Combining Finances: Tips for 40+ Couples

Summary: Marriage is an enormous commitment that will change your life; it could also change your finances in unexpected ways. If you recently got married after age 40, this step-by-step guide will help you and your spouse agree on how to manage your money.

As a couple, where do you begin when you decide to combine your finances? What is the first step? The answer: transparency.

In the United States, about 40% of those in relationships have hidden financial information from their significant other. The most common secret is spending too much. In fact, 33% of people admit they’ve spent more money than their partner would approve of.¹

Financial infidelity can create trouble down the line. Also, knowing your partner’s financial situation makes it easier to plan. Before you and your spouse plan your financial goals, it is important that you list your assets and liabilities. Each partner should know about the other’s bank account balance, stocks, real estate investments, and any other assets.

Check your FICO scores

Checking your current credit score is another important initial step. Some couples in their 40s may have plans to buy a home. Remember that mortgage lenders require that you have a minimum credit score to take out a loan. While a 620-FICO score may be enough, most lenders want you to have a 680-credit score or higher.

Your credit score affects loan interest rates, no matter your financial goals. Improving your credit should be a financial priority if you or your spouse have a low score. Couples with top-tier credit, however, simply need to continue their current practices.

Address previous financial commitments

Many couples who get married in their 40s also have other financial commitments, such as alimony and/or child support from a previous marriage or student loans to pay off. Whatever the case, it’s crucial for both partners to be honest about any preexisting financial obligations when entering a relationship.

Set financial goals

Setting financial goals is simpler once you understand your combined financial picture. Each couple should set three types of goals:

• Immediate goals (1-3 years): Prioritize immediate goals, like paying off bills or saving enough money for a down payment on a home. These steps will motivate you and your spouse to take charge of your finances.
• Mid-term goals (3-5 years): Creating mid-term goals will help you prepare for unexpected expenses. You can also map out your savings goals for the next 3 to 5 years, putting you and your spouse in a better position to set reasonable but challenging goals.
• Long-term goals (5+ years): Finally, long-term goals allow you to discern what retirement will look like. These goals help you stay on track even after you’ve hit the short-term ones.

To share or not to share accounts?

Now that you have set financial goals with your spouse, it’s time to keep yourselves accountable. A joint savings account may be ideal for you, especially if you want to contribute to a shared goal, such as purchasing a home together or taking a family vacation. With a shared account, you and your spouse can encourage each other to make smart budgeting decisions.

Some modern couples opt to not combine finances at all or choose a hybrid approach. Each person has a personal bank account and contributes a percentage of income to the joint savings account. Spouses can decide what their goals are and what works best for their family when deciding how they want to navigate their finances, whether it’s combining accounts, keeping them separate or taking the hybrid approach.

Create a budget

Once you and your spouse are familiar with your joint assets and liabilities, it’s time to create a budget so you can manage costs effectively. This is the stage where you both clarify how to allocate your money. First, decide on a monthly investment figure; use any leftover money for other expenses.

Unlike essentials like food and housing, you don’t have to keep paying for things you don’t really need. For instance, you may have a video streaming subscription that you rarely use. Canceling the subscription and removing it from your budget can save you a lot of money in the long run.

Of course, slashing a single expense won’t fix your finances overnight. But reviewing previous credit card statements may reveal unnecessary expenses that you don’t have to pay anymore. This would help you not only pay off any credit card debt, but also free up your budget for more investing. The more money you invest, the sooner you can achieve your long-term financial goals.

Align your finances

Newly married couples should review and update their beneficiaries, as many will still list former spouses or parents. If children from prior relationships are involved, consider life insurance to provide for them financially should something happen to you. Estate planning documents like wills or trusts are also crucial to help ensure any assets or finances left behind are managed according to your wishes.

Be sure to discuss your individual risk tolerances (which may differ from your spouse’s) and work with a financial professional to review overall asset allocation against your individual and now-combined tolerance for risk. A financial professional can also help you and your spouse understand your current financial situation, how combining assets will affect your retirement outlook, make any necessary adjustments, and assist with setting new financial goals as a couple, if needed.

Plan for retirement

If you set long-term financial goals before your career is over, you have a greater chance of a successful retirement, research shows. In fact, a recent study shows that 74% of people who plan for retirement have higher retirement savings and are satisfied with their retirement income.²

Start planning with your spouse what lifestyle you both want at the end of your professional lives. For instance, your spouse may want to travel the world upon retirement, while you may want a more modest lifestyle.

Some couples may realize after reviewing their long-term goals, they need additional retirement income. In that case, they may want to pick up a side hustle or part-time work or diversify their income streams. A side hustle could turn into a full-time second career.

Discuss money goals

Sound financial planning can bring more stability to your marriage. Map out your progress and be supportive of one another. Regular check-ins can also boost accountability and minimize the amount of unnecessary expenses. Spouses can also share ideas, such as which side hustles to pursue and ways they can trim their expenses.

Write your thoughts in a money journal

Journaling is a great way to track your progress towards your financial goals and figure out what to do next. Plus, you will enjoy re-reading past journal entries many years from now.

Combining finances can help you and your spouse reach your financial goals if you do it correctly. Transparency and communication are key. Working with your spouse and approaching financial goals as a team can lead to a brighter future for both of you.

If you and your spouse are looking for financial professionals to assist you on this journey, you can turn to Mutual of Omaha. Our team is happy to help you map out your retirement goals and guide you on the right path.

You can speak with a financial professional today.

Frequently Asked Questions

Q1: Is it better for couples to combine finances or keep them separate?

Whatever works best for your situation is the right approach. You can combine accounts, keep them separate, or do both. Remember, past relationship issues might make this a sensitive topic for some, so please discuss it with your spouse and decide together based on each other’s comfort level.

Q2: What are the disadvantages of a joint bank account?

Joint bank accounts can create privacy issues, since each spouse can see the other’s transactions. In the event of marital issues, one spouse can move funds from the joint account into their personal bank account. Typically, joint account holders share responsibility for all debts charged to the account. This could cause problems if one partner spends too much, leading to more debt for both.

Q3: Will a joint bank account hurt your credit score?

No. Opening a joint bank account will not hurt your credit score. You and your spouse can create a joint bank account and stay on top of each other’s finances without losing points on your credit score. In fact, it may play to your advantage to open a joint bank account before applying for a loan.

Disclosures:

Registered Representatives offer securities through Mutual of Omaha Investor Services, Inc., Member FINRA/SIPC. Investment Advisor Representatives offer advisory services through Mutual of Omaha Investor Services, Inc.

Mutual of Omaha and its representatives do not provide tax and/or legal advice, and the information provided herein is general in nature and should not be considered tax and/or legal advice.

Not all Mutual of Omaha agents are registered representatives or financial advisors.

All investing involves risk, including the possible loss of principal and there can be no assurance that any investment strategy will be successful.

Sources:

1. Bankrate, Survey: 2 in 5 Americans in a relationship have kept a financial secret from their partner, January 2025
2. SVIA, Survey Shows Strong Link Between Planning and Retirement Readiness. 6 Feb. 2025.

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