Protect combined funds during the division of property
When British Columbia couples get married, many changes take place in the lives of both parties. Along with having to get used to each other’s habits and ways of life, the unique financial profiles of two entirely different people are combined — often with the little prior discussion. Finances are blamed for many arguments in marriages, and if these issues are left unaddressed, it may even lead to divorce. What makes decisions about combining funds difficult is the fact that couples who are very much in love must also consider the possibility of divorce and division of property in those proceedings.
Although the dynamics of each couple are unique, a professional financial advisor says that allowing each spouse to maintain some economic freedom may avoid serious arguments. Some prefer to have their separate accounts with an arranged list of financial obligations for each spouse. Others find that a “yours, mine and ours” system works best for them. This allows each partner a personal account and some independence while they pay household expenses from a joint account.
Another option that works for some is for each spouse to be allotted a weekly or monthly amount of money — similar to an allowance — to do with as they please. Spouses can use this to treat themselves or to treat each other with a special gift or surprises. In cases in which one spouse tends to be a spender, this may be an effective way to control such habits without making it feel like punishment.
While each couple can work out a financial strategy that works for them, it may be wise to record the arrangement in a prenuptial agreement. This may avoid contention during the division of property in the event of a divorce. The assistance and experience of a British Columbia divorce lawyer to provide advice can prove to be invaluable.
Source: businessinsider.com, “Here’s how to combine your money when you get married, according to a financial planner“, Tanza Loudenback, Accessed on Nov. 18, 2016
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