Whether you're getting married for the first or second time, or if you are moving in with your significant other, having a plan for sharing finances with your partner is crucial. Of course, a prenuptial agreement is advisable for any couple planning to get married. But even if haven't gotten there yet, a financial plan is something you should consider before comingling your funds. In today's blog, your Western Pennsylvania Family Lawyers provide some insight into financial planning for the next step in a relationship.
What works well as a financial plan for one couple may not fit the needs of another. There's no "right solution" for every couple when it comes to handling the money situation. There are some common situations that have been successful for many of our Pittsburgh family law clients.
Some couples keep most of their finances separate, except for one joint account. Both people contribute equally to that account. This approach is good for couples who earn roughly the same income and have roughly the same amount of debt. If you think this scenario could work for you, consider setting up a joint account for all shared expenses and then have both contribute equal amounts to that account.
A small twist to the above mentioned scheme includes each partner contributing a percentage of income to the shared account, rather than a dollar value. This approach is a good alternative for couples who earn unequal incomes.
Another scheme that may work for some couples is one in which each partner picks certain bills and pays those each months. For example, one person would be the electricity and water bill each month and the other would pay the cable and phone bill monthly. Though the amounts paid may be different every month, overtime the amounts paid, if the bills are divided logically, should end up balancing out.
It is best to speak with your partner about finances before taking the next step in a relationship, be it moving in together or getting married. These suggestions, though effective for some couples, may not work for you and your partner so communication is key.
If you and your partner have decided to get married and you want to ensure that your finances are secure, consider a Pittsburgh prenuptial agreement. Even if you aren't a newlywed, you can still take steps to protect your finances going forward via a Pennsylvania postnuptial agreement. For more information about these marital agreements and how they can be helpful to you, call us today to schedule a consultation.