(MoneyHippo.com) – You might assume finances will merge, along with everything else, if you get married and begin your life journey together. Keeping separate checking and savings accounts might be a better idea for many couples. Here are three reasons why.
- Previous life: Each partner might have built or accrued assets of their own before entering into the relationship. Keeping these premarital items in each person’s name ensures they don’t become marital property. In case of a possible divorce, the move could safeguard inheritances, retirement accounts, and investments you acquired before tying the knot.
- Independence: If the two of you have different spending and saving habits, having joint accounts could cause troubles in the relationship. Having individual accounts allows you to manage finances as you wish without having to monitor each other. Consider opening a joint account you both contribute to for shared bills.
- Obligations: Coming into the marriage with debts and merging accounts means becoming responsible for those obligations. The marital assets could also be subject to lenders and collections, affecting both partners’ credit scores if left unpaid and causing strife between you.
Stay on track and maintain joint long-term financial goals by discussing money before you marry, setting up a budget system to track progress, and keeping your independence by retaining separate accounts.
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