Joanna Marie O. Santos
July 17, 2023

In today’s economy, it’s important to be resourceful to stay afloat. Handling your finances in a relationship is a critical responsibility. Most couples decide to have a joint account for their incomes or split the bills between them. In this kind of situation, it is crucial to have clear communication and complete trust between the two parties, otherwise, issues could easily arise. 

 

Money is a tricky and touchy subject. It could even be difficult to broach the topic with your partner because it ends up causing a rift in a relationship. Most couples fight and struggle about money, and that’s what we’re trying to prevent here. 

 

There are benefits to splitting finances–it’s common, especially with married couples. After all, the most practical way seems to pay for your expenses. On the other hand, this strategy may not work for everyone and could be the reason for your troubles. If you want to know which option would be most beneficial for your situation, we have listed down the pros and cons of splitting finances to help you out. 

 

Pros of Splitting Finances

 

Before deciding on splitting the finances with your partner and coming up with the best way to do it, the first thing you should do is assess your situation. Are the both of you financially secure, with a steady income? How much is your income each? What are your expenses? This conversation is an important step before you could go forward. As a couple, you need to make sure that you are on the same page with your partner and assure that you completely understand where the other stands financially. A relationship’s foundation must be built on trust and communication.

 

So why should you split your finances?

 

Stability And Equality

 

Splitting your finances could lay the foundation of stability and equality in your relationship. With this strategy, you settle who pays which bill so you don’t have to argue about it every time. You decide you pay for what you can afford. Studies show that this helps strengthen the relations and establishes equality because both carry the financial responsibility instead of only one party shouldering the expenses. 

 

More Beneficial To Low-Income Couples

 

There are greater benefits to splitting finances when you’re a low-income couple. When you’re both contributing money, it could help you cover the expenses better. 

 

Promotes Relationship Satisfaction

 

Splitting finances establishes a “you and me” mindset. Research finds that this promotes relationship satisfaction because you feel like “you’re on the same team” with your partner. It also allows you to have a shared financial goal to work toward. 

 

Cons of Splitting Finances

 

On the other hand, here are some issues that may arise when splitting finances.

 

Income Inequality 

 

In a relationship, there are instances when one party has more income than the other. With this disparity, it might be a little unfair to split all the expenses when it’s more practical that you allow your partner to cover the higher bills. After all, shouldn’t you have each other’s backs in a relationship?

 

Mismanaged Money

 

You may have a different set of attitudes and behaviors towards money compared to your partner. It’s possible that you don’t see eye to eye regarding these things. They may be a big spender while you like saving money, and they end up not committing to their responsibility. This is when you have another conversation and see how you can compromise. 

 

Stress And Arguments

 

Many couples get into an argument about money spending. It’s common to feel stressed about your finances especially when there just isn’t enough money on the table. Things may go smoothly for a while until both of you crumble under stress and responsibility.

 

How To Split Your Finances

 

There is no best way to split your finances–it’s about which way will work out best for you. After having a discussion with your partner, here are the common methods you can try to figure out how to divide up the costs based on your income:

 

Equal Sharing

 

Splitting the expenses down the middle is the right way to do it when both parties earn nearly the same amount of money.

 

Proportional Sharing

 

If you’re a couple with income gaps, it makes sense that you divide the expenses based on a “percentage of income.”

 

Proportional By Usage

 

With this strategy, the person responsible for an expense should pay for it, such as subscription bills being paid by whoever uses them most. This way, you bear responsibility for your own spending without your partner resenting you for it. It’s equitable for both parties involved.

 

Communication Is The Key

 

It’s a big step to decide that you and your partner are going to live together, but it requires that both of you have to start a crucial conversation about your finances. Money and relationships rarely mix well together. Some people avoid the topic altogether because they find it unforgettable, or they just want to avoid conflict. In many cases, financial problems are the reason married couples split up in the end. 

 

Consistent communication, commitment, and trust are the key here.  Research says that couples who openly talk about money are more likely to be on the same page and are better able to achieve their financial goals. It’s critical that you and your partner come to an agreement. Discuss finances, expenses, debts, and responsibilities, so you know what to do in case an issue does arise. Devise a financial and budgeting plan. Don’t be scared to have open and honest conversations. Couples who avoid financial conflicts stay happier together.