Envision Financial

Managing Money After Marriage

Moving in together?
Here are the top two tips from our experts for managing joint finances

When couples move in together, it's often idyllic in the beginning. Everything is new and exciting but inevitably, there's a jolt in the honeymoon phase whenever financial issues arise. While it may not be the most romantic thing to talk about, couples need to discuss their financial situation fairly early on and come to a mutual agreement on how they'll handle their expenses to prevent problems from escalating.

There are two common arrangements couples might want to consider when deciding how to merge their finances:

Contributing equally to the family pot

The first arrangement is for couples to maintain their personal accounts and then redirect funds into the family pot or joint account to cover off their share of the household expenses. The benefit of this approach is that each person can be financially independent while contributing equally to their joint expenses. This is a good option for couples who are either coming into the relationship with different assets and debts or those who are entering into a second marriage.

Funneling all funds and expenses into and out of a joint account

The other common arrangement is more traditional with both parties directing their income into a joint account and expenses all coming out of this same account. The couple should then establish an allowance for each other which they are free to spend however they'd like. It gives people the autonomy to still buy something for themselves without having to ask the other person for permission, while also ensuring they are able to save and contribute to the family.

By no means are these the only methods people can use to sort out their expenses. Every situation is different and what works for one couple may not work for another. The important point is to have the discussion and talk through finances so you are well-equipped to deal with finances before they become an issue.

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