Money Mondays – Sharing Money in Marriage

I answered this question on Quora.

Thought it relevant to share on a women’s platform.

If you are married, how did you and your spouse determine how much of your income to put in a joint account and how much to keep in your own account?

Let me tell you a story before I answer the question.

Ron and Rosie have been married for a couple of years, and earn almost equal amounts. Rosie is the one who runs the house – shopping, paying the domestic help and service vendors, paying bills. She is not very knowledgeable about investments and financial planning.

Therefore, it is convenient for her to take care of expenses from her income, while her husband invests his money for various goals. She feels secure that they are well taken care of by Ron’s financial acumen.

Unfortunately, the relationship sours. In a fit of rage, Ron asks her to leave the house with whatever she has in her bank account. He claims that all other assets like real estate, stocks, mutual funds belong to him.

Rosie is shocked. Reality hits hard that she was paying for their maintenance, but did not have assets in her name.

Let this story be a lesson for all couples, at whatever stage of the relationship they may be.

Take an estimate of the household expenses and contribute equal amounts to it.

2. Make investments in your individual names, and pay for it from your own account. Let the spouse or a child be the nominee. There is no harm in sharing details, if the relationship is okay.

3. If there is money left after household expenditure and investments, use it for your personal shopping, travel or leisure activities. You need not feel guilty about it, nor are you accountable to anyone else for spending money on yourself or your family.