Ready to combine finances? Read this first
You and your better half share everything. His dessert? Your dessert. Her cozy towels? Now your cozy towels. If your relationship is solid and you’re thinking about merging your money, there’s a conversation you’ll need to have. It’s a big move, so we’ve come up with a list of things to talk about before you start sharing finances.
Put your cards on the table
And not just your credit cards. If you’re living together, it’s important to be open and honest about your financial situation. It can be a bit awkward, but if you’re building a life together, it won’t be the first or the last time you have convos about money. Nip it in the bud and start with a clean slate! Both you and your partner deserve a clear picture of what you’re getting into, so it’s a good time do discuss any debts that either of you have, and review banking or investment statements. Skipping this step might mean you’re on the hook for a debt or liability that you didn’t know about.
Consider making a legal agreement
If you or your partner both own substantial assets like property, vehicles, or even a business, it might be a good idea to speak to a lawyer before fully combining finances.
Figure out how you’ll share expenses
If you’re thinking about merging your money, part of why it could make sense is to reduce your living costs. Different things will make sense for different couples, but here are some ways it could work:If you’re living together, you could keep your personal finances separate, and open a joint account that’s used only for household expenses
- You could both contribute to the account equally, or maybe workout a percentage of each income if one of you earns more than the other
- You could also go through your expenses together, and each have certain bills you’d each be responsible for
- You could pool all your resources together, and pay the expenses out of your shared account
Sharing your finances might seem overwhelming, and it can be if you or your partner’s financial situation is complicated. If you have questions around what structure will work best, find a financial advisor that you both trust, and allow them to guide you through the process. That way, you can focus on the exciting parts of building your new life together.
Wondering how sharing finances will affect your taxes? Stop by H&R Block and chat with a Tax Expert. Ready to file? Find an office near you, or do it yourself with our free online software.