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02-09-2015, 02:44 PM
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#1
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Recycles dryer sheets
Join Date: Feb 2013
Location: Boise
Posts: 431
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Separate Assets
In my situation my wife (57) and I (55) have been married just about three years. We have kept our assets separate. We have closely the same amount of total assets. Myself 1.6 and my wife 1.3 + .35 paid off condo.
We both pay our own bills and split larger purchases such as a car.
Being very close to retirement I am curious how any of this fine bunch handle a situation such as this. Is there a better method then the 50/50 bill paying?
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02-09-2015, 02:47 PM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,228
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You could have a joint account that you fund equally, or however you decide, and pay all of your common bills from that.
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02-09-2015, 03:36 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Feb 2012
Posts: 1,495
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For 45 years we've shared it all. Of course, we started out together with nuttin' and while I was the primary earner never had a reason to segregate other than to each have our own tIRA and Roth.
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02-09-2015, 03:39 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Apr 2012
Location: Nashville
Posts: 2,506
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Not in that situation, as we are like H20Dude, married when we had negative net worth many years ago.
But, in your situation, 50/50 seems to make sense, particularly if kids are present from prior relationships. Maybe it would help to have the jointly funded account for ease of administration?
__________________
OMY * 3 2ish Done 7.28.17
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02-09-2015, 03:43 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Oct 2004
Posts: 1,719
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We've always kept thing separate - both single and married. The only combined accounts are the joint checking, the kids 529s and a credit card for joint expenses (yay Thank You points!)
__________________
He had one of those rare smiles with a quality of eternal reassurance in it . . . It faced, or seemed to face, the whole external world for an instant and then concentrated on you with an irresistible prejudice in your favor. -- The Great Gatsby, F. Scott Fitzgerald
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02-09-2015, 03:51 PM
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#6
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Full time employment: Posting here.
Join Date: Dec 2003
Location: San Carlos, CA
Posts: 639
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Separate assets, with a joint account for food, entertainment, vacations, etc. We each transfer money into the joint at the start of the month.
This is the second marriage for both of us. I think it's different when you marry young and have no significant financial assets. That's how my late first wife and I arranged things.
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02-09-2015, 03:55 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
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Similar situation here - we split joint costs like food, utilities, etc. 50/50, buy our own cars and other personal items like clothes.
Did the share and share alike thing in my first marriage when we started with essentially nothing.
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02-09-2015, 04:07 PM
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#8
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Recycles dryer sheets
Join Date: Feb 2012
Location: Florida's west coast
Posts: 160
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Second marriage for both of us, so DH and I have a joint account which we have funded proportionately to our income while working and with only a few months until retirement, we intend to continue. It has worked for over 10 years and we don't see a reason to change things...
That being said, I think everyone should do whatever works for them.
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02-09-2015, 04:12 PM
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#9
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Full time employment: Posting here.
Join Date: Feb 2014
Posts: 731
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Separate accounts here with a 50/50 split of expenses. Discretionary 'mad money' is up to each of us as long as the bills are paid.
I do get slightly annoyed when there is yet another box from someplace that DW has ordered from for something we already have or don't need.
But - you know the saying....
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02-09-2015, 04:23 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Oct 2014
Posts: 1,677
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Joint accounts and ownership of everything, except of course the individual TSP/401K / IRAs. We funded the retirement accounts as a team with our pool of money. We've been married over 25 years. DH came into the marriage with more than me but graciously considered everything "ours" right from the beginning.
It works for us.
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02-09-2015, 04:38 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Oct 2006
Posts: 4,629
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Quote:
Originally Posted by H2ODude
For 45 years we've shared it all. Of course, we started out together with nuttin' and while I was the primary earner never had a reason to segregate other than to each have our own tIRA and Roth.
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This describes us, right down to the 45 (we were married in June 1970).
I can see that people who come into second marriages with significant assets and prior children may want to keep them separate.
I can see that people who had ugly divorces and are somewhat gun-shy would keep them separate.
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02-09-2015, 04:45 PM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2007
Location: New Orleans
Posts: 47,500
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We're quite the opposite. We were both married before for many years, being a widower and a divorcee. To us, everything seems so much simpler if we just live apart, don't mix our money, and don't marry. No reason the church or state has to get involved.
Our emotional commitment to one another couldn't be deeper. We enjoy plenty of time together every day. Life is good.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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02-09-2015, 04:45 PM
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#13
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Thinks s/he gets paid by the post
Join Date: Jul 2006
Location: Denver
Posts: 3,519
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Isn't all money earned after marriage joint property?
Even then, it makes sense to keep your pre-marriage accounts separate & fund a joint account. If you're worried about possible scenarios, it would be wise to jointly see a lawyer/CPA.
We didn't do that, but most of our money has been earned after we got married. And we're getting along pretty well.
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02-09-2015, 04:59 PM
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#14
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Moderator Emeritus
Join Date: Aug 2007
Location: Northern Illinois
Posts: 16,603
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We have an arrangement similar to op. Real estate is joint, but all accounts are separate. Separate ira's. She pays some bills. I pay the rest. We're both retired. She has a pension. I'm living off my savings. We are both on her retirement insurance. We keep each other informed of our finances. Works very well for us.
Sent from my iPad using Early Retirement Forum
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02-09-2015, 06:50 PM
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#15
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,037
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Unmarried but living with Mr B. All of our assets are completely separate. He has grown children, I have none. It would make absolutely no sense to co-mingle assets from the point of view of inheritance.
I added him as an authorized user on my cashback credit card since he does all the shopping for the household, fills the gas tanks and gets the oil changes and car repairs done. I am so glad to be relieved of all that running around.
When we both had to replace our vehicles, we went 50-50 on the cost of both cars. He picked out both. Each car is registered in only one name.
All household expenses are split 50-50. Personal types of purchases (clothing, my gardening stuff, his accounting business stuff) are paid by the person who bought the item.
I always chip in on gifts and treats for his Mom. Gifts to his kids, well, I usually let him cover those, since I have no kids.
I own the house we live in, so I do not ask him to contribute to maintenance or repairs or taxes. He handles all of the business calls for me as my agent. He is so much better at that.
This system w*rks very well for us.
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
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02-09-2015, 07:09 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 2,610
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We have most retirement cash in separate accounts.
Part of the reason is for tax purposes.
Example......About a billion years ago my Mother bought a lot of stock and mutual funds. She held it jointly with me (only kid) so it would pass without question when she died. So I inherited it some 16 years ago. When I was told about the tax basis of the holdings(it was unknown, but it was clear enough that a tax nightmare was ahead,) I decided I would probably never sell any part of it. It has grown into an even larger mess since then.. Given the fact that it is only in my name, when someone else inherits the portfolio they will have a reset basis and the ability to sell it minus the tax.
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02-09-2015, 07:11 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 4,366
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We combined all income, budgeted for common expenses and retirement (whatever makes sense to you), and split the rest 50/50 into individual accounts. We used individual money to purchase cars, allowing maximum individual choice. We reimbursed for mileage from the common budget so choosing which car to take was roughly neutral. Over the years different items have been swapped from individual to common or vice versa as family choices affected our economics.
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02-09-2015, 07:18 PM
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#18
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Recycles dryer sheets
Join Date: Jun 2010
Location: Southwest Florida
Posts: 470
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Quote:
Originally Posted by walkinwood
Isn't all money earned after marriage joint property?
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Absolutely not. Where did that idea come from?
Bruce
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02-09-2015, 07:21 PM
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#19
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2007
Location: Independence
Posts: 7,298
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Coming up on 37 years of unmarried bliss. We share to our best mutual advantage. She has an ex but sharing works to her advantage with me - didn't with him.
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02-09-2015, 07:21 PM
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#20
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Recycles dryer sheets
Join Date: Jun 2010
Location: Southwest Florida
Posts: 470
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Quote:
Originally Posted by JPatrick
Example......About a billion years ago my Mother bought a lot of stock and mutual funds. She held it jointly with me (only kid) so it would pass without question when she died. So I inherited it some 16 years ago. When I was told about the tax basis of the holdings(it was unknown, but it was clear enough that a tax nightmare was ahead,) I decided I would probably never sell any part of it. It has grown into an even larger mess since then.. Given the fact that it is only in my name, when someone else inherits the portfolio they will have a reset basis and the ability to sell it minus the tax.
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In your example the basis of the portfolio should have been stepped up on your mother's death based on date of death values. You could easily go back and get those prices and manage your portfolio properly.
Bruce
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