As a couple, you don’t talk about money during your first few dates. However, when everything gets serious, the couple needs to talk about money and how they should deal with their finances after marriage. As a matter of fact, many couples plan their financial future even before they get married. Although there is no guaranteed solution for everything, there is much financial software from IRESSthat can help in managing the finances for everyone’s convenience.
Should a Couple Combine Their Finances?
It is very important to talk about this topic even before you take a lifetime commitment with your partner. Should you merge your finances or just leave it like when you were single? Although there is no such thing as a ‘right moment’ to talk about this topic as a couple, a lot of financial advisers think that having a conversation before the wedding happens is seen as a good time.
To Combine or Not?
If you are asking for the right answer, you might be disappointed because there is no such thing as right or wrong on this topic. The couple has the freedom to deal with their financial lives but discussing how you should pay for your basic necessities is a must. This can also hover into deciding how you should divide your expenses if you have a different amount of income. If there’s nothing wrong, you can start to expect having a much easier and smoother life together.
But if you choose to merge your money under a joint account, everything will become a lot simpler because it will take fewer accounts to manage and transparency is inevitable. Although this is a good idea, there is also a downside to it – you may end up scrutinizing each other over the purchase of your partner. With a joint account, both of you can have access to the account, and therefore, you can withdraw anytime just by using a single signature. If you are also planning to merge your account before getting married, you will end up facing tax implications.
On the other hand, if you keep your income separated, you will have more freedom. But then, if your income is not properly managed or if you are not using financial software from IRESS, you will end up having a conflict with your spouse. In most cases, one will question where the money went and how he/she managed the salary. This will add more stress to your relationship and if left unresolved, this conflict will develop into a much more serious matter later on.
See The Bigger Picture
Although you may claim yourselves as good at managing your income, there will come a time when you disagree with something. One might want to buy a bigger house than planning for retirement while the other thinks otherwise. Some couples think that talking about money may induce awkwardness. But then, as a couple, money issues shouldn’t be handled this way. You must see it as something sort of getting to know each other.
