Financial planning as a couple

The 5 money questions every couple needs to settle (Germany):

1. How do we split the costs?

• 50/50: each pays half (fair with equal incomes)
• Proportional: each pays according to income (fair with different earnings)
• Everything shared: one pot for everything (requires maximum trust)

2. Which account model?

• Recommended: the 3-account model – 1 personal account each + 1 joint account
• A fixed amount into the joint account by standing order

3. Which tax classes?

• Similar incomes: IV/IV
• Big difference: III/V (more net pay right away, but possibly a back payment)
• Before parental leave: switch to III (higher parental allowance!)

4. How much to save?

• Define a shared savings goal: emergency fund, holiday, property
• At least 20% of your joint net income
• Both should have their own ETF savings plan (independence!)

5. Buy a property?

• Decide together, calculate together
• Both in the land register (50/50) = both are owners
• Both on the loan agreement = both are liable