Combining Finances Before Marriage: Is It Wise?
Any legal and financial advisor Owings Mill MD couples turn to may tell you that some couples naturally want to combine their finances as a next step in their relationship. Combined finances may help you budget for your expenses and help you purchase a home together. However, if you combine finances before marriage, you may run into trouble. Here are four risks of combining finances before marriage.
1. Spending May Be a Source of Arguments
Having a joint account may mean that you both need to agree on how you spend the money. If one person spends it on items without their partner’s knowledge, it could result in the dangerous situation of not being able to pay the bills. Your legal and financial advisor Owings Mill MD residents trust may be able to help you avoid this pitfall.
If you combine finances, remember the other person has access to your money so you may have little say over how it’s spent. Your legal and financial advisor in Owings Mill MD may warn you that your soon-to-be spouse could drain your account and run.
2. You’re Financially Linked
Yes, marriage may affect your credit rating anyway. However, using separate bank accounts keeps the two of you financially separate to a certain extent. Any Owings Mill MD legal and financial advisor may tell you that once you combine bank accounts, you’re financially linked. If one of you has a healthy credit score and one of you has a poor credit score, the poor score may bring the healthy score down.
An legal and financial advisor Owings Mill MD has to offer may advise that before you open a joint account, you should be aware of each other’s credit score and history.
3. You May Open Yourself to Financial Manipulation
You may already know that discussions over finances could lead to arguments. However, there may be more at stake than you initially realize. When you agree to combine your finances, you may open yourself up to financial manipulation or financial dependency.
It’s important to think about whether or not you are comfortable being financially dependant on your partner or spouse. Some couples prefer to stay financially independent. It may be in your best interest to have a financial account that stays separate, especially while you are in the early stages of your relationship. When you feel comfortable to join your partner’s account, an advisor could help you so do.
4. There May Be Confusion at the Bank
A legal and financial advisor Owings Mill MD offers may tell you that combining finances before marriage can lead to confusion at the bank. Why? Some banks may assume that you are married and have the same last name. This may cause the bank to enter information in wrong when setting up joint accounts. This may lead to future problems with credit history, scores, and financial accounts. If you wish to avoid this confusion, it may be wise to stay financially separate from your partner.
Some of these issues may occur before or during marriage, so it may be wise to discuss financial issues with your partner before saying “I do.” No matter how you wish to proceed, it may be in your best interest to discuss your options with a legal and financial advisor Owings Mill MD residents turn to for help.