In theory

IN THE extreme case, both partners have only joint savings and spending accounts.

They even merge their credit card bills, with one spouse holding supplementary cards in order to be transparent about how he/she spends his/her money during the month.

Both husband and wife can withdraw freely from the joint current account, although one spouse is usually the 'treasurer' handling the household expenses.

A fixed amount is deposited every month into a joint savings account that requires both parties' signatures and does not have an ATM card function.

A separate account is set up to hold funds for investments in stock and property, which are in both spouses' names. Both parties have passwords and access to each other's stockbroking accounts.

In practice

Mr Andrew Wan and Ms Joy Teh, who are getting married in January, have ironed out the details of completely merging their finances as a couple.

'All accounts are joint because we feel we shouldn't keep things from each other. This shows our commitment to each other, and helps us to feel emotionally and financially secure in our relationship' said Ms Teh, 26.

Said Mr Wan: 'We inform each other of most of our purchases, even daily items.'

Both their salaries are channelled via Giro into a joint account, from which all loans, insurance payments, investment, church tithing and family contributions are paid.

They plan to save and invest Ms Teh's income and use Mr Wan's earnings for daily expenses.

Pros

» No secrets and no skeletons in the closet.

» Encourages long-term financial planning for the family.

Cons

» Potential for inequitable spending by one spouse.