Most couples will face a number of different problems throughout their marriage, some of which might even end in divorce. In fact, money problems are frequently cited as the No. 1 cause of divorce.
Money problems can take multiple forms — neglecting to set long-term or short-term financial goals, assuming too much debt, wasting money on unnecessary purchases, and so forth.
The marriage might be further strained if money problems lead spouses to blame one another or to hide the extent of the issue. The financial pitfalls from poorly managed joint finances can be disastrous for the entire family.
There are several proactive steps a couple can take to help avoid a financially unsound marriage. For practical guidance on handling money together, see Navigating Financial Challenges in Marriage.
Practical steps to protect your finances
- Designate specific purposes for your joint income. Each financial goal or purpose should have a specifically designated bank account. You may only be able to start each account with the minimum required deposit, but the important thing is that you've set your goals and designated a savings portal.
- Make open, effective, timely, and focused communication about your finances a priority. Computer programs and budgeting apps can help you keep track of what you earn, spend, and owe. In most situations, it should take only 15 to 20 minutes to review finances at the end of each day or week. At minimum, each spouse should give the other periodic reports on the financial tasks and obligations they oversee.
- If you want your money to grow through investments, research thoroughly before committing to real estate, stocks, or other assets. Weigh the pros and cons of each option and build a strategy from the ideas that interest both of you.
- Make sure your marriage feels financially fair. Some couples use a prenuptial agreement when there is a large wealth discrepancy or a late-in-life marriage. Whether or not you have an agreement, divide money-related tasks in ways that leave both partners comfortable and capable. You don't need to scrutinize every purchase, but you should clearly communicate spending concerns and how they affect shared goals.
- Plan for the unexpected. Protect your family's financial security with disability, life, and health insurance. Each spouse should have a will and a power of attorney. Spouses who own a business should keep separate books for tax purposes so family and business finances do not become intertwined.
With a little work and proactive planning, you can help ensure a financially sound and secure marriage. Financial well-being is an ongoing process that requires consistent and open communication.
For help that also covers related legal and counseling topics, consider reviewing Navigating Financial and Legal Challenges in Marriage.
Frequently Asked Questions
How often should couples review their finances?
Couples should check budgets and bills weekly and conduct a more detailed review monthly to stay aligned on goals and catch problems early.
Should married partners combine all bank accounts?
There is no one right answer; many couples use a mix of joint and individual accounts to balance shared responsibilities with personal autonomy.
When is a prenuptial agreement advisable?
A prenuptial agreement can be helpful when one or both partners have significant assets, business interests, or children from prior relationships.
What types of insurance are most important for married couples?
Life, disability, and health insurance are key to protecting household income and providing for dependents if a partner becomes unable to work or passes away.