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Finding the Right Financial Fit: How Do Couples Split Finances?

Admin • April 19, 2024

Being in a devoted relationship means blending your lives in more ways than one, not just emotionally, but also navigating complex processes such as combining your finances. How do you and your partner want to manage money together? There’s no one-size-fits-all solution, but most modern couples settle on one of a few common approaches to sharing or combining finances.

Deciding how to handle money as a couple is a personal decision without any objectively “right” answer. It depends on your values, goals, circumstances, and what works best for your situation. The most important things are to communicate openly and honestly about it, get on the same page, and revisit the topic regularly as your life evolves.

How Do Couples Split Finances?

If you’re wondering how to manage money as a couple, check out five common ways modern couples are structuring their finances:

1. Merging Finances Completely 

Some couples go all-in and completely combine their finances into one joint pot. They share bank accounts, investments, assets, and debts equally. All income goes into the joint accounts, and all expenses are paid out of the joint accounts. There is no delineation of “my money” and “your money” — it is 100% “our money.”

This is the most traditional approach couples take to their finances. A 2022 study by Creditcards.com found that 43% of couples who are married or living together combine their money. 

The combined approach promotes full financial partnership and can simplify money management. However, it does require a very high level of mutual trust, communication, and alignment on financial values and goals. It may be an easier transition for married couples.

2. Keeping Finances Separate 

At the other end of the spectrum, some couples keep their finances separate throughout the relationship. They maintain individual bank accounts, investment accounts, etc., and have no jointly owned accounts or assets. Income and expenses are accounted for individually. The same Creditcards.com poll found that 23% of couples have completely separate accounts.

Keeping finances totally separate allows each partner to maintain their full financial autonomy and avoids the intermingling of assets. It can work well for couples with complex financial situations or very different spending habits/philosophies. However, it may not allow for easy sharing of expenses, saving towards joint goals, or a true partnership mindset around money.

3. Combining Some Finances and Keeping Others Separate 

Most couples (57%) land somewhere in the middle and partially combine their finances. Common setups include:

  • Maintaining separate personal checking/saving accounts but also a joint account for household expenses
  • Keeping investment/retirement accounts separate but sharing a joint checking account
  • Paying specific bills jointly and other bills individually

This hybrid model provides the benefits of both combined and separate finances. It allows for shared financial responsibility in certain areas while maintaining some individual financial autonomy in others. The challenge is agreeing on what accounts/expenses should be joint vs. individual.

4. Proportional Splitting Based on Income 

When combining finances jointly, some couples split shared expenses proportionally based on their individual incomes rather than an equal 50/50 split. If one partner earns significantly more income, they may pay a larger percentage of joint expenses while the lower-earning partner pays a smaller percentage.

This approach aims to balance financial burden fairly based on means. However, it requires detailed tracking of expenses and can create a dynamic of one partner paying for more (or being financially dependent). Some couples adjust the proportions if partners have a significant income disparity.

5. Living Off One Income and Saving/Investing the Other 

Another approach for couples with two incomes is having one partner’s income pay for all living expenses while the other partner’s income is saved/invested in full. This potentially allows couples to supercharge savings and wealth-building.

However, this method requires that one income truly cover 100% of expenses. It may foster imbalance if one partner controls all spending while the other is relegated to no discretionary spending. Couples who merge incomes this way often revisit and adjust the arrangement over time.

How Should Unmarried Couples Share Finances?

Unmarried couples face a unique set of considerations regarding money matters. Here are some key tips to navigate shared finances without the legal protections of marriage:

  1. Open Communication is King (and Queen): This goes double for unmarried couples. Discuss financial goals, debt, spending habits, and what “fairness” means to each of you.
  2. Consider a Cohabitation Agreement: This legal document outlines how you’ll handle shared assets and debts if you break up. It might not be the most romantic conversation, but it protects both of you financially.
  3. Think “Shared Expenses,” Not “Joint Everything”: Maybe a joint account works for bills and groceries, while separate accounts handle personal spending. This allows for teamwork on shared goals while maintaining some financial independence.
  4. The Percentage Play Can Be Your Ally: If one partner earns significantly more, contributing a percentage of income to a joint account can ensure fairness — for instance, 60%/40% based on earnings.
  5. Have an Exit Strategy: As unpleasant as it is, discuss a backup plan for separating your finances cleanly if you break up down the road.
  6. Estate Planning for Unforeseen Circumstances: Without marriage protections, unmarried partners aren’t automatically entitled to inherit assets or make medical decisions for each other. Consider wills, power of attorney documents, and beneficiary designations for retirement accounts and life insurance.
  7. Seek Professional Guidance: A financial advisor can help you develop a personalized plan that considers your income disparity, financial goals, and risk tolerance.

Communication is Key: 5 Tips for Managing Money as a Couple

Ultimately, every relationship is unique, and there is no universal “best” approach to how modern couples share or merge finances. Open communication and finding the right balance for your situation is critical. Many couples also evolve their financial arrangements over time as life circumstances change.

  1. Set Regular Money Dates: Schedule dedicated times to discuss finances, review budgets, and set goals together.
  2. Be Transparent: Share your financial history, including debts, assets, and spending habits , to build trust and avoid surprises.
  3. Define Roles and Responsibilities: Clearly outline each partner’s financial responsibilities, from bill payments to long-term investments.
  4. Compromise: Understand that financial priorities may differ, and be willing to compromise to find common ground.
  5. Seek Professional Guidance: Consult a financial advisor or counselor to help navigate complex financial matters and provide objective advice.

The most important things are to find common ground with your partner, trust each other, align your financial goals, avoid keeping money secrets, and revisit your system regularly. Money is one of the most common sources of relationship strife — but it doesn’t have to be when couples work as a team. How you manage money together is up to you as a couple.

Seeking Expert Guidance? Five Pine Wealth is Here to Help!

Managing finances as a couple can be a breeze with the right tools and strategies. At Five Pine Wealth Management , our team is here to help you develop a personalized plan that caters to your unique financial goals and relationship dynamic. 

Do you need help deciding how to manage your finances together? Email or give us a call at 877.333.1015 to schedule a meeting. Let’s craft the best plan for managing your money as a couple!

The Best Long-Term Investment Strategy? Stay Invested, Stay Calm

June 20, 2025
When markets are calm, investing can feel easy. You contribute regularly, watch your portfolio grow, and start picturing that future vacation home or early retirement. But when markets get volatile, everything changes. Suddenly, headlines are full of dire warnings. Account balances fluctuate. And the urge to do something can feel overwhelming. At Five Pine Wealth Management , we understand how emotional investing can become during periods of market uncertainty. One of the most important things we do as fiduciary financial planners is to help our clients stay grounded when the market gets choppy. Let’s walk you through how we approach investment risk management and why having a clear, disciplined philosophy matters most when volatility strikes. Our Philosophy: Think Long-Term, Not Next Week When markets are moving fast, it is easy to think that the “best long-term investment strategy” must involve taking action to avoid losses or chase gains. The reality is usually the opposite. Reacting to market noise can often do more harm than good. In fact, one of the greatest risks to long-term returns is making emotional decisions in response to short-term events. We coach our clients to stay focused on their long-term financial plans and goals. Volatility is a feature of markets, not a flaw. By designing portfolios with realistic expectations for ups and downs, we help clients stay invested through all market environments. Here is what this looks like in practice: We use broadly diversified portfolios built around low-cost ETFs. We focus on asset allocation aligned with your time horizon, goals, and risk tolerance. We do not chase trends or attempt to time the market. We regularly review and rebalance portfolios based on your financial plan, not headlines. In short, your portfolio is designed to ride out volatility, not avoid it entirely. Fiduciary Financial Planning: Advice in Your Best Interest There is a great deal of noise in the financial world, particularly during turbulent market conditions. One of the most significant ways we help cut through it is by being fiduciary financial planners. That means we are legally and ethically obligated to act in your best interest at all times. We are also fee-only advisors. We do not receive commissions for recommending one investment over another. Our primary agenda is to help you reach your goals. During market volatility, this matters more than ever. Too many investors fall prey to sales pitches disguised as “solutions” to market risk. We focus on education and long-term planning rather than quick fixes. Being a fiduciary allows us to focus on what serves you best: Keeping you aligned with your personal goals and values Helping you tune out market noise and media hype Offering sound, research-backed guidance without conflicts of interest Your Coach Through Emotional Market Cycles One of our most important roles as financial planners is helping clients manage the psychological side of investing. It is one thing to know, intellectually, that markets will recover over time. It is another thing to watch your portfolio drop 15% and not feel anxious. Market downturns create powerful emotions. Fear. Doubt. Sometimes, even panic. As humans, our instinct is to take action to relieve those feelings, even when the logical course is to stay invested. That is where we come in. We help coach clients through these moments so they can avoid costly mistakes like: Selling during a downturn and locking in losses Chasing the next hot trend during a rebound Over-concentration in “safe” assets out of fear We remind clients that volatility is a normal part of the market. Markets have experienced recessions, wars, pandemics, and political turmoil before. They will again. Over time, markets have historically rewarded patient investors who stayed the course. When you work with us, you gain a trusted partner who is here to talk through your concerns, offer perspective, and help you make decisions that serve your long-term goals. Why Staying the Course Actually Works It may seem counterintuitive, but reducing activity during market volatility often yields better outcomes. Consider this: From 1999 through 2018, if an investor missed just the 10 best days in the S&P 500, their overall return would have been cut nearly in half . Many of the best market days happen very close to the worst ones. Trying to time the market is a challenging task, even for seasoned professionals. By maintaining a disciplined investment approach and staying fully invested, you ensure that you are there for both the recoveries and the long-term growth that markets provide. Our role is to help you build a portfolio designed for precisely this kind of staying power. We structure your investment mix to help you weather market cycles without having to guess what will happen next. Educating Clients About Normal Market Cycles Another key aspect of fiduciary financial planning is helping clients understand what is “normal” in the market. Volatility is not a sign that something is broken. It is a natural part of how markets function. In fact, without volatility, markets would not offer the returns that make long-term investing so powerful. We work with clients to help them see: Why some years will be down, but others will be very strong Why trying to avoid all losses is neither realistic nor necessary How staying invested through cycles often leads to far better outcomes than jumping in and out of the market Perspective is everything . The more you understand market behavior, the less likely you are to make emotional decisions during downturns. Different Stages, Same Principles Our approach also adapts to the varying needs of clients at different stages of their financial journey. For clients in their 40s to 60s: We may focus on prudently preserving and growing wealth. We help manage sequence-of-returns risk as you approach retirement. We may emphasize income planning and portfolio sustainability. We ensure that your investment mix aligns with your evolving goals and risk tolerance. For clients in their 30s: We provide education about typical market cycles (especially if this is their first experience with volatility). We coach clients to take advantage of their longer time horizons. We help younger investors see downturns as buying opportunities, not threats. In all cases, we are committed to helping clients invest with confidence, regardless of the headlines. Ready to Build a More Resilient Investment Strategy? Market volatility will always be part of investing, but it doesn't have to derail your financial goals. As your trusted financial advisor Coeur d'Alene team, we're here to help you navigate market uncertainty with confidence through our comprehensive financial planning approach. Contact Five Pine Wealth Management today to discuss how our investment philosophy and comprehensive financial planning approach can help you navigate market uncertainty with confidence. To see how we can help you support your financial goals, send us an email or call us at 877.333.1015.  Whether you're looking to preserve the wealth you've already accumulated or build a foundation for long-term growth, our team has the experience and commitment to help you stay focused on what matters most: achieving your financial goals.

From Full House to Financial Freedom: Smart Money Moves for Empty Nesters

May 23, 2025
The day your last child leaves home hits differently. It’s not just about the quiet hallways or fewer groceries in the cart. It’s the moment you realize that the life you’ve known for 20+ years is evolving into something new. For many, that change is deeply emotional. But it’s also a golden opportunity. At Five Pine Wealth Management, we work with parents who are entering this new season of life. Maybe you’re celebrating. Perhaps you’re feeling uncertain. Likely, you’re feeling a mix of both. This new chapter comes with financial freedom and decisions to match wherever you land. Let’s explore the smart financial moves you can make as empty nesters. Empty Nesters: A New Financial Season Meet Rob and Dana. After 25 years of raising three kids, their youngest finally left for college last fall. Their house, once bustling with backpacks, soccer cleats, and half-eaten cereal bowls, suddenly felt oversized and eerily quiet. They weren’t used to grocery bills being cut in half or weekends without games and activities. But what really surprised them? Just how much less money was going out each month. They came to us with a familiar feeling: a mix of excitement and uncertainty. "We think we're in a good place," Dana said. "But are we doing what we should be doing?" This is where a financial check-in becomes vital. With fewer day-to-day expenses and more flexibility, this is a time to refocus your finances. Here’s where to focus: Revisit your monthly budget. Your spending needs have probably changed. Without dependents at home, you may find new flexibility. Redirect those dollars toward long-term goals. Refresh your financial goals. That dream trip to Italy or the kitchen renovation you’ve put off? Let’s pencil it in, but also ensure your retirement accounts are getting the love they need. Update your estate plan. Now that the kids are young adults, your wills, healthcare directives, and beneficiaries may need adjusting. Freedom looks different for everyone, but for many, it starts with clarity. Pre-Retirement Planning: Your Next Big Financial Milestone For most empty nesters, retirement is no longer a distant concept—it’s getting real. Pre-retirement planning becomes a critical focus, especially in your late 40s to mid-60s. This is often the highest-earning period of your life and the sweet spot for pre-retirement planning. Here’s what we help our clients prioritize: Maximizing retirement contributions : As an empty nester, your cash flow could increase by 12% or more . Now’s the time to supercharge your 401(k), IRA, or other investment accounts with that extra cash. If you’re 50 or older, take advantage of catch-up contributions. Evaluating your risk exposure : Is your portfolio still aligned with your risk tolerance and timeline? Consider your tax strategy: With fewer deductions (like kids at home) and possibly a high-earning year, you may want to explore Roth conversions, charitable giving, or other tax-aware strategies. Running retirement projections : We help clients answer big-picture questions like: When can I retire? Will I have enough? What lifestyle can I realistically support? These aren’t always easy questions, but they’re essential. Planning for healthcare : Don’t wait until 65 to think about Medicare. Explore long-term care insurance and out-of-pocket expectations now. Rob and Dana sat down with us to run a retirement analysis. With only 8 years until Rob planned to retire, we helped them rebalance their portfolio to reduce risk, evaluate their pension and Social Security options, and make a plan to pay off their mortgage early. The result? They now have a clear retirement date and peace of mind. Should I Downsize My Home? One of the most common questions we get from empty nesters is, “Should I downsize my home?” It’s not just a financial question. It’s an emotional one, too. That house holds birthday parties, graduation photos on the stairs, and a dent in the drywall from a wild game of indoor tag. But it may also hold higher property taxes, more space than you use, and maintenance costs that don’t serve your current lifestyle. When deciding whether to downsize, we walk clients through: Total cost of ownership : What are you paying for the space? Emotional readiness : Are you ready to let go of the home? What would moving free up? : Cash for retirement? A move to your dream location? Family needs : Will your kids (or grandkids) be visiting regularly? Would a smaller home still support that? Downsizing doesn’t always mean moving into a tiny condo. Sometimes it means relocating to a one-level home with less yard or trading square footage for a better lifestyle. For Rob and Dana, downsizing meant moving to a townhome closer to their daughter and walkable to their favorite coffee shop, all while cutting their housing costs by nearly 35%. Give Yourself Permission to Dream Again One of our favorite things about working with empty nesters is helping them rediscover what they want. For years, life revolved around the kids. College tours. Dance recitals. Saturday mornings spent on the soccer sidelines. You were investing in their future. Now, it’s time to invest in yours. That might mean: Launching the business you put on hold Traveling during off-peak seasons (because you can!) Picking up a new hobby or volunteering more Creating a legacy through charitable giving or a family foundation Whatever it is, we want to help you align your money with your vision. Ready to Rethink the Next Chapter? This stage of life is full of opportunities, but it can also raise big questions. The good news is you don’t have to figure it all out on your own. Whether you're considering downsizing, exploring early retirement, or just want to know you’re on the right path, Five Pine Wealth Management is here to help you plan wisely, invest intentionally, and live fully.  Take advantage of this pivotal financial moment. Call (877.333.1015) or email us today to schedule your empty nester strategy session. The empty nest doesn't have to feel empty. It can be the launch pad for your next chapter of financial success.