#Marriage and finances plus

'Keeping separate accounts can magnify financial tensions, especially if dollar amounts and transactions are kept private,' Gaudio says.įor those who are still hesitant to be completely open with their money, Malani recommends a 'side stash' workaround for both partners. Whatever the case may be, it's helpful to walk yourself through your decision-making to really evaluate whether it makes sense to keep things separate.

Maybe it's because your partner has opinions on how you spend your money or maybe you just want to preserve a sense of autonomy. If you don't want to merge finances with your partner, Malani suggests asking yourself why not. 'Maybe you do 6% and they do 4%.' What to consider if you don't want to combine finances at all 'For example, if you and your partner need to contribute 10% of your household income to be on track for your joint retirement goal, but your company offers a better match, you might split the total percentage up differently than each contributing 5%,' Malani says. While the assets in your retirement accounts, like a traditional/ Roth IRA or 401(k), cannot be combined with those of your significant other, Malani also has a tip for sharing retirement strategies: You should have one retirement goal as a couple and therefore one strategy that ensures all accounts (whether in your name or theirs) are being considered with the joint goal in mind. 'Some states require the same for an IRA account.' 'Federal law requires the spouse to be the primary beneficiary of a qualified plan like a 401(k) plan, unless a waiver is executed,' says Paul Gaudio, a New Jersey-based wealth planning strategist at Bryn Mawr Trust. Retirement accounts cannot be held in joint names, but there is a workaround for this: Designate your spouse as the beneficiary to your account should anything happen to you. Chase Sapphire Preferred® Card, Capital One Venture Rewards Credit Card, Bank of America® Customized Cash Rewards credit card, Citi® Double Cash Card and American Express® Gold Card are top rewards cards with no additional authorized user fees. You and your spouse may want to also consider credit cards that don't charge authorized user fees. So, instead of both of you paying $550 to each have the card, you can pay $625 together.

#Marriage and finances plus

Rather than paying two annual fees, you can pay an annual fee plus an authorized user fee, which ends up costing less.įor example, the Chase Sapphire Reserve® has a $550 annual fee and it's $75 to add an authorized user. Plus, teaming up with a partner might make good financial sense. If you sign up for a rewards credit card, you can 'use your newly established joint checking account to pay off that credit card every month, and you'll be earning flight credits, hotel rewards and other bonuses along the way,' Malani says. Sharing a credit card can be a smart way to maximize the rewards you can earn on all your joint purchases, whether you open a joint card or have the spouse with the lower credit score become an authorized user on the other's credit card (which comes with the added benefit of potentially boosting their credit score).