How Should Couples Split Finances?
Financial guidance for how couples should split finances
While there’s no one “right” way, we favor the income-based approach to split expenses with your partner. When each of you pays the percentage you earn toward shared expenses, it makes this tricky financial situation as fair as possible for everyone.
First, add up your total household income. Then, calculate each partner’s percentage of your total household income. To do this, divide Partner A’s income by the household total. Do the same using Partner B’s income.
Keep those numbers nearby while you add up your total monthly shared expenses: rent / mortgage, utilities, groceries, joint investments, savings goals, etc. Finally, multiply that number by each partner’s percentage of the household income. That’s how much each of you should contribute based on income.
Here’s an example of how to split bills based on income:
Partner A & Partner B’s total household income = $110,000
Partner A’s annual income = $44,000
Partner A’s percentage of total household income: $44,000 / $110,000 = 40%
Partner B’s annual income = $66,000
Partner B’s percentage of total household income: $66,000 / $110,000 = 60%
Partner A & Partner B’s total monthly shared expenses = $4,000
Partner A’s contribution to monthly shared expenses: $4,000 x 40% = $1,600
Partner B’s contribution to monthly shared expenses: $4,000 x 60% = $2,400
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Ellevest recommends that couples split bills based on income for things to be as fair as possible. With this approach, each person pays the percentage they make.
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To determine how much each of you owes, calculate each partner’s percentage of your total household income, then multiply each partner’s percentage by your total monthly shared expenses. See example.
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Make it easier by using a joint checking account to pay shared expenses.
Financial guidance for how couples should split finances
While there’s no one “right” way, we favor the income-based approach to split expenses with your partner. When each of you pays the percentage you earn toward shared expenses, it makes this tricky financial situation as fair as possible for everyone.
First, add up your total household income. Then, calculate each partner’s percentage of your total household income. To do this, divide Partner A’s income by the household total. Do the same using Partner B’s income.
Keep those numbers nearby while you add up your total monthly shared expenses: rent / mortgage, utilities, groceries, joint investments, savings goals, etc. Finally, multiply that number by each partner’s percentage of the household income. That’s how much each of you should contribute based on income.
Here’s an example of how to split bills based on income:
Partner A & Partner B’s total household income = $110,000
Partner A’s annual income = $44,000
Partner A’s percentage of total household income: $44,000 / $110,000 = 40%
Partner B’s annual income = $66,000
Partner B’s percentage of total household income: $66,000 / $110,000 = 60%
Partner A & Partner B’s total monthly shared expenses = $4,000
Partner A’s contribution to monthly shared expenses: $4,000 x 40% = $1,600
Partner B’s contribution to monthly shared expenses: $4,000 x 60% = $2,400
Everyone’s financial picture looks different — especially for women.
Even if couples are on the same career level, the wage gap can be affecting how much women are taking home — 83 cents to a man’s dollar, and less if you’re a woman of color. To make the most of your budget once shared expenses are paid, you need a financial plan that’s personalized to your unique circumstances.
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FAQS
You could split everything 50–50. It’s easy (less math to do), and — in fact — ideal if you and your partner have similar incomes. If one person makes more than the other, “equal” might not mean “fair.” Then, the split-down-the-middle method leaves one person putting their entire paycheck toward paying for shared expenses while the other is left with extra money to spend. And when splitting bills starts to feel one-sided, it can cause tension. That’s why we promote a more equitable bill-splitting approach.
You’ll have to have an important money talk to decide which expenses are shared expenses. If you need a conversation started, Ellevest has a Calculator to Split Expenses With a Partner worksheet — free for clients — which can help kick it off. Otherwise, start with things that seem obvious: rent / mortgage, utilities, internet. Then, move onto the things that might not be so clear-cut: groceries, child care, car payments, streaming services. Finally, do discuss any murky stuff, like how individual debt will be managed. No matter how you choose to break it up, it’s important that you’re both on the same page about your finances — how much is coming in, how much is going out, and what long-term financial goals you want to hit together. Then, make a plan to get there that works for you.
If you two don’t have one already, open a joint checking account just for covering shared expenses. Each partner will transfer their contribution here, whether it’s the full amount or a part of every paycheck, and you’ll pay your bills from here. Not only does this allow for each person to maintain some financial independence, a shared checking account simply makes it easier for couples to split bills: no more sending (or forgetting to send) money requests, no more accidentally spending what you owe, no more unnecessary relationship stress.