When my wife went down to a one income family we combined our finances into one joint account and haven’t looked back. However, for many couples the topic can be a delicate subject.

Here are the three basic options, each with pros and cons..





With this approach, couples combine their incomes and pay all expenses—both joint and individual—from their shared account. This makes tracking expenses very simple and helps build an open and transparent relationship. However, this arrangement can be hard for people who enjoy their financial independence.









If you choose this method, consider whether there will be some exceptional expenses you handle individually, such as paying off debt that you had before you entered the relationship.





Separate accounts and a joint account

With this approach, couples use their personal chequing accounts for individual expenses, but open a joint account to use for shared expenses like groceries, rent or mortgage payments, and utility bills.





Couples that choose this option can split their shared expenses easily. Because individual purchases are separate, though, budgeting as a couple can be more difficult.





If you choose this method, you need to decide which expenses will be paid for jointly, and how much each of you will contribute to shared expenses. Will you split them 50/50 or contribute a percentage based on your incomes?









Separate accounts





Couples maintain their separate finances, and split joint expenses as they come in. This may work well for couples who value their financial independence, but can be difficult in other ways.





Sorting out how to divide every expense takes some effort from each partner and can cause confusion. Also, budgeting as a couple can be complicated when you both maintain separate accounts.





How you decide to arrange your finances as a couple can affect your individual credit reports. If you have a credit card together, only the primary card holder will develop a credit history by paying it off on time.





If you are thinking about expenses using a joint line of credit or a joint credit card, don’t forget to consider your responsibilities as a joint borrower before making your decision. If you co-sign a loan, you become equally responsible for repaying the loan.



