There are married couples that want to keep their money in separate accounts because they don’t want to ask permission to one another to buy something or sometimes they are avoiding dependency. They end up splitting their income equally to pay for household expenses.
Then there are couples that put everything in one big account. Which means each spouse asks permission to spend money. Ultimately there is no wrong or right way to handle the finances in a blended family, it’s whatever you both decide that are comfortable with doing. Just talk it over and write down the pros and cons about both ways. Here’s an important tip: When the ex-spouses request money to pay for things outside of their child support that they receive always directly pay to whomever the money is owed to. That way you can help ease tension and know that it’s going to the right place and not in the ex-spouses pockets.
- To have an emergency fund set up that is readily available for each spouse.
- Each spouse should have discretionary money available to meet their personal needs that they may have.
- Each spouse should have some credit in their own name just as a protection in case of a spousal death.
- Every budget/expense plan that you create make sure to include money for date nights with each other.
- Decide on who will pay the bills and manage the bank account. Little tip: Let it be the spouse that is a Saver, not the Spender spouse.
- What is the limit to which each spouse will need to get permission from one another to spend on something?
- When should credit be used? And how often?
- Establish life insurance and make sure the beneficiaries are in each other’s name.
- Make new Wills up. When dealing with Wills, it’s advised to seek an attorney and a financial planner who specializes in blended families.
- Prenuptial Agreements should also be discussed.
- Decide on how much each spouse will contribute to the household expenses
- What money is to be separated in checking, savings or investment accounts
When or if you decide that the money is going to go in one account:
- What money is shared
- How much money is personal
- What expenses are most important
- How much money goes into a savings account
- How much money is put in an emergency fund
- What yearly budget plans be created and by whom?
Have you had problems talking about money to your spouse? What have you found that worked best when discussing money?