Marriage is not just a partnership of two individuals but also a financial partnership. Decisions about investments, property ownership, loans, insurance and succession planning can have long-term consequences for both spouses.
At a panel discussion on Couple Finance: Managing for Tax Efficiency and Being Ready to Face Eventualities at the ET Wealth Expo 2026, financial experts discussed how couples can structure their finances, avoid common income tax clubbing mistakes and protect their wealth against unforeseen circumstances.
Here are the key takeaways from the discussion.
Joint account for expenses, individual accounts for investments
Should married couples pool all their money into one account or maintain completely separate finances?
Suresh Sadagopan, founder of Ladder7 Financial Advisories, said couples follow different arrangements depending on their circumstances. While some maintain separate accounts and investments, others have one spouse managing household expenses and the other building investments.
However, he cautioned against an arrangement where one spouse spends all their earnings while the other invests and accumulates wealth. This could create financial difficulties if the marriage breaks down, particularly for the spouse who has not built independent wealth.
He recommended a hybrid arrangement in which both spouses contribute towards a joint account for household expenses, in proportion to their respective incomes. They can continue investing through individual accounts, ensuring both participate in wealth creation.
Transferring money to your spouse does not automatically save tax
One common misconception among couples is that transferring money to a spouse and investing it in their name can help shift the resulting income to their tax return.
Nitin Kaushik cautioned against this assumption. Under the income tax clubbing provisions, if a husband gifts money to his wife and she invests it in a fixed deposit or mutual fund, the income generated is generally clubbed with the husband’s income and taxed in his hands.
In other words, transferring ownership of the money does not necessarily transfer the tax liability.
Kaushik suggested that couples could instead explore extending a genuine loan to the spouse at a reasonable interest rate, subject to proper documentation. For instance, if a husband lends money to his wife at 6-7% interest and she earns a higher return by investing it, the difference could potentially create a tax-planning opportunity.
However, the arrangement must be genuine and evaluated in light of applicable tax provisions.
Hitesh Shah also highlighted that there is no universal tax-planning formula for couples. Opportunities depend on their respective incomes, tax brackets, investments and financial objectives.
Buying property jointly? Maintain a clear contribution trail
When couples purchase a house together, their financial contributions may not always be equal. One spouse may contribute more towards the down payment, while the other pays a larger share of the home loan EMIs.
Shah advised couples to clearly document how they intend to fund the property and contribute towards the loan. Maintaining records of each co-owner’s contributions can help establish the financial trail and reduce the scope for disputes.
Couples should also examine ownership, borrowing and actual repayment contributions when claiming home loan tax benefits rather than assuming that adding both names to the property automatically makes both eligible for deductions.
Aditi Sharma emphasised that asset ownership should be viewed from the perspective of family security, not merely tax savings. If all assets are held in one spouse’s name, the other could face difficulties accessing them in the event of death or incapacity.
A nominee is not necessarily the legal heir: Why couples need a will
Many people assume that naming their spouse as the nominee in a bank account, mutual fund, EPF account or insurance policy automatically makes them the legal owner of the asset.
Sharma clarified that this is not necessarily the case. For several financial assets, a nominee primarily acts as a custodian who receives the asset or facilitates its transfer following the account holder’s death. Ultimate ownership may be determined by succession laws and applicable legal provisions.
However, certain assets, including life insurance policies, have specific statutory provisions governing beneficial nominees.
Therefore, nomination should not be treated as a substitute for a will.
Sharma recommended that couples prepare wills and ensure their nominations and succession documents do not contradict one another. A will allows individuals to specify how their assets should be distributed instead of leaving the distribution entirely to applicable succession laws.
She also cautioned against postponing estate planning until a person reaches a particular age or accumulates substantial wealth. Even someone who owns just one house or a single financial asset should consider preparing a will.
Your spouse should know where your money and documents are kept
If one spouse manages all the family’s finances, the other could face considerable difficulties if that person suddenly passes away.
Sadagopan said the surviving spouse may have to deal with emotional trauma while simultaneously managing household expenses and accessing financial assets.
He recommended maintaining sufficient accessible funds through a joint bank account or an emergency fund invested in relatively accessible instruments such as liquid funds or arbitrage funds. This can help the family meet immediate expenses while other assets are transferred or settled.
Sharma suggested maintaining a financial checklist containing details of bank accounts, fixed deposits, investments, insurance policies, property documents, lockers and important identification documents. Couples should also know where their wills, digital records and passwords are securely stored.
Kaushik suggested maintaining an ‘If I die before you’ diary, documenting both assets and liabilities. He stressed that transparency should extend to outstanding loans and money lent to others, not just investments and bank balances.
He recommended reviewing this information at least once a year, suggesting April 1 as a suitable time.
Employer health insurance is not enough
Medical emergencies, disabilities and chronic illnesses can disrupt a family’s finances just as severely as the death of an earning member.
Sadagopan cautioned against relying entirely on employer-provided health insurance. Employees could lose this protection when they change jobs or take a career break. He recommended having an independent health insurance policy with adequate coverage.
He also pointed out that health insurance does not cover every medical expense. Nursing care, for instance, can become a substantial recurring expense. Depending on the city and level of care required, it could cost Rs 30,000-40,000 to Rs 1 lakh-1.2 lakh a month.
If such care is needed for several months or years, the financial burden can become substantial.
He therefore recommended maintaining a separate medical emergency fund, particularly for families with elderly parents or members who may not qualify for adequate health insurance.
If one spouse earns 70-80% of household income, term insurance becomes critical
When one spouse contributes most of the household income, the family’s financial dependence on that individual is considerably higher.
Kaushik highlighted the importance of adequate term life insurance in such circumstances. He suggested considering life cover equivalent to around 10-15 times the earning spouse’s annual income, while assessing actual household needs and liabilities.
He cautioned against viewing term insurance merely as an expense or an investment that pays out only if the insured person dies. Its real purpose is to ensure that the surviving family can maintain financial stability even when the primary earning member is no longer around.
Keeping assets separately owned does not guarantee protection during divorce
Couples may assume that keeping investments and properties in their individual names will automatically protect their wealth in the event of separation. However, the legal and financial position can be more complicated.
Sharma pointed out that India does not have a default rule under which all assets acquired after marriage are automatically divided equally between spouses.
She recommended maintaining an asset register recording each spouse’s assets, liabilities and contributions towards common assets. Couples should also document inheritances and gifts received from their respective families.
Sadagopan added that simply holding assets in one person’s name does not necessarily mean that person should receive everything in a separation. A spouse who gives up a career to raise children, for instance, makes a significant non-financial contribution to the family.
He shared an example from his practice in which a husband was advised to consider giving around 70% of the assets to his wife, who had given up her career to raise their son.
His point was that financial settlements should consider both monetary and non-monetary contributions rather than looking only at whose name appears on property documents.
Divorce does not automatically end liability for joint loans
Another important issue is what happens to financial liabilities when a marriage breaks down.
Kaushik explained that both co-borrowers remain liable for a joint home loan even after separation. A divorce settlement between spouses does not automatically change the lender’s rights under the loan agreement.
If one spouse stops paying their share of the EMI, the bank can still pursue the other co-borrower for repayment.
One option is for one spouse to buy out the other’s share and refinance the loan in their individual name. Alternatively, the property could be sold, the outstanding loan repaid and the remaining proceeds distributed according to the settlement.
For personal loans, an individual is generally responsible for their own borrowing. However, if the other spouse has signed as a guarantor, they could also become liable in the event of default.
Kaushik cautioned couples against signing as co-borrowers or guarantors without understanding the financial consequences.
Women’s wealth creation should begin from day one of marriage
A recurring theme throughout the discussion was the importance of ensuring that women participate in wealth creation.
Kaushik said women are often left behind financially because a substantial portion of the family’s wealth is created and held in the husband’s name.
He emphasised that a woman’s wealth creation journey should begin from the day she gets married, irrespective of whether she earns an income. Gifts received from relatives should be properly documented and recorded in her name. Couples should also consider building investments and retirement savings in both spouses’ names.
He highlighted the importance of women preparing their own wills rather than assuming that their wealth will automatically pass to the people they want to inherit it.
Financial infidelity can damage a marriage
In his concluding remarks, Sadagopan highlighted another problem that often goes unnoticed: financial infidelity.
He observed that in many families, one spouse takes the lead in managing finances while the other remains largely unaware of investments, liabilities and financial decisions. Sometimes, one spouse may also withhold information about transactions or borrowings.
Such information asymmetry can create serious problems, particularly when the spouse managing the finances is no longer around. It can also lead to disagreements and separation.
He recommended that both partners understand the family’s financial position and participate in reviewing it at least once a year.
The larger takeaway is that financial planning within a marriage should not be left to just one person. Both spouses should know what the family owns, what it owes, where important documents are kept and how wealth can be accessed when circumstances change.
