With people often coming to serious coupledom later in life now, and financial independence likely being prized by both parties, it can no longer be assumed that everything will be shared. Segregating your affairs may have significant downsides, however.
“More couples today have their own assets and income and when embarking on a journey for financial planning, may choose to take this advice separately,” says Lorraine Denton, Senior Financial Planner at Punter Southall Wealth. “However, I always feel that this should be carried out on a joint basis to make sure you do not miss out on beneficial tax planning, using all allowances available.”
“This doesn’t mean that you cannot still have your own savings, bank account, income kept separately and your own risk-profile for investments, but don’t miss out on what could be considerable tax savings, not just for you both during your lifetime, but for your children too when they receive your legacy.”
You can certainly have investment portfolios run separately, as Denton highlights. However, it may be worthwhile looking at them as a whole to make sure that – as a couple – your holdings are properly diversified and not overly concentrated in one asset class, market, sector or type of security.
An adviser will be able to spot many other instances in which joining forces financially might garner better results.