies, such as those by Northwestern Kellogg School professor Eli Finkel, suggest that joint accounts can bolster relationship satisfaction by fostering communication and alignment on financial priorities.

Couples who pool their money are more likely to stay together, research finds. Whether or not couples combine their money, specifically liquid wealth, may help determine whether their relationship will last. Couples who communicate openly about money tend to feel that they're on the same team.

Studies have shown that couples who have similar spending habits, savings goals, and attitudes towards money are more likely to have a successful long-term relationship. By understanding each other's financial habits and priorities, couples can work together to achieve their goals and avoid financial conflicts.

Financial experts won't deny that joint accounts can have benefits for a couple, but for some experts those benefits can be maintained even with separate accounts. Plus, separate accounts may prevent uncertainties about each other's spending habits that occur with a joint account.

They need to have a shared set of goals and how to fulfill them. A stable marriage requires careful spending, budgeting, investments, and savings to have a secure future. A couple needs to have an open talk about their long-term goals. Aligning financial goals is a good way of securing the future.

50-50 Bill Split

Splitting shared bills down the middle is one of the easiest approaches to a joint financial life. Each person pays half. This straightforward approach makes budgeting as a couple consistent. Each person pays half the rent, subscriptions or insurance from individual accounts.