5 Creative Ways for Couples to Address Money Issues

Financial Tips

5 Creative Ways for Couples to Address Money Issues

Posted by COTO Insurance & Financial Services
5 years ago | May 13, 2019

Whether you’ve been together for decades, or you’re a brand-new couple, certain issues tend to plague nearly all romantic pairings. In particular, money has been cited as the leading cause in 22 percent of all divorces, and financial issues are one of the top three factors behind breakups*.

No one wants to see that happen, of course. A proactive approach to financial disagreements is so critical to the health of your relationship. Even if you’ve enjoyed years of marital bliss, it never hurts to communicate even more, or to consider creative methods of preventing disagreements. So with that in mind, check out these five creative ways that couples can address their monetary situations.

Split your income and contribute to a joint account. Under this arrangement, each partner splits their income 50/50, and puts half into a joint account which is then used for shared household expenses. This tends to work best for couples with similar earning levels, since one partner is unlikely to ever feel that they contribute an unfair amount.

Split income proportionately. Let’s assume that one partner earns far more than the other. Under this arrangement, the couple agrees to a proportional split of shared expenses rather than 50/50. In some cases the lower-earning spouse contributes something else of value to even things out (couponing and smart shopping to save on groceries, cooking, lawn maintenance, and so on).

Pool most of your income. With this situation, each partner sets aside a specific amount of their paychecks in an individual account, with the majority going into a joint account. Now you each have a bit of your own money, to spend on individual purchases (or gifts for one another), but you enjoy the teamwork of covering all shared expenses together.

Write it down. Whatever you decide to do, write down the facts of your agreement. Creating a “contract” might not sound romantic, but it’s a simple way to address future confusion or disagreement over the details. At least if an issue comes up, you won’t fight over it.

Establish your own retirement accounts. If you both work, you should both contribute to your own retirement account. Divorce is an unfortunate fact of life for many of us, and you don’t want to find yourself single and unprepared for retirement in your forties, fifties, or sixties. Plus, two retirement accounts mean two opportunities to become better prepared for the future! You might enjoy significant tax savings as well.

On that note, give us a call if you have any questions about your retirement account options. We can help you establish an account if you don’t already have one, and make other decisions to help you prepare for a stable future.

*according to Institute for Divorce Financial Analysts

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