Newlyweds and new cohabitants have some big decisions to consider.
Specifically, how to manage their finances and assets.
- Do you share everything you both have? Joint ownership across the board. Put everything in both names.
- Do you each share part of what you have? His assets and her assets in separate names, but also some joint ownership assets in both names.
- Do you share nothing you have? Strictly his and her assets in separate names.
The choices depend in part on the ages of both partners, whether either partner has children from previous relationships, risk tolerance of each partner, the relative incomes of each partner, whether either partner has substantial assets accumulated already.
There are two possible scenarios to consider: separation by choice or by death of a partner.
Last but not least …
- Prenup?
- Postnup?
Read more in this Morningstar article: Should Merged Lives Mean Merged Finances?.
