We derive the complete set of macroscopic dynamic equations for ferrofluids in the nematic liquid crystal phase under an external magnetic field. We include the magnetization as an independent dynamic degree of freedom. Special emphasis is laid on possible static and dynamic cross couplings between magnetization, director reorientations and flow. As examples we discuss the field dependence of the sound spectrum and the rheology of shear flow. (C) 2003 American Institute of Physics.