In the world of personal finance, the subject of how couples share (or don't share) their money comes up time and time again. It's no surprise. After all, money problems are a leading cause of divorce.
But for some reason, the concept that “personal finance is personal” doesn't always factor into people's opinions about combining finances — especially within a marriage.
Often, people argue that in order to be a team, couples must combine finances fully. Or that separate accounts mean there's some lack of trust within the relationship. Or that you aren't truly committed to each other. Or that you must not be on the same page about long-term hopes and dreams.
None of these things are true. Plenty of committed couples keep separate finances. These couples are teams. They trust each other. They share the same hopes and dreams. But for a variety of reasons, separate finances work well for them.
Today, I want to share an alternative to these two dominant modes of money management. I want to share how couples can both keep their finances separate — and combine them. Confused? Let me explain. [Read more…]