Marriage and Finances: What To Consider and How To Plan

When marriage and finances come together, a lot can go wrong, especially if the partners each have very different views about how best to manage money. Communication and compromise can be key as you make important choices about taxes, bank accounts, debt and other issues.

Key takeaways

• Newlyweds should discuss their financial goals and whether to combine their bank accounts.
• Your spouse isn’t responsible for debt you had before the marriage, except in nine U.S. states.
• Married couples can file taxes separately or jointly, and each has its pros and cons.
• Partners should decide if or when they want to start saving to have children.

Joint vs. separate accounts

One of the first questions that comes up with marriage and finance is whether to share a bank account.

Shared bank accounts can make it easier for couples to focus on joint goals, like saving for a house. Research from Indiana University’s Kelley School of Business suggests that couples who share a bank account tend to have a better relationship.

But separate financial accounts have benefits, too, giving each partner more independence about how they spend money. Separate accounts can also reduce friction if you and your spouse have very different money-management styles.

Many couples use a combination of separate and joint accounts. Each partner might have their own personal account or credit card but also have a joint checking account for shared expenses and goals. A LendingTree study of married couples found that while 62% shared at least one account, only 41% shared all accounts.

Having a frank conversation can help you and your spouse decide how to handle your various accounts.

Consolidation of debts

In 41 U.S. states, you aren’t responsible for your spouse’s debt from before the marriage.

The remaining nine states have community property laws that make married couples responsible for each other’s debt once they get married. These are:

If you don’t live in one of these community property states, you can still share your spouse’s debt obligations by becoming a cosigner on their debt or by consolidating your debt together in a new loan, as joint applicants.

Creating and following a budget

Making a budget can help couples focus on their goals, whether they use a budgeting app or pen and paper.

Some things to tackle when you create your budget are:

Division of financial responsibilities

In your marriage, is one person better at administrative tasks like paying bills? And does the other partner have a different skill, such as finding good deals or keeping an eye on bank account balances?

When it comes to marriage and finance, each partner probably has their own abilities and interests. Finding which of you is best for each money task can help keep your financial life together running smoothly.

Joint vs. separate tax preparation

Married couples can file their taxes jointly or separately, and each option has its upsides and downsides.

This decision can be complicated, so talking to a tax professional is a good idea to avoid missteps and save money.

Financial planning for children

If you have or are planning to have children, they will be an important part of how you deal with your finances as a married couple.

Talk with your spouse about your timeline for children and how much you need to save for their health, education and other costs.

Ask yourselves if you should start saving for your kids’ higher education, maybe through a tax-advantaged 529 plan especially designed for this. Consider whether to get life insurance to protect your family financially. Speaking with a financial advisor could help as you prepare for a larger family.

Marriage and finances don’t need to be difficult so long as you’re willing to communicate about money and make room for each other’s needs and goals.