Our Plan For Joint Finances

One of the things I’ve been thinking as Fiancé and I get slowly closer to our wedding date is how we’re going to handle finances as a couple. So far, we’ve kept everything separate. But once we get married, especially as we plan to have kids, it would be difficult for us to keep that sort of structure going.

And so after toying around with different models, we’ve settled on a his-hers-ours system for financial management.

Joint Money Map

The following diagram summarizes how we plan to structure our joint finances once we’re married.

Joint Finances - 2018

In this plan we max out all the retirement space available to us, including both our 401k’s and Roth IRA’s. We will each get $600/month as an “allowance” for our personal expenses. All our joint bills will be paid either via our joint checking or credit card. At the end of the month, any remainder we have will be dumped into our joint brokerage account.

Joint Versus Individual Expenses

This structure relies on differentiation between “joint” expenses and “individual” expenses.

Joint expenses are all necessary expenses that are important for us as a family unit. This includes our mortgage, insurance, taxes, car expenses, utilities, insurance, medical, phones, groceries, necessary family travel, and fitness plans. This also includes 10% of our post-tax income going toward charitable contributions like I’ve been doing solo (but instead we get to pick charities together as a family).

Individual expenses are all expenses that are for our individual benefit and fun that are not as high of priorities for us as a family unit. This includes eating out, hobbies, shopping, personal care, and solo vacation travel.

What if we get divorced?

If we get divorced, we’d each get to keep our own his/hers retirement and checking accounts. We would each then “repay” ourselves for the other assets we brought into the marriage and then split the remainder 50/50.

How would/did you structure finances with a domestic partner/spouse?

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