Should My Partner and I Split Finances?
There are some things you want to get right. That’s why we’re answering a common question today, “how should my partner and I split our finances.” If you want to reach financial sustainability and financial independence, start here by getting rid of any credit card debt with the free, 7-Step Credit Card Debt Slasher.
Watch this week’s discussion on how partners can split finances
How can my partner and I split finances?
There are some things you want to get right. That’s why we’re answering a common question today, “how should my partner and I split our finances.”
“How should my partner and I split our finance?” is a common question for us. The truth is however it is that works for you, as long as that allows all partners to move toward financial independence.
The Motley Fool/Debt Free Guys LGBTQ+ Money Study shows that when partnered, gay men and queer individuals who identify as straight are more likely to share most if not all accounts.
Meanwhile, everyone else, trans, bisexuals and lesbians who are partnered are more likely to split expenses while maintaining separate accounts.
So, what are your options regardless of your sexual orientation, gender identity, relationship status or structure of your relationship?
The 50/50 Split – Halfsies
Some partners feel it’s important for each partner to put an equal share of money toward household and family expenses. A sense of “things being fair and equal” is important to the relationship. However, it could give one partner some financial freedom that the other partner(s) may not have. This is why it works best when there’s a smaller income gap.
The Divided Split
I pay for some expenses, and my partner(s) pay for other expenses Partners look at all household expenses and separate expenses into Hers/His, Hers/Hers or His/His, Mine/Theirs to the extent that all household expenses are covered. One partner may cover all the rent or mortgage, while the other partner(s) covers utilities and groceries. This is most common when there’s a wage gap and can be difficult when one partner is temporarily out of work.
The Percentage Split
Everyone pays based on what they can contribute A percentage of each paycheck goes into a common, joint account from which all expenses are paid. Therefore, a portion of each paycheck is going to pay for every expense. This works best when there’s one primary “funding” account for all expenses with each partner committing to depositing an agreed-upon percentage of all household expenses to cover each pay period.