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Money worries are the top strain on couples in the UK, according to the counselling service Relate. Yet, many feel unable to talk about finances with their partners. Source: theguardian.com.
Start with Open Conversations
Early discussions about spending, saving, and debt are key to avoiding future conflict.
One effective method is for each partner to write down their preferred financial arrangement separately. Then, discuss and compromise.
These plans should be reviewed regularly—especially if income or circumstances change.
Plan Shared and Personal Spending
When moving in together, many recurring costs can be cut. For example, subscriptions like Netflix or Amazon Prime can be halved.
Some gym chains offer discounts for couples. Energy bills can also be split 50:50 or based on income.
Adding both names to utility bills means both are liable for unpaid debts—this can protect against one person’s financial missteps.
Joint Accounts: A Trust-Based Choice
Opening a joint current account is an act of serious trust. It gives your partner access to all funds, with no oversight.
If one partner has a poor credit history, the joint account could affect both of your credit files. Lenders may view both records when assessing borrowing power.
While joint accounts offer shared control, they also carry risk. A partner could overspend or misuse funds.
Alternative: A Balanced Approach
Some couples use a joint account for bills and emergencies, while keeping personal spending in individual accounts.
This gives each person access to their own funds—important in case of a breakup or financial abuse.
Pool Savings with Confidence
Digital bank Revolut offers joint savings accounts. These are ideal for shared goals like holidays.
Interest earned is typically split 50:50 for tax purposes. Couples get up to £170,000 in protection—double the standard per-person limit under FSCS.
From 1 December, the individual limit rises to £120,000, making the couple’s total protection £240,000.
Maximize Mortgage Borrowing Power
High house prices mean most couples apply for joint mortgages to access more borrowing.
Lenders assess both credit records when evaluating affordability.
Save on Insurance
Adding a partner to car insurance can reduce costs significantly.
Joint life insurance is also cheaper than two individual policies—because couples tend to live longer.
Use the Marriage Allowance
Married or civil partnership couples can benefit from the marriage allowance.
If one earns less than £12,570 a year, they can transfer up to £1,260 of their personal allowance to their partner.
This reduces the recipient’s income tax by up to £252 annually. The transfer applies only if the higher earner is a basic-rate taxpayer (except in Scotland).
Applications can be made online and go back as far as the 2021–22 tax year.
Reduce Inheritance Tax
When married or in a civil partnership, a person can leave everything to their partner without inheritance tax.
If you are not married, leaving a home to children or grandchildren may trigger tax. The threshold is £325,000 for individuals, or £500,000 if a home is passed to children.
Unused thresholds can be added to the surviving partner’s allowance when one dies.
Most pensions also pass to a spouse upon death. Non-married couples should complete a beneficiary nomination form.
These financial tools are designed to support couples, not replace professional advice. Always consult a financial advisor before major decisions.
Source: The Guardian
For more on managing money with children, see Children’s Savings Accounts.
