I've had this discussion with my girlfriend. We've agreed it's best to have one account for bills and so-on, and then another account for spending money. That way you can buy what you want without getting in trouble.
The downfall of lumping it all together (the other idea) is accountability- you have to tell each other about everything you spend money on. My parents do the method your fiance has suggested... and I think it isn't the best idea. Especially when one parent is free-spending and the other is a penny-pincher. This method works only if you have the exact same spending habits and ideas.
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REDVAN!
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