There are a lot of things to think about when planning your wedding: The venue, the dress, the rings, the cake, and countless other seemingly essential decisions. But have you thought about how you will manage your money once you are hitched? Will you keep your finances separate or combine your money with your spouse? As touchy as the subject of money can be, it's a great idea to have a general financial plan before you walk down the aisle. With the Christmas season being a favorite time to exchange vows, here is a guide to whether or not to share finances after your wedding:
It's a good idea to combine your funds if you consider all of the money you and your spouse make to be family money. Especially if one spouse is going to be the primary breadwinner for the family, combining finances enables both of you to have access to the money and make joint decisions on how to spend your funds. When you merge assets, you are coming from a place of total transparency where your financial picture is concerned. Sharing expenses can also make it easier to keep track of income, expenses, budgeting accountability, and set shared economic goals.
Combining finances makes sense for many couples, but it might not always be a good idea to share finances. As an adult, you may want to spend the money you earned as you see fit. When you combine your assets, you may not get to spend your money on what you want if your spouse has a say in it. If your spouse comes to the marriage with a significant amount of debt, you may want to keep your money separate at least while your spouse works to improve their finances.
Look at your individual situation to see how you can make it work for you and your spouse. There are numerous money-management strategies that can work, so sit down together and talk about your needs. A compromise may be to have separate personal accounts, one household account for bill paying, and a savings account for shared goals. That way, you still have control over your spending money, but you come together for shared responsibilities and visions.
With money disputes being a significant cause of tension in marriages, you must be willing to talk about finances, preferably before you tie the knot. Make sure your new accounts are set up, and that you have made necessary changes to your insurance policies. One of our trusted AAA life insurance experts can answer any questions you might have and walk you through AAA's policy options. Give us a call today at 1-866-315-1252 to find out more.