Traditionally, we meet, we fall in love, we get married and we share everything. From bank accounts and credit cards through to savings and loans, when you partner up with someone it’s often expected that your finances will blend too. However, particularly given the complex relationship situations that can arise today, there are some very good reasons why you might want to consider keeping your finances separate from your partner’s.
1. It’s simpler if the relationship breaks down. No one wants to look ahead to a point at which the relationship no longer exists but it’s also sensible to consider the reality that this is always a possibility. If you have separate bank accounts and credit, separate interests in your property and you’ve maintained your own savings and investments then it will be a lot quicker and more painless to separate and move on.
2. You can avoid arguments about shared money. When finances blend there is often no accounting for the fact that one partner may earn more, or the other partner may earn less but spend more. It can get very tricky to try and identify who is the bigger earner and who is taking advantage of the shared finances in an unfair way. This often leads to arguments that simply wouldn’t happen if you had separate bank accounts.
3. There are few financial benefits to shared accounts. You don’t tend to get any discounts for sharing a bank account with your spouse – unless you pay for your monthly banking services in which case sometimes you can reduce the cost with just one account. So, there is no cash incentive to blend your finances when you’re in a couple.
4. Everyone remains accountable for their own responsibilities. If you have a shared credit card and your partner runs up huge credit card bills then you will be fully liable for their debt. Although this could happen under limited circumstances with a spouse’s individual credit card, it’s much more likely with shared finances. Either way you should be open about debt and money in a relationship.
5. You can still treat each other. There are many things that can help to keep a relationship going and often it’s the little details that contribute to long-term success in a marriage or partnership. For example, if your money is separate then any gifts you buy for each other will feel like genuine gifts – as opposed to presents that have been paid for by shared funds that you’ve contributed to yourself.
6. Your credit scores can be easily separated. Any shared account, whether it’s a joint bank account or having both names on an energy bill, will create a link between your partner’s credit score and your own. So, the fewer shared financial accounts you have, the more separate you will be in terms of credit history. According to personal finance experts Solution Loans this becomes particularly important is if your partner’s credit score starts to go south. Any lender reviewing you for a loan or credit card will follow the link between the two reports and make a judgment about your potential as a borrower that factors in your partner’s bad credit.
