'I've Got The Netflix Bill And You Pay The Doctor' — Couples In These Business-Type Relationships Aren't As Happy According To Experts

Many people believe in keeping their finances separate, even after tying the knot. Conversely, other couples go "all in" on combining their finances. 

There's no right or wrong approach, so you should make a final determination based on your circumstances and beliefs. At the same time, it never hurts to take advice — and in this case that comes in the form of research from the Indiana University Kelley School of Business.

The overarching theme is that married couples who merge finances may be happier and stay together longer than those who take the opposite approach.

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"When we surveyed people of varying relationship lengths, those who had merged accounts reported higher levels of communality within their marriage compared to people with separate accounts or even those who partially merged their finances," said Jenny Olson, assistant professor of marketing at Kelley School of Business. "They frequently told us they felt more like they were ‘in this together.'"

The potential benefits of combining finances after marriage run deep. These include:

• Strengthened financial unity: Facilitating a shared approach to budgeting, saving and investing for the future
• Simplified management of household expenses: Allowing for more efficient tracking of spending and savings in a joint account
• Enhanced ability to build a strong credit history together: Potentially leading to better loan conditions and interest rates
• Greater financial transparency between partners: Fostering trust and open communication about financial goals and challenges
• Increased efficiency in achieving shared financial objectives: This includes things such as buying a home or planning for retirement

"This is the best evidence that we have to date for a question that shapes couples' futures; and the fact that we observe these meaningful shifts over two years, I think it's a pretty powerful testament to the benefits of merging," Olson said. "On average, merging should warrant a conversation with your partner, given the effects that we're seeing here."

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How Accurate Is The Data?

Olson and her team enlisted 230 couples, all either engaged or newlywed, and monitored them for two years as they embarked on marriage. Each couple initially maintained separate bank accounts and agreed to the possibility of altering their financial setups. It was everyone’s first marriage.

The couples were divided into groups: One continued using separate accounts, another was instructed to merge their finances into a joint account and a third group chose their approach.

Two years into the study, those who had merged their accounts into one reported significantly higher relationship satisfaction. 

Olson attributes this to the joint accounts fostering better alignment on financial goals, increased transparency and a shared understanding of the marriage’s financial aspects.

Olson has a theory on why couples with separate accounts may not be as happy as those with combined finances. 

"It's ‘I help you because you're going to help me later,'" she said. "They're prepaying for later favors, and that's tit-for-tat, which we see a bit more with separate accounts. It's ‘I've got the Netflix bill and you pay the doctor.' … They're not working together like those with joint accounts — who have the same pool of money — and that's more common in business-type relationships."

Consulting a financial adviser can help you better understand how to manage your finances as part of a married couple. A professional can offer personalized advice to help you decide whether you should keep your finances separate or combine them. 

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*This information is not financial advice, and personalized guidance from a financial adviser is recommended for making well-informed decisions.

Chris Bibey has written about personal finance and investment for the past 15 years in a variety of publications and for a variety of financial companies. He is not a licensed financial adviser, and the content herein is for information purposes only and is not, and does not constitute or intend to constitute, investment advice or any investment service. While Bibey believes the information contained herein is reliable and derived from reliable sources, there is no representation, warranty or undertaking, stated or implied, as to the accuracy or completeness of the information.