Should Spouses Combine Finances?

I think I have posted before that I'm getting married soon. Since read recently that money is the number one conflict in most marriages. In preparation for my wedding I have been reading up on whether spouses should combine their finances.

My fiancee and I have similar spending habits and stay on the same page about most things, so I assume we will end up combining things to keep everything consistent and easier. It looks like it is getting more common for couples to keep everything or most everything separate. According to MSNBC, about 1/3 of women now have a brokerage account of their own separate from their husbands.

I've compiled a list of pros and cons that I think my fiancee and I should consider when talking it over.

Pros:

• All about the "we": Of course this can also cause fights in a relationship, but staying on the same page and working toward the same financial goals can be rewarding. Even if there are occasional bumps. If you're working together the finger pointing can be kept to a minimum.
  

• It's easier: As a matter of efficiency, I think it is easier to combine your accounts. There should be at least a few things that become more efficient when you get married. You only rent one place instead of two, can sometimes get away with one car, and I don't want to deal with two brokers who don't think I have enough invested with them to take time out of their day to manage my investments.
  
  
• Consolidate for better returns: If you combine your funds into a few accounts you might be able to reduce fees by having higher balances, get better returns, have better service from your broker. Some brokers have accounts with $2,500 or $3,000 balances which can be met sooner if you combine funds. There are also a lot of companies that have sliding scales that have rates that are higher as balances increase.

Cons:

• Probate Problems: If your spouse dies (depending on what state/jurisdiction you live in) any accounts may be frozen in their name. It's really important that you have some money in your name to pay a month or two of expenses if tragedy strikes. Probate is a painfully slow procedure. A good attorney can minimize problems, but it won't be immediate more than likely.
  

• You Credit History: When one partner handles all the financial issues things can go smoothly, but then again if you ever separate or your partner dies - you won't have much of a credit history. If you do combine finances you should at the least keep a credit card or two in your name to keep your credit healthy.
  
  
• A Jealously Issue: Some people look at keeping finances separate as a lack of trust. While this can be the case for people who think their spouse is a poor money manager, it isn't always the case.
  
  

Whatever you decide talk things through. What works for other people doesn't for others. The Simple Dollar has tips for talking to your spouse about combining finances. Another possible solution would be to direct deposit the vast majority of your paycheck into a joint account with a small fraction to a separate personal account for each spouse. This way you stay on the same page, but each have some freedom to save, invest or spend your share as you please.

Links
Separate Accounts Save Love Life @ Guardian Unlimited
The Color of Money (realplayer) @ NPR
Marriage till Debt Do Us Part @ USAToday
Q&A Couple Finance @ LongRelationships