It is often assumed that a couple will have a joint bank account. After all, the money belongs to both equally, regardless of who earns it. However, there are times when it’s better not to have joint accounts, but it does depend on many factors. There is no one right way.
Let’s take a look at the pros and cons of joint bank accounts.
A Joint Account Promotes Trust and Cooperation
There is no hiding anything if you have a joint account. This means that it can promote trust since there are no private expenditures when you have only joint accounts.
It is also more difficult to conceal financial problems if both spouses can see the contents of the joint account.
A joint account makes it easy to split financial chores evenly. One spouse may oversee paying bills, while the other reconciles the monthly credit card statement. When both spouses/partners have equal access to their money, it is less likely that a single partner will take on all the financial management tasks.
Everything in One Place
If it’s all in one place, it’s a lot easier to keep track of since either of you can access the accounts. You’ll know at a glance what savings you have, investments, and the balance in your checking account.
Simpler Legal Process
In the unfortunate event something happens where your partner passes away, you don’t have to go through a strenuous legal process to have access to their money. This makes one less thing you would have to worry about during such a somber and stressful time.
Lack of Control
You cannot control how the other party spends your money. If your partner decides to spend frivolously, you will both feel the blow. This sort of problem can lead to many fights about what is necessary to spend on and what isn’t. More of these issues may arise if one party brings in more income than the other.
One Partner’s Debt Could Be an Issue
Now that you are merged into one account, you need to be open to your partner paying his or her individual debt from your joint account. Student loans, credit card debt, and other expenses of the sort fall in to that category.
If you make more money than your partner, you need to feel comfortable with a portion of your income going toward your partner’s debt. Talk to your partner and have an open conversation about your respective debts, and how you’ll pay them down.
Less Privacy and Autonomy
Having only joint accounts can make it hard for the partners to buy gifts, plan surprises, or do things that they want to do without judgment from the other partner. That’s why there should always be some fun money for each partner to spend on whatever they want.
Final Word
Whether you choose to have separate accounts or joint accounts, you can still accomplish your financial goals. There is no one right way to achieve your goals.
Each couple must figure out for themselves what works best for them. Most of the time a compromise and division of responsibilities is the answer.
The Money Savvy Blog 