Wealthy Couples paying everyday expenses

[Doe Be Doe]

I was watching Some Good News with John Krasinski. His wife, Emily Blunt, usually makes an appearance. They are married, live together, and have children. Both are famous and I assume very wealthy Hollywood elite.

 

When two famous and wealthy people live together how do they decide who pays the electric bill, who pays the school tuition, and other everyday expenses? The answer is probably that every such couple handles it differently but I thought I'd ask anyway.

 

Thanks.

[craigville beach]

I was watching Some Good News with John Krasinski. His wife, Emily Blunt, usually makes an appearance. They are married, live together, and have children. Both are famous and I assume very wealthy Hollywood elite.

 

When two famous and wealthy people live together how do they decide who pays the electric bill, who pays the school tuition, and other everyday expenses? The answer is probably that every such couple handles it differently but I thought I'd ask anyway.

 

Thanks.

 

many have business managers who take care of such things

[+ Charlie]

Probably the same way my partner and I have always paid those kinds of bills: out of a joint bank account, to which we contribute an equal amount. Each of us has his own account for his personal expenses.

[gallahadesquire]

My stepfather would take what he felt was a reasonable amount from my Mom’s checking. He did so a week before she died (which was sudden). She left him some cash which was less than what he’d taken, so I didn’t give him his inheritance.

[+ sniper]

At that level of wealth they usually have companies set up to deal with finances for tax purposes. That house likely belongs to Krasinski/Blunt LLC or something and they probably put some agreed upon amt in there. But they're also at a level of wealth where their housing expenses are pocket change and maybe they don't really pay much attention who pays for what in that regard.

[instudiocity]

I was watching Some Good News with John Krasinski. His wife, Emily Blunt, usually makes an appearance. They are married, live together, and have children. Both are famous and I assume very wealthy Hollywood elite.

 

When two famous and wealthy people live together how do they decide who pays the electric bill, who pays the school tuition, and other everyday expenses? The answer is probably that every such couple handles it differently but I thought I'd ask anyway.

 

Thanks.

In the real world, real married people believe in the "two become one" principle and don't divide the money up into his/hers, his/his, hers/hers (did I miss any pronoun combinations?) In the real world, what's one's is both's. So all the money goes into one pot, and all the bills are paid out of one pot.

 

Most gay couples I know tend to do it Charlie's way, my account, his account, and household account.

 

There are a bunch of advantages to share and share alike, like the married filing together rates, the ability to pool money and fully fund both retirements, the built-in line of inheritance in the laws should a married person die intestate.

[+ RJD]

In the real world, real married people believe in the "two become one" principle and don't divide the money up into his/hers, his/his, hers/hers (did I miss any pronoun combinations?) In the real world, what's one's is both's. So all the money goes into one pot, and all the bills are paid out of one pot.

 

My only issue with this principle is if there’s a large income disparity between the individuals. If I’m making a decent six-figure salary and my spouse makes substantially less, it’s not fair for him to contribute 50% of expenses. We may be living a lifestyle that’s possible because of my salary and well above his means, but there has to be a clear understanding of his financial responsibilities, whether it be a reduced percentage of expenses or him covering a component of the expenses, like food or utility payments. And that arrangement should never be held over someone’s head as leverage or inadequacy.

[instudiocity]

My only issue with this principle is if there’s a large income disparity between the individuals. If I’m making a decent six-figure salary and my spouse makes substantially less, it’s not fair for him to contribute 50% of expenses.

Not what I wrote. I said two become one... your 6-figures into the same account as his 5-figures, I hope, into one account. Your, plural your, expenses, savings, etc, all coming out of that one account. You shouldn't care if more than half the expense falls against your income. If you're working for common goals, you are together on finances, WHO CARES where the dollars come from?

[+ RJD]

Not what I wrote. I said two become one... your 6-figures into the same account as his 5-figures, I hope, into one account. Your, plural your, expenses, savings, etc, all coming out of that one account. You shouldn't care if more than half the expense falls against your income. If you're working for common goals, you are together on finances, WHO CARES where the dollars come from?

 

My comment was based on the assumption that multiple accounts would be maintained - a joint account for household expenses, one for savings, and individual personal accounts for discretionary spending. My point is that I wouldn’t expect my partner, who may be making substantially less than me, to contribute an equal amount to the household expenses, especially if we’re living at a standard above his means. If I’m earning 65% of the household income, I would expect to contribute at least that percentage of the household expenses. I’m not against the idea of what’s mine is yours, what’s yours is mine and it becomes ours, but there’s something to be said to having a few dollars of your own in your own name.

[instudiocity]

My comment was based on the assumption that multiple accounts would be maintained - a joint account for household expenses, one for savings, and individual personal accounts for discretionary spending. My point is that I wouldn’t expect my partner, who may be making substantially less than me, to contribute an equal amount to the household expenses, especially if we’re living at a standard above his means. If I’m earning 65% of the household income, I would expect to contribute at least that percentage of the household expenses. I’m not against the idea of what’s mine is yours, what’s yours is mine and it becomes ours, but there’s something to be said to having a few dollars of your own in your own name.

That's Charlie's post. Not mine.

 

Putting every dollar in one account and mutually deciding how the whole of y'all's money is spent is far and away the best way a couple can manage their income, budgeting, savings and retirements.

Edited May 28, 2020 by instudiocity

[thickornotatall]

In the real world, real married people believe in the "two become one" principle and don't divide the money up into his/hers, his/his, hers/hers (did I miss any pronoun combinations?) In the real world, what's one's is both's. So all the money goes into one pot, and all the bills are paid out of one pot.

 

Most gay couples I know tend to do it Charlie's way, my account, his account, and household account.

 

There are a bunch of advantages to share and share alike, like the married filing together rates, the ability to pool money and fully fund both retirements, the built-in line of inheritance in the laws should a married person die intestate.

That is how we do it...Tom writes me a check once a month....I contribute the same amount to our joint checking account and I pay the bills...Best way for us ..

[Rudynate]

In the real world, real married people believe in the "two become one" principle and don't divide the money up into his/hers, his/his, hers/hers (did I miss any pronoun combinations?) In the real world, what's one's is both's. So all the money goes into one pot, and all the bills are paid out of one pot.

 

 

 

What is the real world and what are real married people? It seems that the premise of your remark is that gay married couples who may have found an unconventional way to manage their joint finances aren't real married couples.

[instudiocity]

What is the real world and what are real married people? It seems that the premise of your remark is that gay married couples who may have found an unconventional way to manage their joint finances aren't real married couples.

Nope, not getting into any arguments.

 

The real world, by my intended definition, are financially successful couples realizing that combining their income is more powerful on the behalf of both people. Not only sharing expense but also planning and achieving goals financially beyond what either one could attain possibly attain. When does fully funding both retirement accounts to the max hurt either one- they will inherit the other one. When does Married Filing Jointly hurt anyone? When does the cashflow of the two harm anyone in comparison to dividing that cashflow, unequally between the two.

 

Isn't all marriage, gay or straight defined as two becoming one? Yet, some argue that while hooked together emotionally, physically, legally, y'all insist on not hooking together fiscally. I don't get it.

[Rudynate]

Nope, not getting into any arguments.

 

The real world, by my intended definition, are financially successful couples realizing that combining their income is more powerful on the behalf of both people. Not only sharing expense but also planning and achieving goals financially beyond what either one could attain possibly attain. When does fully funding both retirement accounts to the max hurt either one- they will inherit the other one. When does Married Filing Jointly hurt anyone? When does the cashflow of the two harm anyone in comparison to dividing that cashflow, unequally between the two.

 

Isn't all marriage, gay or straight defined as two becoming one? Yet, some argue that while hooked together emotionally, physically, legally, y'all insist on not hooking together fiscally. I don't get it.

 

 

Agree completely. It seemed your premise could have been better stated

[Guest]

...

Isn't all marriage, gay or straight defined as two becoming one? Yet, some argue that while hooked together emotionally, physically, legally, y'all insist on not hooking together fiscally. I don't get it.

Well, in California, for example, unless a prenuptial agreement specifies otherwise, money earned during the marriage is community property. If a couple intends to marry with another arrangement, that should be carefully specified before the marriage. The states in red are community property states:

By Legalskeptic - Own work, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=16037686

Map of the United States with community property states in red. Additionally, Alaska is an elective community property state, and of the five inhabited US territories, Puerto Rico and Guam are community property jurisdictions.

[instudiocity]

Well, in California, for example, unless a prenuptial agreement specifies otherwise, money earned during the marriage is community property. If a couple intends to marry with another arrangement, that should be carefully specified before the marriage. The states in red are community property states:

Let’s not forget, retirement plans are the property of the spouse unless the spouse has signed away their right to inherit. That’s federal tax code

[instudiocity]

Agree completely. It seemed your premise could have been better stated

English teacher?

[Rudynate]

English teacher?

 

 

I like logical well constructed arguments.

[instudiocity]

I like logical well constructed arguments.

It seemed you were judging me instead of my point.

[SeattleDaddy]

My partner and I have a joint checking, savings and investment account that we use for monthly expenses, vacations, investments for the future together, etc.. We both put a set amount in automatically each month. For any difference, we have our own accounts for our own personal spending/saving. That way no one can get upset if one chooses to make a personal purchase the other doesn't agree with as we have our own money.

[+ keroscenefire]

At that level of wealth they usually have companies set up to deal with finances for tax purposes. That house likely belongs to Krasinski/Blunt LLC or something and they probably put some agreed upon amt in there. But they're also at a level of wealth where their housing expenses are pocket change and maybe they don't really pay much attention who pays for what in that regard.

Yes and a lot of these companies aren't even regularly monitored by the people who own them. Back when the Panama Papers exposed a lot shady offshore accounts, a lot of celebs were listed like Emma Watson, Bono, and Jackie Chan...they had no idea their money was being put there.

[+ Reisr30]

Any recommendations on splitting the private jet expenses?

 

JK;)

[MikeBiDude]

Any recommendations on splitting the private jet expenses?

 

JK;)

Find a good fractional jet use program!

[MscleLovr]

Totally agree @MikeBiDude, NetJets is the best.