by G M Burkart

Created on: November 11, 2008

Serious, long-term relationships are as much a financial partnership as one of love, trust, friendship and mutual support. These qualities are equally important for you finances, and like any relationship, what works for one couple may spell major money problems for another.

Commonly, newly-weds rush out to get their married life 'in order,' including the process of changing over names and, as a result, bank accounts. Although times are changing, most engaged couples or steady couples looking at co-habitation often don't sit down for a complete and honest discussion of their respective financial situations. More importantly, there's a huge need for more couples to honestly discuss their financial habits.

Let's take a look at some of the basic options open to you and your partner, based on personal finances and habits.

COMPLETELY SEPARATE BANK ACCOUNTS
If you or your partner have vastly different financial habits - i.e., you're a spender and they're a saver - you may want to keep your account separate for the time being. Maintaining financial independence is also a good way to build in redundancies in the chance case of sudden money problems. However, this is not always the best choice if trust is an issue: although you may trust your own finances, having little to no say in your partner's choices may lead to hidden relationship rifts if the subject is never open to discussion.

For many newly-married couples, this is probably a good short-term solution while you get used to living together.

SPECIAL-PURPOSE JOINT BANK ACCOUNTS
My spouse and I particularly like this approach, and it seems to work well for us. For shared expenses, there is a joint checking account for monthly payments, such as rent, power, internet, and so on. In general, there's enough slack in this account to keep paying for up to 3 months of bills, in the event of job loss or unexpected fees. If my spouse or I have a particularly poor paycheck from time to time, we've already put in our money ahead of time, and life goes on without a hitch.

In our situation, I'd also recommend sharing at least one high-yield savings account. One savings account can serve as the catch-all 'rainy day fund' which takes a percentage of all the money that comes in. If your financial situation allows it, determine what your savings goals are, and open two or three savings accounts - or better yet, CD accounts - each for various shared goals, such as a house, the next car, or that second-honeymoon vacation package. Track each

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