In theory

IN THE extreme form of this model, the two partners hold separate accounts and keep their salaries and expenditure a secret from each other.

They split household expenses, such as mortgage repayments and the kids' education, equally.

One way to do this is contributing an equal amount every month for joint expenses.

Alternatively, the partners can divvy up the spending categories - car loans, food, utilities and so on - depending on their relative earning power.

The house and car may be in only one spouse's name, if that spouse is the only one paying for the loan or the one contributing the lion's share.

In practice

Ben and Pam are a high-flying couple in their 30s who work around the clock on financial deals from New York to London, Tokyo to Singapore.

Because of their hectic work schedules in different companies, the two financial whizzes never felt a need to combine their accounts.

They drive their own cars, split joint expenses and live in Pam's apartment when they are in Singapore or Ben's properties when they meet overseas. They swop tips about annual bonuses and investment portfolios, but not much more.

'We do know each other's passwords for frequent flyer mile accounts though!'' quipped Ben during a spirited 12-minute conference call with his wife and this reporter. He was in Seoul at the time, while she was in Ireland.

The couple said their cost-benefit analysis - which looked at factors such as the psychological benefits of feeling independent and in control of one's own financial decisions - favoured a separate account model.

'We have no joint loans, and we don't believe in keeping money idle in joint accounts. It makes practical sense for us to handle our own finances since we don't live together 24/7, and our individual incomes are large enough to support loans and even joint expenses,' said Pam.

'We're both generous people and like giving treats, so money disputes never crop up,'' she added.

But things could change if they eventually settle down in one place.

'Pam's career might be affected if we have kids, so we will work out an equitable way of sharing income and joint expenses. And estate planning is hard to do when we don't know each other's savings or income,' said Ben.

Pros

- Initially, both spouses might feel financially independent. Neither would feel controlled by the other.

Cons

- Keeping secrets could create barriers in the relationship over the long term.

- Potential disputes could erupt over joint expenses or jointly-owned items.