Which option makes sense to you?

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Saying “I do” affects more than just your personal life — it also means changing the way you manage your money. After years of handling everything individually, you and your new spouse will have to figure out how to balance finances after marriage.

To be clear, this doesn’t mean you have to pack all your clothes when tying the knot. It just means you need to get on the same page and create a system that works for both of you.

The following methods and tips may help.

Common ways to combine finances after marriage

As couples marry later in life, it is more likely that you will enter the marriage with your own assets, income, and debts. When it comes to managing money with your spouse, there are three basic ways: combining all your assets and income, keeping everything separate, or using a mixed approach.

Fully integrated

Consolidating all your assets and income can be, logically, the easiest way to manage money as a couple. Rather than using individual accounts, you and your spouse join everything. Both of your paychecks sit in the same joint bank account, and all expenses come out of your shared funds.

100% joint setup makes it easy to set financial goals together as a couple and get buy-in from both people. It also levels the playing field if one spouse earns less or quits work to raise the children.

However, when couples have different attitudes and habits about money, getting on the same page can be difficult. And if one person has been burned financially in the past, this level of financial intimacy can be difficult to achieve.

Good:

Disadvantages:

Read more: Should unmarried couples have joint bank accounts?

It is completely different

The opposite approach to a fully integrated financial life keeps everything separate. In some ways, this approach is easier: You don’t have to go through the hassle of setting up new joint accounts, and you can (to some extent) continue to work as you did before you got married. If you’re a spender and your spouse is a saver, keeping separate accounts can help keep the peace.

But because you don’t jointly manage any assets, you may avoid working on important money discussions that could strengthen your relationship. Additionally, deciding who pays for what and keeping it “fair” can be stressful.

Good:

Disadvantages:

Paying for joint expenses, such as housing and groceries, can be challenging if you don’t have a joint account.
Setting and working toward shared goals requires more intent

Read more: Many couples are ditching joint bank accounts, and experts are seeing a benefit

Hybrid model

Also known as the “yours, mine, and ours” method, a consolidated financial pooling system maintains a certain level of segregation – but also involves at least one joint account.

With this strategy, you can keep your own bank accounts when you get married, but you will also open a joint account with your spouse. You can use a joint account to pay off household bills and save for shared goals. In the meantime, you can continue to use your individual accounts to spend personal money.

This setup can create a healthy combination of autonomy and shared responsibility, but it requires a lot of communication up front. You’ll need to decide how much money goes into the joint account, which can be tricky if one partner earns the other.

Good:

Disadvantages:

It can be very difficult, especially when one partner is dramatically outdoing the other
It may be necessary to adjust the system whenever costs or money change

Factors that may affect financial inclusion

If you’re thinking about how to pool your finances after marriage, consider the following:

Differences in income

How much each spouse earns can influence what you think is “fair” in a marriage. If one spouse earns more, a fully integrated approach may be the easiest way to manage. If you take a completely separate or hybrid approach, you will need to determine how much each person contributes to shared costs and goals.

Existing debt

Some couples want to deal with debt together, regardless of whose debt it is. Others see it as an individual responsibility.

For example, if one person comes into the marriage with a lot of debt while the other is working hard to become debt free, it may make sense to split things up until the debt is gone.

Spending habits

It’s not uncommon to have different spending habits than your partner. If so, maintaining some degree of financial separation may reduce tensions.

Financial trust

For someone entering a marriage with a history of financial abuse or trauma, fully integrating finances can be uncomfortable. But if you and your partner both value transparency and trust each other to do things that benefit you financially, sharing finances can strengthen your relationship.

Read more: What is financial infidelity? Why lying about money can be as bad as cheating.

Long term plans

If you and your spouse plan to have children, care for elderly parents, or leave the workforce for any reason, think about how this will affect your finances. These situations may be complicated by completely separate or mixed methods if one partner stops receiving income for a period of time.

Read more: 8 financial questions to ask your partner before considering marriage

Legal and tax considerations

Whether you pool your money or keep separate accounts, marriage brings legal and tax implications that must be considered.

For example, if you live in the community, any assets you or your spouse acquired during the marriage are generally considered jointly owned. But in equitable distribution states, assets acquired by one spouse are generally considered individually owned, unless both spouses are named as owners.

Credit is another big consideration. In some cases, both spouses may be responsible for paying the debt, regardless of who borrowed.

Finally, married couples can file taxes jointly or separately. It doesn’t matter how you manage your finances in your home; you can file jointly even if you maintain separate accounts. Filing jointly may offer additional tax savings, but there are exceptions.

Because taxes and laws vary by country and state, you may need to consult with a tax professional or attorney before proceeding.

Tips for consolidating finances after marriage

Whether you keep things separate, combine everything, or take a mixed approach, use the following tips to help you and your spouse manage your finances more effectively:

Be careful: Don’t wait until after the honeymoon to decide how you will manage money as a married couple. The sooner you start talking about it, the more time you have to make a plan that works for both of you.
Set up a regular login: No financial system (or marriage, for that matter) is flawless. No matter how you manage to manage money, you’ll likely need lessons—you’re right along the way. Schedule regular check-ins to discuss financial goals, progress, and any issues that arise.
Revisit your schedule with each major life change: The birth of a child, a job change, or receiving an inheritance may require you to change your financial plan. Don’t be afraid to readjust as needed.
Contact an expert: Even with the best of intentions, raising funds can be difficult. Don’t hesitate to contact a tax professional, financial advisor, or attorney to help you and your spouse get on the same page.