Kim And Kanye Keep Finances Separate. Should You?

Couple Snow

In typical Kanye West fashion – and we don’t mean his so-called clothing line – he took to Twitter over the weekend with an epic series of ridiculous Tweets that unveiled he is $53 million dollars in debt. Our personal favorites:

Kanye Tweets Zuckerberg

Kanye Tweets Zuckerberg

He goes on to explain why he’s in this predicament:

“Yes I am personally rich and I can buy furs and houses for my family but I need access to more money in order to bring more beautiful ideas to the world. If I spent my money on my ideas I could not afford to take care of my family. I am in a place that so many artist end up.”

But then, there’s this. According to TMZ, Kanye doesn’t actually owe $53 million to anyone. Apparently, this is how much he has invested in his fashion and music endeavors out of his own pocket.

Whatever the money situation is, there’s never a dull moment with that Kanye!

Since SageCouple is about couples money management, our curiosity immediately went to this place:

Did Kim Kardashian know about Kanye’s debt/investment before she married him? How does the couple manage their money?

According to People, Kim Kardashian West and Kanye West keep their finances separate. It’s “his money” and “her money”.

Just how much “his money” and “her money” is there?

According the Forbes, Kanye earned $30 million in 2014 and $20 million in 2015. Meanwhile, Kim nearly doubled her earnings from $28 million in 2014 to $53 million in 2015.

Celebrity money feels like Monopoly money, doesn’t it?

Kim and Kanye are far from our role models (although Keeping Up With The Kardashians is one of our guilty pleasures). However, we love that this Twitter storm has raised an important couples money question:

Should you and your partner keep your finances separate?

In general, we support the idea to merge some or all of your finances. See our amazingly useful step-by-step guide on merging your money.

However, there are definitely situations when it’s a good idea to keep the moola separate:

1. When you don’t have full trust.

You should only combine your money when you’ve established full, mutual trust. This means that you’ve demonstrated to each other, with no doubt in your minds, that you can count on the other person. Trust can take months or even years to build. It’s a red flag if you have any doubts, so listen to your gut and don’t merge your money!

2. When you have wildly different approaches to money management.

Let’s say you fully trust each other. However, you just can’t find common ground for how to manage your money. You come from two different ends of the money management spectrum. You just don’t see a way that you can peacefully co-exist in the same house if you have to discuss your spending, saving, investing and retirement planning with each other. There are couples who have successful, long-running relationships with completely separate accounts – it can be done!

3. When one or both of you have made financial mistakes.

Perhaps you’ve made some mistakes along the way and have $30,000 in credit card debt. Meanwhile, your partner has a squeaky clean financial history. Past behavior is an indicator of future behavior, so it can be a good idea – and more fair to your partner – to keep your finances separate until you pay off your debt. Your partner may be happy to jump in and help you recover from your past missteps – and that’s great! Just don’t ever assume that’s the case and talk about it before merging.

4. When you’ve built up or inherited wealth.

This is also what prenups are for. When there is a significant amount of money at stake, many people feel it’s the smart thing to do to protect themselves by keeping their money separate and/or having their partner sign a prenup. No matter how much you love each other today, you never know what could happen in the future. This is a sensitive topic that turns many people off. The very idea of being asked to sign a prenup makes many question if their partner truly loves and trusts them. However, it can be the fair thing to do. And anyway, if you’re not marrying them for their money, then why NOT sign the prenup?

Do you and your spouse or significant other keep your finances separate? Why or why not? Leave a comment below!

We want to hear from you! Leave a comment.

Your email address will not be published. Required fields are marked *