4 Signs You Should Keep Your Finances Separate From Your Partner’s
Written by
Cindy Lamothe
Edited by
Amber Barkley
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
If you’re in a long-term relationship, merging your finances seems like an inevitable step. There are many good reasons for this, like sharing expenses or building more transparency between partners.
But that may not be the case for every couple, and having a single bank account is a decision that shouldn’t be taken lightly.
Below are some of the top signs you should keep your finances separate from your partner’s.
Variability in Spending Habits
“When two people come together in a relationship, they bring their unique financial habits to the table,” said Paul Daidone, MD, FASAM and medical director at True Self Recovery.
If one partner is a saver who thrives on budgeting and penny-pinching, while the other enjoys spending on luxury items or spontaneous purchases, he said this mismatch can create financial friction. “Over time, these differences can lead to tension, resentment and even conflict.”
By maintaining separate finances, Daidone explained, each partner retains control over their spending, allowing them to manage their money according to their individual comfort levels and priorities.
“This autonomy can reduce stress and arguments related to financial management and encourage a healthier relationship dynamic,” he said.
Previous Financial Issues
Trust is foundational in any relationship, according to Daidone, but past financial problems can complicate it. “If one partner has a history of financial instability — perhaps due to bankruptcy, overwhelming debt or poor credit — this could pose a risk to the other partner’s financial health.”
Keeping finances separate in such cases, he said, can help protect the partner who is more financially stable.
“It ensures that their financial standing and credit score remain uncompromised, which is essential for future financial endeavors like purchasing a home or investing,” he explained.
Additionally, separate finances allow the partner with previous issues to work on improving their financial habits independently.
Individual Assets To Protect
“In relationships where there is a significant imbalance in assets, or when one or both partners have children from previous relationships, protecting those assets becomes crucial,” said Daidone.
By keeping finances separate, he said partners can safeguard their individual assets and ensure they are distributed according to their wishes, such as through wills or trusts. This separation can provide peace of mind, knowing that their financial interests and those of their children or dependents are protected.
“It also reduces potential conflicts over inheritance and asset distribution in the event of separation or unforeseen circumstances,” he added.
Early in the Relationship
“New relationships are exciting but unpredictable,” Daidone said. “During the initial stages, both partners are still learning about each other’s values, habits and life goals — including financial ones.”
Maintaining financial independence during this period, he explained, allows each partner to understand the other’s approach to money management without the pressure of shared financial responsibilities.
“It provides the space needed to discuss financial goals, spending habits and future plans candidly,” he said. “Once both partners are confident in their understanding and alignment of financial objectives, they can then decide how to approach joint financial commitments.”
More From GOBankingRates
