By Jonathan Theunissen, CFP ®

Money is one of the most common sources of stress in relationships, but it doesn’t have to be. Whether you’re newly married or moving towards marriage, aligning your approach to money can create harmony, build wealth, and strengthen your relationship. While there are different ways couples can manage their finances, research strongly supports the idea that married couples who manage their wealth as a team tend to experience greater financial security and relationship satisfaction.

The Different Approaches to Managing Finances as a Couple

There is no one-size-fits-all approach to managing money as a couple. Here are the three most common methods couples use:

1. Fully Combined Finances
   Couples who take this approach pool all their income and expenses into shared accounts. They make financial decisions together, whether it’s about daily spending, investments, or long-term goals. This method fosters transparency and teamwork and aligns financial resources with shared goals.
2. Partially Combined Finances
   Some couples prefer to have a joint account for shared expenses (such as rent, groceries, and bills) while maintaining separate accounts for personal spending. This allows for a level of independence while still collaborating on household finances.
3. Completely Separate Finances
   In this approach, each partner maintains their own income and expenses, splitting shared costs in a way that makes sense for them. While this method allows for financial autonomy, it can sometimes lead to challenges when making major financial decisions as a unit.

Why Being on the Same Page Matters

No matter which method a couple chooses, the most important factor is alignment. Research from the University of Kansas found that financial arguments are one of the leading predictors of divorce. On the other hand, a study published in the Journal of Marriage and Family found that couples who manage money together and work as a financial team report higher levels of marital satisfaction and long-term financial success.

Why? Because when couples view their financial situation as “ours” rather than “mine” and “yours,” they are more likely to plan, save, and invest for the future in a way that benefits both partners. Joint financial decision-making fosters trust, encourages open communication, and ensures that both individuals are working toward the same financial goals.

Steps to Successfully Merging Your Finances

If you and your partner are ready to align your finances, follow these steps:

1. Have an Honest Conversation About Money

Start with an open discussion about your financial history, habits, and goals. Talk about any debts, income sources, spending tendencies, and expectations for the future. Transparency is key.

2. Set Shared Financial Goals

Whether it’s buying a home, saving for retirement, or taking annual vacations, aligning on common goals gives purpose to your financial planning and spending decisions.

3. Choose a Money Management Approach That Works for Both of You

Decide how you will handle everyday expenses, savings, and investments. If you’re unsure, consider starting with a partially combined approach and adjusting as you go.

4. Create a Budget Together

A joint budget helps you manage spending and ensures that both partners have a clear understanding of where money is going. Use budgeting apps or simple spreadsheets to track expenses and progress toward goals.

5. Define Roles and Responsibilities

One person may be better at tracking expenses, while the other excels at long-term investment planning. Divide financial responsibilities based on strengths, but maintain open communication and regular check-ins.

6. Build an Emergency Fund and Plan for the Future

Protect yourselves from unexpected expenses by maintaining an emergency fund. Additionally, discuss long-term financial plans, including retirement and estate planning, to ensure you’re aligned.

7. Schedule Regular Money Check-Ins

Set aside time monthly or quarterly to review finances, adjust plans, and celebrate milestones. This keeps both partners engaged and informed.

Final Thoughts

Merging finances isn’t just about money—it’s about building a shared life together. Research supports that couples who manage their finances as a team experience stronger relationships and greater financial success. The key is to communicate openly, work toward common goals, and find a system that works for both of you. By doing so, you’ll not only build wealth but also strengthen your partnership along the way.

If you’re unsure where to start or need help navigating financial planning as a couple, consider working with a financial planner to create a strategy tailored to your needs.