Make it a household thing
After you each know each other’s state of affairs and you have agreed on some short-, medium-, and long-term goals, now you can put everything in one pile and sort it together.
That is, you can make a budget. It’s the best way to bring together your obligations, your willingness to work together, and to start the path of your agreed financial future. Here’s how to do it.
Financial tasks: avoiding clichés
Now that you know everything about each other and have agreed goals and a household budget, there is one last step: clarifying who will do what.
You should decide which of you pays the bills each month, and who will handle tax stuff. There are also investment decisions to consider. If you invest in stocks, mutual funds, or bonds, find out which of you is better at it. Avoid the clichés that men are better at any of these things. The reality is that these tasks should be undertaken by the person with more knowledge or, in the case of a tie, the one with more time. However, the other spouse should never completely wash his or her hands and you should always maintain an interest in your household affairs.
Should you get a pooled joint account and ditch our individual accounts?
That’s really up to you. Some couples do, some don’t. Talk and go with what seems right.
Personally, I believe that if you save money by having only one account, then that’s the best option. It’s particularly handy if all your bills are going to be paid by the same person, too. This brings me to living expenses. While you may be used to a system that is something like “I pay for the food and he/she pays the utilities” I would caution against it if you have separate accounts. Likely you both have different salaries and expenses and things like food costs can change drastically month to month, as can utilities. I suggest you find a way to pool at least a percentage of your money to pay for shared expenses.
What about new loans and credit cards?
You may obtain debt together or separately. Again, your choice, but you should both always know of all debts incurred. Also be aware that community property states have the rule that any debt incurred by either one of you after marriage is the obligation of both of you. These community property states are: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. Alaska allows the spouse to ‘opt out’ of the debt of the one applying. There are many nations that still have community property laws as well, and if you read this outside the United States, check with the pertinent government agency to find out.
My suggestion either way: it’s wise for you to have at least one separate credit card each, in your name only. That way, in case of separation, divorce, or death (hey, I have to be pragmatic here!) you have been developing each your own separate credit worthiness.
Keeping communication open
With time we tend to fall into our routines and we let things run their course. Don’t do that with your money. Even when things are going well, make it a point of talking periodically about the household finance, goals, and new ideas. Your money is the responsibility of you both, and as with everything in life, responsibility is more bearable when shared.
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