Much has been written about how finances are treated in families. Some have joint accounts, others have 3 accounts – mine, yours and ours and others just have yours and mine accounts.
Some of the more “careful” or “risk mitigating” types may look ahead and consider financial consrequences in the event of family breakups and try to structure something now to minimise issues later.
In our family, we have the “all or nothing” structure.
My wife was working in a bank when we met. She continued to work after we got married and had our second girl. A near tragic incident involving the second girl, when she was 3 months old, made us review the situation. As I was earning more, we decided that my wife would stay home whilst I would continue working.
At that time, we still had separate accounts, though I paid for all the household expenses.
When I started work overseas, she became an additional signatory to all my bank accounts, hence having powers to withdraw any amount she chose. Now all our assets are in our joint names though most of the liabilities are under my name.
This structure is one that may self destruct if there are ever irreconcilable rifts between us.
I have thought about this. But I want to give an iron clad guarantee to my wife that whatever happens there will be no significant negative impact on her or the children financially.
I think for the sacrifices my wife has made in giving up her career for the betterment of our family, the support she has given me in my business ventures, the support that she has given me in my personal life, this is well worth it.