GREENSBORO, N.C. — To have, to hold and to spend...all the days of your lives. Marriage can mean a merging of souls and savings.
A new study published in the Journal of Consumer Research found merging finances leads to "positive relationship outcomes." Couples expressed they were happy having spending transparency.
Financial literacy author Ja'Net Adams, who founded Debt Sucks University, said this topic is often top-of-mind for her newlywed clients.
"'I do' is only the beginning. Once the honeymoon is over, the real work begins. You realize that this person is now in your life and your space on a daily basis," she explained.
You Are One
Overall, Adams feels most couples, in most circumstances, should opt to join accounts -- primarily to grow wealth.
"Two incomes combined is much better than one. If debt needs to be paid off, your money working together pays that debt off quickly. Want to build wealth? Imagine both incomes being used to invest. You will reach a million dollars a lot faster," she explained.
Hesitancy
That said, if one party does have extensive debt -- or, on the contrary, both parties are financial stable and well-established in their individual careers -- Adams acknowledged there can be hesitancy.
"The thought of combining finances may be giving some people hives, because they can't imagine putting all of their money into one account with another person, even if that person is their spouse," she said.
Sometimes the source of the concern is a past history of debt from an ex-spouse or childhood trauma from living paycheck to paycheck.
"Whatever the issue is, that person needs to overcome it before combining finances," she said.
A Compromise
Couples don't have to take an 'all-or-nothing' approach. They can opt to form, for example, joint savings and checking accounts while keeping credit cards and investments separate.
"First, before getting married, you may want to consult a lawyer to get a prenup (prenuptial agreement). This will allow both of you to protect the money you had before the marriage," she said.
Adams also suggested keeping separate accounts for "fun" money to be used for individual pleasures and special treats, like dinners with friends and spa days.
"My preference is to have combined bank accounts, but I understand everyone is different, so do what is best for you!" she emphasized.