So you decide to have separate bank accounts as a couple. There are several reasons why this is a good idea.
Couples may want to keep their finances separate when one partner makes more money or if they have been burned by their partners in the past.
It’s possible that while the couples share a lot, they don’t share the same money management styles, or that they don’t want to give up their financial freedoms if they marry later in life.
Whatever the reason for separating bank accounts, married couples must follow some rules to cover bills such as mortgage, rent, utility bills, or any other joint bills.
Four suggestions have been developed for married couples to manage their finances separately. Here is what people need to know before moving forward with this financial arrangement.
Firstly, the couple needs to have an expense-sharing plan. He has two options: divide and rule or share everything.
You can decide that each partner handles a certain set of bills. For example, your spouse can handle rent and student loans while taking care of the kids and groceries.
Another option is to split the bill for everything, however, constantly splitting the bill can get tedious and lead to arguments or resentment.
Recommended for couples To open a bank account joint expenses. The amount each person contributes to the joint account “must be based on the percentage of combined household income that he or she earns.” For example, if one person earns €60,000 and the other €40,000, one person must cover 60% of the overheads and the other 40%.
The second proposal For couples with separate bank accounts it is important to keep accounts in both names.
Even if you pay the bills separately, it’s important that both spouses’ names appear on the mortgage or lease agreement, especially if you’re not married. The same rule applies to utility accounts. You don’t want to break up with your boyfriend and also cut off the electricity and water, because he was the only person listed on those accounts.
Recently, it is suggested that you take the time to plan the future together. So organize monthly meetings to review finances and bills and plan ahead.
When you and your spouse manage finances separately, you may not see your overall financial picture as clearly as couples with a joint bank account.
That’s why it’s important to have open conversations about money and be on the same page when it comes to financial goals. If you are married or in a relationship, you should know how much money your partner makes, what they are in debt, and what their spending habits are.