Episode 08-Dealing with Finances in a blended family

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Dealing with finances is an issue that every couple must face.  However, it is much more difficult in a blended family.  There are usually more issues in a blended family, such as child support, separate debts and assets, and financial involvements with exes.

 

The issue of finances is best discussed early on in the relationship to avoid pitfalls in the future.  Some topics to discuss are

• handling of income

• handling of expenses

• handling of bank accounts

• future financial planning

 

You must decide if you are sharing your income, and a lot of that will depend on how much you each make and what each of your financial obligations are.

 

Expenses are a much more tricky topic.  You both need to figure out who is handling what expenses.  How will you divide home expenses and debt? Who is going to pay the bills? Are you going to take care of your previous debts together or handle that separately?  These are all issues you must face and talk about together.  Child expenses should mostly be shared, but again, some of this depends on ages of children and what their needs are.

 

There are three options on how to handle the bank accounts.  You can have completely separate accounts if you both want to keep everything separate.  You will need to decide who is paying for what if you do this.  Another option is to have one pooled account that all of your money goes in and is totally shared.  Last you can decide to have three accounts, each your own account and then one joint account.  Again, here you would need to decide who is paying what and how much you will each contribute into the joint account.

 

Future financial planning includes things like deciding whether to have a prenuptial agreement and dealing with life insurance.

 

All finances in the relationship should be discussed openly and honestly to insure success in the future.

 

Comment on the show notes if you have any advice or tips you want to share!

 

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