Financial questions before combining finances

The deeper into a relationship you get, the more important it becomes to talk about money and combining finances with your partner. So romantic, right? But if you and your partner decide to move in together or get married, then a conversation about opening a joint account is natural. A joint account is a shared responsibility, and—if something doesn’t work out—possibly one with lasting effects.

Even though you’ll be sharing with the person you love, there’s no need to rush into a joint bank account without a discussion. Make sure you and your partner talk about your finances first, so you know it’s the right choice for both of you.

Sharing finances as a couple is a big step, and finding an approach that works for both of you can take some thought. Asking certain financial questions before combining finances can help you and your significant other or another loved one decide what to do.

Here, we explore four topics to help you and your partner start the conversation before combining your finances:

This is the first, and perhaps most important, of the financial questions before combining finances. Most people don’t talk openly about the state of their bank account, except maybe with a financial professional. As relationships develop, however, it’s important to be realistic about both partners’ finances so that you are both on equal footing. This is one time when you don’t want personal finances to be too personal.

Consider sharing your credit scores with each other and find out if either of you has debt that would become the other’s responsibility once you combine your finances. Discuss each other’s personal views and goals when it comes to spending and saving. All of this can help give you a clearer view into how you may function together to manage your money. You may even learn a thing or two about your own financial approach in the process.

“Combining finances can even improve money management because it opens up the lines of communication between partners,” says Lauren Greutman, an author and founder of a personal finance blog. 

Many couples choose to have shared accounts while maintaining individual ones. If you decide to open a joint account, think about whether you just want to open a checking account, or if a shared savings account will help you reach your goals too.

With multiple accounts, it’s good to break down how each will be used. Know which accounts receive paycheck deposits, for example, and how the shared account will be funded. If a joint account is for shared bills (rent, utilities, food), decide how bills will be paid. Do both parties transfer money into the account to cover bills as needed, or is there an amount deposited automatically with each paycheck? It’s simple to move your money between your 360 Checking and 360 Performance Savings accounts whenever you need to in the Capital One app.

What about other joint expenses, like vacations? Will you fund your retirement with a joint account, or will you pay your own way? It’s best to get these questions answered before combining finances with your partner to avoid confusion or disagreements down the road.

If you choose to combine your finances and open a joint account, talk about how it will be managed and who will handle what. Setting clear responsibilities can help prevent problems later. 

Let’s say you open a joint checking account for shared bills. While you may both deposit money into the account, you could have one person make sure those bills get paid. Then the other person can check each month that the account balance is correct.

Additional rules can also help avoid arguments and impulse buys. You might think about discussing purchases when they’re over a certain dollar amount.

“My wife and I set a limit each week on how much spending money we each have for things we like to get ourselves,” says John Rampton, founder and CEO of an online digital wallet. “Giving each other an allowance means we cut out arguments on what we spend that money on.”

Talking through your finances as a couple won’t prevent every problem. But it means you’ll catch issues sooner, and you’ll know how to handle them together. If you ever come up short on bills, having a plan in place makes it easier to tackle as a team.

When money is combined, it’s important to talk openly about spending to help avoid overdrafts and make sure bills get covered. It’s also a good time to align on future financial goals together. Does your checking account charge overdraft fees? Capital One 360 Checking doesn’t, helping you hold on to more of your money.

If you notice your joint account is low on funds, sit down and go over your joint budget. See if there are areas that can be adjusted. It might mean saving where possible or increasing the amount going into the shared account. Either way, talking through the situation will help you come out ahead each month.

Now that you’ve read our guide about asking financial questions before combining finances, here are a few things to keep in mind as you move forward:

• Combining finances is a major step. Honest conversations can help you and your partner feel more confident about your shared money decisions. 

• Setting spending limits and deciding up front how each account will be used—like one for bills and one for savings—can help you stay organized and avoid conflict.

• Whether you open a joint account or keep some finances separate, set regular check-ins to review your budget, spending habits and shared financial goals so you can make updates together.

Thinking about setting up a joint account? You can open a 360 Checking or 360 Performance Savings account online in about 5 minutes.