Splitting Bills and costs has proven itself challenging in relationships both business and personal. The cause is the fact that people have different interpretations on what constitutes being "FAIR." One person may try to get over the ignorance of another, One person may try to weasel their way out of their fair share of the expenses. Some people just don't know, and go with the default of the 50/50 split. But if the Household income isn't equal, is the payout equal using the 50/50 split?
THE EXAMPLE SHOWS THAT EACH PERSON IS SPENDING AN EQUAL PERCENTAGE OF THEIR INCOME ON THE HOUSEHOLD BILLS. They are both spending 30% of their income on the monthly bills. On the left you see the 50/50 bill split method. Bill payer #2 is paying half their income towards the monthly bills. This would be where the arguing will take root in relationships or marriages. 1 person wants 50/50 bill sharing and the other one is experiencing hardship because the household expenses doesn't leave them much for personal expenses.
To be fair, the proper way to split bills would be based on the PERCENTAGE of income each person brings to the table. On the right, you see how each bill payer comes up with their percentage of the bills by taking each person's individual income and dividing it by the total household income.
If you want to split expenses down the middle, is a set up for a roommate agreement where no one is concerned about who makes what. If you are coupling and have goals of progression in place, you focus more on what's good for the household and not each as an individual. When both people have freedom to breathe, there is less stress in the house.
Finances handled badly or no communication regarding finances when joining households is a major contributor of arguments. 50-50 only works if each person is averaging the same income. A meeting of the minds has to take place regarding goals and the arrangement of expenses before marriage or shacking so everyone is on the same page.