Money Therapy - How to Merge Your Finances for Newlyweds (2024)

FAQs

What percentage of married couples combine finances? ›

39% of couples had combined all their finances, 39% kept things completely separate, and 22% did a partial combination. A final survey I can bring to your attention is conducted by creditcards.com with a sample size of 2,404 adults. In their survey, they found that 43% of couples had only joint accounts.

Use Percentages

“This is what I want you to do,” Orman continued. She suggested combining both incomes of $3,000 and $7,000 to make $10,000. And then divide that into the household expenses which is $3,000. Expenses divided by income should give you a percentage of 30%.

Do not subtract other amounts that may be withheld or automatically deducted, like health insurance or retirement contributions. Those will become part of your budget. The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.

Combine your bank accounts and credit cards.

Budgeting is easier and more organized when your money is in one place. A joint savings account also helps you work toward taking your next vacation or purchasing a new home. Visit a bank together and speak to a specialist about account options.

This was because long-standing corporate cultures are very hard to integrate, with the result that productivity and morale fall off after a merger. One company might have a warm, convivial culture, whereas the other is formal and hierarchical, for example. Mixing them can be difficult to impossible.

There's no rule that getting married means you have to combine everything, including money. For couples in certain situations, such as blended families, couples with financial incompatibility or a spouse with an inheritance, it may be best to keep at least some finances separate.

The easiest setup is to have a joint account that both fund to pay shared expenses. Then each partner can have separate accounts to pay for individual assets. Both partners share the financial burden of day-to-day expenses while maintaining financial independence.

Financial infidelity occurs when one partner hides or misrepresents financial information from the other, such as keeping secret bank accounts or hiding purchases. It does not necessarily involve marital infidelity, though it can lead to divorce.

Once upon a time, such spending was a huge, homewrecker of an issue for us. But in September of 2010, my husband, Chris, and I adopted an allowance system. Ever since, we've granted each other $500 a month to spend however we want, no questions asked. And this is how we're still married.

There isn't any right or wrong way to split bills. It's all about open communication and what's important to each person. It's perfectly normal to split any bill, whether an electricity bill or a dinner bill — but you don't have to split every bill every time.

How do you blend finances in a marriage? ›

To start, leave some of your accounts separate. Then, try starting a joint account for shared expenses, such as rent, groceries and utilities. Make a list that outlines assets (investments, bank accounts) and debts (student loans, credit cards) and who they belong to and what you'll split.

Nearly 2 in 5 couples, or 39%, of couples who live together completely combine their finances, whether they're married or not, according to a new report by Bankrate. Yet, this is not completely the case across generations.

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.

If you and your spouse already have accounts at the same bank, the process is simple. Both parties should be present, with valid IDs, then you can close one spouse's account completely, transfer their money to the other spouse's account, and add their name.

Some couples pay their household bills from a joint account to which both partners contribute. Others divide the bills, with each partner paying their share from their individual accounts. It's also important to make sure the division of bills is fair and equitable for both partners.

When it comes time to merge your finances for your second marriage, some people choose joint accounts while others may want to maintain separate accounts. There's no one-size-fits-all solution, but there are ways to decide which path is right for you.

Pros of Combining Finances With Your Partner

By having a joint account, you can easily track your income and expenses, pay bills and save for your shared goals. You don't have to worry about splitting costs or transferring money between accounts. Build trust and transparency.