Should you split the bills 50/50 with your partner?

Moving in with your partner is super exciting, but agreeing on how to split the bills can be a bit tricky. Our recent survey shows that 72% of couples argue about money.

With this in mind, we look at the different ways couples use to handle their shared finances, to see if splitting things 50/50 really is best. Plus, we’ve got five top tips to help you manage your money together.

What is the fairest way to split finances?

Figuring out the fairest way to split finances really depends on the couple. There's no one-size-fits-all solution since every relationship is unique.

So, it's a good idea to chat with your partner about the different options and find something that works for you both. Whether that's splitting bills 50/50, pooling your money, or coming up with another plan.

Just make sure you both agree on what's fair and set clear expectations from the start to avoid any stress on your relationship.

How do couples split finances?

Here are some popular money management methods that cohabiting and married couples use:

50/50 split

With a 50/50 split, you both chip in the same amount for shared expenses (like rent or mortgage payments) and personal expenses (like phone bills). Just add up all the bills and divide the total by two.

It’s a simple plan and you both know what to expect each month. But bear in mind that paying equal amounts is not always the same as dividing bills fairly. Partners rarely earn the same amount as each other, and some people have more personal expenses than others.

So, if you’re going 50/50, make sure that you both have a reasonable amount of spare cash left over each month, after the bills have been taken care of.

Split bills based on income

We found that 1 in 4 couples argue about differences in their income. One way around this could be to pay a percentage of the bills based on your income. This means the higher earner pays a bigger share, and the lower earner pays less.

For example, if you make £20,000 and your partner makes £60,000, your total household income is £80,000. Because you bring in 25% of the money, you’d pay 25% of the bills and your partner would cover 75%.

This system might make sense if you earn different amounts and want to contribute in proportion to your take-home pay. But both partners need to feel it’s fair for it to work.

Keep personal bills separate

You could try the ‘yours, mine, ours’ method, where you split the household bills using one of the above ways, but keep personal bills separate.

This gives you both some privacy and financial independence over your money. And it could work out fairer if one person has more personal outgoings than the other.

Divvy up the responsibilities

Some couples like to share finances by having each partner take on different responsibilities. One person might handle rent and utilities, while the other covers petrol and groceries, for example.

This works if you want to keep bank accounts separate, but it can be tricky. One person might end up paying more, and expenses like food can vary each month.

If you want to keep things equal, track your expenses and balance things out at the end of the month. It could be helpful to get a free bill splitting app, like Splitwise, to keep a record of IOUs. You could also consider loading a set amount of money onto a prepaid card (be aware that charges often apply).

‘All in’ method

While some people like to keep their own bank account, others prefer the ‘all in’ method where you pool your money into one pot. All household bills, personal expenses, and savings come out of the same joint bank account, which can make budgeting easier.

Just make sure that you trust each other fully and discuss any large purchases before you make them.

How to manage your shared finances as a couple

Here’s our five top tips:

1. Talk about money early on

Many people find it hard to talk about money. In fact, less than half (48%) of the people we surveyed said they talk openly with their partner about finances. 15% said they avoid the topic altogether. But there are benefits to it.

Sitting down and having an open and honest conversation about things like your income, debts and savings can help to set expectations and avoid conflict further down the line.

It goes without saying that it’s wise to get to know the person first and make sure they are trustworthy before you start sharing this type of information. But if you’re married or living together, then it’s a chat that’s worth having.

Read on to find out how to talk to a new partner about money.

2. Set shared money goals

What do you both want to achieve financially? Whether it's saving for a house, planning a dream holiday, or building an emergency fund, having common goals will give you something to work towards together. Plus, it's a great way to stay motivated and on the same page.

Read on to find out how to make your financial goals achievable.

3. Create a joint budget

Budgeting might not sound like the most exciting thing, but it's essential.

Set aside some time to go through your household budget together. Track your income and outgoings, and allocate funds for your needs, wants, and savings. There are plenty of budgeting apps out there, like Emma, that help to simplify this process (charges may apply).

4. Decide on joint or separate accounts

Some couples prefer to have joint accounts for everything, while others like to keep things separate. There's no right or wrong way to do it—just find what works best for you.

You could also consider a hybrid approach, where you have a joint account for shared expenses and separate accounts for personal spending.

Bear in mind that if you take out a joint bank account, you’re linking yourself financially to the other person. If their credit rating is poor, opening a joint account could affect your credit score and ability to get finance in the future.

Remember, if someone goes into the overdraft, both people on the account will be equally responsible for paying it back.

5. Have regular money catch-ups

Make a habit of having regular money check-ins. This could be a monthly meeting where you review your budget, track your progress towards your goals, and make any tweaks.

Be flexible and willing to adjust your budget and goals as needed. And most importantly, keep the lines of communication open. If something's not working, talk about it and find a solution together.

Read on for tips on how to talk to your partner about debts, and find out how the 50/20/30 rule could make budgeting easier.