But here’s the deal—it can be challenging to work together on finances. In fact, according to a recent study, 21 percent of divorced adults cited money as the reason for their separation.

But here’s the good news: with honest communication and a shared plan, you and your spouse can tackle money as a team. In fact, as newlyweds, you and your spouse are in the perfect place to discuss money as you work to combine finances.

WHAT DOES IT MEAN TO COMBINE FINANCES?

Joint finances mean something different for every couple. Some couples keep their money mostly separate and only share one or two bank accounts. Other couples combine everything—bank accounts, credit cards, investments accounts, and more. When it comes to combining finances there isn’t a right or wrong answer. Instead, it’s important to find the best solution for you and your spouse.

REQUIREMENTS FOR COMBINING YOUR FINANCES AFTER MARRIAGE

Combining your finances can be a tricky process. It requires patience, empathy, and a willingness to compromise. Over the course of this guide, we’ll discuss some of the most common interpersonal hurdles newly married couples face when trying to bring their finances together.

Reaching common ground and making important decisions together is the uniquely challenging part of combining your finances. No matter what methods you ultimately choose, however, in order to successfully manage your money on a month-to-month or day-to-day basis, you’ll need these three things:

A SET OF SHARED PRIORITIES

Personal money management should always begin with an understanding of what you value and what you want. Coming together as a combined household, you’ll need to merge those ideas and create a list of joint priorities that you both support and believe in. These priorities will help influence your most crucial financial decisions.

A HOUSEHOLD BUDGET

At its most basic level, a budget should tell you how much money you anticipate having and where you think it will go. Your income and expenses will almost certainly change once you’re married, so it’s important that you either create a new combined budget, or revisit your individual budgets.

A SPENDING PLAN

While your budget represents a theoretical version of your finances, your spending plan makes that theory a reality. A spending plan provides the details missing in your budget - it tells you how you’ll address your expenses and how you’ll work towards your goals. It’s especially crucial to make sure you have a plan when combining finances to avoid misunderstandings and confusion.

Those three pieces of personal finance are important no matter your relationship status. But before you make those kinds of decisions in a newly combined household, however, you have to lay some groundwork.

HOW TO BEGIN THE PROCESS OF COMBINING FINANCES

The hardest part of combining finances is often the first conversation. If you’re not used to talking about money, it is difficult to open up and speak honestly. Even beyond that, you might have different money beliefs than your partner. That’s why it’s important to have conversations about money before you ever actually combine anything.

Here’s everything you need to know about how to combine finances after marriage.

BE COMPLETELY HONEST

When it comes to money and marriage, honesty is crucial. However, it’s difficult to be honest if you’re not sure about your own financial situation. That’s why it’s important to be honest—first with yourself and then with your spouse.