
Blog When One Spouse Manages the Finance
January 30, 2025It’s a scenario we encounter often: one spouse takes charge of the finances while the other stays in the background, trusting everything is under control. This arrangement works, until it doesn’t.
The Importance of Shared Financial Awareness
It makes sense for the spouse with greater financial acumen to manage the family’s investments, savings, and financial planning, while the other focuses on different responsibilities. This division of labor can work well, but it also comes with risks.
In my own family, I handle financial planning because it’s both my expertise and my passion, while my wife manages bill payments, the kids’ tutoring, and related expenses. If you asked me the cost of our electricity bill or our kids’ tutoring, I wouldn’t know, only that it’s significant. That’s her domain, and she handles it effectively.
But what if something were to happen to her? I’d suddenly have to step in and figure it all out. While I could eventually get up to speed, it would take time and effort. And while those areas are essential, they don’t carry the same stakes or emotional weight as making critical financial or investment decisions.
Why Both Spouses Should Be Involved in Financial Planning
When it comes to financial and investment decisions, the stakes are much higher. If the spouse managing the finances is suddenly unable to continue, the other is often unprepared to step into the role. This is especially challenging during an emotional time, such as after the loss of a partner.
In these situations, the combination of grief, uncertainty, and the pressure to make critical decisions can lead to paralysis. Even under the best of circumstances, financial decisions can be difficult. Being forced into the position of sole decision-maker at an emotionally vulnerable time compounds the difficulty.
Many of our clients recognize this. They understand that one spouse managing everything leaves the other at a disadvantage, particularly in the event of a death. They also know that while one spouse may be capable now, there may come a day when they no longer want to handle the burden alone. At that point, they’ll want a trusted team to step in and support them.
This is why finding a financial team early is so important. It’s far easier to establish a trusted relationship when both spouses are healthy, capable, and involved. Imagine how much harder it would be for a grieving spouse, who may lack financial experience, to find the right financial team after losing their partner.
Taking Steps to Prepare
If you already have a financial team, ensure both spouses are actively involved. Attend planning meetings together, ask questions, and develop a basic understanding of your family’s finances. This shared involvement goes a long way in mitigating potential challenges down the road.
If you don’t have a financial team yet, we encourage you to start building that relationship now. Trust takes time to establish, and starting early ensures you’ll have the support you need when it matters most.
If this resonates with you, we invite you to reach out. At Three60 Wealth, our Family Office service is designed to help you navigate the complexities of financial planning and investment management. Together, we can help you make confident decisions that are best for you and your family. The best time to start is today.
Authored by: Jason Nagel, at Three60 Wealth