3 steps divorced women could take to feel confident merging their finances with a new partner

Discover three actions that could help divorced women maintain their financial independence and feel confident about merging their finances with a new partner.

Hollywood actors Brad Pitt and Angelina Jolie – or “Brangelina” – have recently finalised their divorce after eight years of legal battles. Financial disagreements (in particular, surrounding a French vineyard the couple had both previously held shares in) were a significant sticking point in their long-running dispute.

According to the BBC (31 December 2024), upon closing the case, Jolie’s lawyer said, “Angelina is exhausted but she is relieved this one part is over”.

Indeed, living through such an experience could knock any woman’s confidence and make her feel cautious about merging finances with a new partner.

Read on to discover three important steps divorced women could take to maintain their financial independence and feel confident about combining finances in their next relationship.

1. Consider keeping separate accounts for personal expenses and savings

There may be some benefits to working as a financial team – you could pool your financial knowledge, share the responsibility of making key decisions, and manage your wealth more tax-efficiently.

However, it’s important that you understand each other’s financial situation, attitude to money, and long-term goals before you open joint bank accounts or take on shared commitments such as a mortgage.

If your partner has a poor credit rating or a high level of debt, merging your finances could negatively affect your wealth along with your mental health. Equally, if your partner is an extravagant spender and you’re a careful saver, this could lead to misunderstandings and disagreements.

Fortunately, whether you manage your money jointly or separately doesn’t have to be an all-or-nothing decision.

For example, you might choose to set up joint accounts for shared expenses such as your rent or mortgage, and utility bills, while also keeping separate accounts for personal expenses and savings.

This hybrid approach may be especially reassuring if you’ve had an unpleasant experience sharing finances with an ex-spouse or partner in the past, as it allows you to retain a degree of financial independence.

What’s more, you can continually review your agreement and use this “mine, yours, and ours” approach as a stepping stone to a more united financial arrangement in the future.

2. Establish clear financial agreements

Open communication is crucial for effective financial planning as a couple.

If you’re thinking of combining some or all of your finances with a new partner, setting clear boundaries could help you feel more confident about taking this next step in your relationship.

As a couple, you might find it helpful to:

• Agree how much you will each contribute to your emergency fund, savings, and investments
• Establish clear spending limits for non-essential purchases that don’t require joint approval
• Schedule regular discussions about your finances to keep the lines of communication open
• Be as open and honest as possible about your individual financial situations
• Agree how much each person will contribute to shared costs
• Be prepared to negotiate and compromise
• Seek professional financial advice.

You may feel uncomfortable talking about money with your partner. Or perhaps you’re struggling to reach an agreement you’re both happy with.

If so, you might benefit from working with a financial planner who can act as an impartial mediator and help you understand the relative pros and cons of merging different aspects of your finances.

3. Consider a prenuptial or cohabitation agreement

If you’re apprehensive about merging your finances with a new partner, signing a more formal agreement may provide valuable peace of mind.

A pre-nuptial agreement – or “prenup” – is a document that sets out your financial agreement as a couple before you marry or form a civil partnership.

While prenups are not legally binding in England, Wales and Northern Ireland, the courts are likely to take them into account if you decide to separate. In Scotland, a prenup may be legally enforceable.

Alternatively, if you have no plans to marry or form a civil partnership, you might prefer to make a cohabitation agreement. This is usually legally binding if it meets certain criteria, such as the requirements that both parties sign the document and are honest about their financial situation.

While there are some differences between a prenup and a cohabitation agreement, both serve to:

• Clarify ownership of assets, including property
• Specify the division of assets if the relationship ends

In addition, cohabitation agreements typically define each person’s financial responsibilities while they live together.

If you’re considering making such an agreement, a financial planner can offer valuable guidance and support. For example, by helping you understand your financial assets and obligations as a couple, identifying potential risks, and collaborating with legal professionals to ensure that your agreement is comprehensive and correctly drafted.

Get in touch

I have extensive experience supporting divorced women with all their financial planning needs. If you’re considering merging your finances with a new partner, I can help you reach an agreement you feel happy and confident with.

If you’d like to find out more, please get in touch by email lottie@truefinancialdesign.co.uk or call 03300889138.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. 

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.

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