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How do i rebalance finances after a big promotion when our marriage has always been financially equal?

86 replies

pilii · Yesterday 17:03

My husband and I have been married for 17 years. Our incomes have always been roughly equal and grew at the same pace the whole time so we've just done a simple 50/50 split on everything and never had to think about it. We both are in mid 40s, Also we both earns ok 6 digits

That's about to change. I got a promotion starting this September, and I'll be earning about double what he makes. We have 3 kids together, and I'm trying to figure out how to fairly restructure things now that our incomes are so lopsided

A few things I'm stuck on
Shared bills/mortgage stick with 50/50, or switch to proportional (I'd cover ~2/3)?

Savings/investing should contributions to joint savings also scale with income, or stay equal?

Personal allowance should our individual "fun money" also be proportional, or does it make more sense to keep that equal so neither of us feels like the higher earner gets to spend more freely?

Kids' expenses (school, activities, etc.) proportional like the rest, or split evenly since they're both our kids regardless of who earns what? They are all teenagers

We've never had to navigate an income gap before, so this is genuinely new territory for us after 17 years of things being simple. Anyone been through a similar shift especially later in a marriage rather than starting out unequal What worked and what caused friction

OP posts:
TVDinnerandwine · Yesterday 21:25

Mylovelygreendress · Yesterday 19:18

And what if you think your marriage is fine but one day he not only ups and leaves you with 3 young DC but empties all bank accounts ?
Happily remarried for 30+ years and separate finances .

If you have your money arranged correctly, he wouldn’t be able to

TVDinnerandwine · Yesterday 21:27

Exhaustedbones · Yesterday 19:20

Most people who go on about 'family money' and 'one pot' don't seem to work. Funny that 🥴

We have one pot and I out earn my DH. I couldn’t care less

Ineffable23 · Yesterday 21:32

WhistPie · Yesterday 19:42

At your level of salary, it would be sensible to put the full 60k pa allowance into your pension, and make sure you've used the full allowance for the previous 2 years too. With a pay rise of 150k, you won't notice it's gone, and it's tax efficient.

I don't think she'll even have £60k of allowance any more will she? I think she's above the threshold where you lose the allowance. (One of my pet tax system hates, and I am in no way anti-tax.)

BlueRedCat · Yesterday 21:35

MidnightMeltdown · Yesterday 20:45

Joint back accounts are extremely unwise in this day and age. All too often, men meet someone else and fuck off, emptying the bank account. Of course nobody ever thinks that it will be their DH.

You should always have your own bank account.

you don’t have all your money in joint accounts to have joint money. We have 1 joint account for general day to day stuff but the rest is scattered across accounts in both our names. We both have access to the balances of all the accounts and regularly discuss maximising interest and tax efficiency.

notacooldad · Yesterday 21:36

Gor the last 36 years we have had an account where both our wages go in. Over the years he has earned more than me, other times I've earned more, then I've been on mat leave and so on. However none of it matters in regard to who puts what in. Once the money is there and bills, savings and investments have been sorted its a free for all eith the money!

You are supposed to be a unit do it doesnt seem fair to move the goal posts just because you've got a great promotion.
Congratulations btw on that promotion!

JustMeSimply · Yesterday 21:47

In a good marriage everything is pooled and why would you not be financially independent unless your not good with finances. My dh can pop off buy a car and me a horse book a holiday from the joint account if it's there. The most that will be said is I'm thinking of doing and that's it..Bill money is transferred for all direct debits once a month and our pensions and we do very well this way despite not earning anywhere near the amounts here lol..It's all trust and love and good communication

WhistPie · Yesterday 22:17

Ineffable23 · Yesterday 21:32

I don't think she'll even have £60k of allowance any more will she? I think she's above the threshold where you lose the allowance. (One of my pet tax system hates, and I am in no way anti-tax.)

You're right, it's 40k at 300k salary - a pensions adviser would get it right! But her previous 2 years would have been at the 60k but again, a pensions adviser would be the one to make sure it was all being used

Pinkissmart · Yesterday 22:24

VeryQuaintIrene · Yesterday 17:13

This happened to me and MrsIrene. I was the higher earner for a long time, but she's in a more marketable field so now earns about half as much again as I do (we are also 6 digits, me only just, she about $150K). She also has to travel for work (4 hours away by car, when she's not WFH) so she now spends more of her money on getting things done in the house that she doesn't have time for, and bought a new and expensive electric car that took ages to pay off. It definitely took me a bit of time to get my head around no longer being the higher earner and I didn't like it at first but I am now OK with it, and she is very generous with occasionally paying extra for us. We have separate money but a joint account into which we put the same amount. I think if you earn enough anyway, which I do, the disparity is OK - I would imagine it would be hard if one person was well paid and the other wasn't.

What stuff does she pay for that SHE doesn’t have time to do?

VeryQuaintIrene · Yesterday 22:36

Pinkissmart · Yesterday 22:24

What stuff does she pay for that SHE doesn’t have time to do?

Care of the garden, which is hers and hers alone (apart from my mowing the grass.)

Yogafiend · Today 01:14

MidnightMeltdown · Yesterday 20:45

Joint back accounts are extremely unwise in this day and age. All too often, men meet someone else and fuck off, emptying the bank account. Of course nobody ever thinks that it will be their DH.

You should always have your own bank account.

I have my own bank account. But our money is pooled.

user1492757084 · Today 01:23

I would keep everything 50/50 but put your excess into investments after seeking advice about how best to grow family wealth.
It is the perfect time to review finances.

Extra house, savings for kids, pensions etc spread between yourself and DH.
You know and trust DH, I assume.

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