I Need Advice: Should Married Couples Have Joint Accounts?
One of the largest decisions you'll make after getting married is how you'll handle the finances. And many people wonder whether married couples should have joint accounts.
Unfortunately, there isn't a single answer to the questions because they vary depending on both partners' personalities, spending habits, and financial goals. Some couples do great with only joint bank accounts, while others need to maintain separate accounts.
Here's what you should consider when deciding whether you and your spouse should keep your money separate or combine finances when you join hands in marriage.
What Is a Joint Bank Account?
A joint bank account is an account two or more people own together. Every person named on the bank account has ownership and full access to the account.
For example, when a husband and wife own a checking, savings, or money market account together, either party can make deposits or withdrawals without the other person's permission.
This can be good when you and your spouse are on the same page financially, but if you don't agree on how to handle money, it may cause problems.
The key is to know how you and your spouse handle money, the beliefs each person has about finances, and what will work best between the two of you.
What Percentage of Married Couples Have Joint Bank Accounts?
Almost 65% of married couples have joint bank accounts without holding any separate accounts. However, as much as 15 percent of couples have strictly separate accounts, and the remainder have a combination of joint and separate accounts.
This could be a joint checking account along with separate checking accounts or a joint checking account with each person owning their own savings account. The possibilities are endless.
Should Married Couples Have Joint Accounts?
There isn't a rule, law, or even practice that states, 'Yes, married couples must have joint checking accounts.' It depends on your relationship and how each person handles money.
As I said earlier, approximately 20% of married couples have a combination of joint and separate accounts. This gives couples the best of both worlds.
You have money together to handle joint expenses, but you still have some privacy and autonomy to do what you want with some of your funds.
However, some couples prefer having only a joint or separate checking account. There isn't a right or wrong way to do it, as long as it's what works for you and your spouse.
It can take some trial and error, especially after getting married. You may not know what works for you, but you can try both ways to see which works best.
If you need help deciding or organizing your finances, schedule a consultation with a financial coach.
Joint Bank Account vs. Separate Bank Accounts
When deciding if your marriage should have joint or separate accounts, it's important to understand the differences.
Unlike a joint or shared bank account, a separate account has a single owner.
For example, if you only own a bank account in your name, your spouse doesn't own any part of it or have access to it. The account will only have your name on it, and your spouse cannot deposit or withdraw funds.
So why would couples consider separate financial accounts? Here are a few reasons:
Each person has full control over the money in their separate accounts
Some people prefer privacy when dealing with money, especially if one partner makes more than the other
Having separate accounts reduces the risk of fighting about spending habits
There's no need to be responsible for a partner's personal expenses or debt
But there are downsides to having separate accounts:
The non-owner cannot access the funds, even in an emergency
It can be challenging to track shared expenses
May not allow a feeling of closeness or shared goals
Pros and Cons of Joint Accounts for Married Couples
Like separate accounts, joint accounts have pros and cons for married couples. Here's what to consider.
Pros of Joint Bank Accounts
Both partners have more transparency regarding spending habits
It may be easier to manage and track household expenses
Creating a budget is easier with one bank account
It may create a closer bond between you and your spouse
Cons of Joint Bank Accounts
It can be challenging to have any surprises or privacy regarding your finances
Each person's spending habits affect the household finances
One partner may be forced to pay another partner's debts
Tips To Manage Joint Bank Accounts With Your Spouse
If you and your spouse decide to have a joint checking account, here are some tips to help keep the peace:
Create a Budget Together
Putting all your money in one account means you must know exactly where every penny goes so you can pay your bills. Creating a budget together is a great way to keep both partners accountable and ensure you both understand what's needed to pay bills.
Set Financial Goals
Both partners may have different financial goals, but that doesn't mean you can try to achieve all of them. Compare your goals, prioritize shared goals, and determine how you can work with the others so both partners feel seen and heard.
Set Spending Rules
If you only have a joint account, be sure both partners agree on spending limits. For example, you may have a set amount that you both can spend, but anything else needs to be discussed together.
Set Roles
Putting your money together may be the right option, but ensure you set specific roles for each person. For example, one partner may pay bills while the other balances the checkbook. Giving 'jobs' makes each person accountable and keeps them informed.
FAQs
Is It Better for a Couple To Have a Joint Account?
Some couples do well with a joint account, and others argue too much and need separate bank accounts.
There's no right or wrong way, and one way isn't better than the other. It depends on your relationship with one another, the level of trust, and how each person was brought up with money.
Do You Have To Be Married To Have a Joint Bank Account?
You do not have to be married to have a joint bank account. Two adults can open a joint account regardless of their relationship. Just know that either party named on the account has full access to the funds.
How Can Couples Decide if a Joint Account Is Right for Them?
Couples should discuss how they want to handle finances before getting married.
Some people will already have strong feelings about having completely separate accounts or joining funds, and others won't know until you sit down and discuss each person's beliefs regarding money and how to handle it.
Sometimes, it's about trial and error, meaning you try one way, and if it doesn't work, you switch gears.
How Can Couples Transition From Separate Accounts to Joint Accounts?
You can transition from separate to joint accounts as quickly or slowly as you want. You can open a brand new account, and both partners can transfer their money there, or you can add the other partner to an existing account that one partner already owns.
Just make sure you cover any existing withdrawals or bills from your current accounts before closing them for your joint account.
Are There Alternatives to Joint Accounts for Managing Shared Finances?
A hybrid financial management method is the most common alternative to a strictly joint account. This means you have a joint account for shared expenses and separate accounts for all other spending or savings.
This is often the middle-ground for couples unsure how to handle their personal finance decisions when getting married.
Does Having a Joint Account Ensure a Happy Marriage?
A joint bank account may help you and your spouse feel closer, but not always.
Some couples prefer the privacy of separate accounts or don't want to comingle their assets quite yet. Money is a big part of any marriage, but it shouldn't define your happiness.
If you and your partner are unsure if you should have a joint or individual account, consider a financial coaching appointment to help you both understand your thoughts about money, how to handle it, and the best way for you and your spouse to move forward.
Want to level up your game around money in your relationship? My free quiz will help you learn your Couple’s Money Personality Type AND how you can grow from there!
Adam Kol is The Couples Financial Coach. He helps couples go from financial overwhelm or fighting to clarity, teamwork, and peace of mind.
Adam is a Certified Financial Therapist™, Certified Mediator, and Tax Attorney with a Duke Law degree and a Master's in Tax Law from NYU. He is a husband, dad, and musician, as well.
Adam's wisdom has been shared with The Wall Street Journal, the Baltimore Ravens, CNBC, NewsNation, and more.
