Do you have a significant other? Do you have an income? Do you have a bank account? Then listen up, because this post is for you!
Is there a benefit to having a joint or separate bank account from your significant other? Let’s look at the pros and cons. According to this Globe and Mail article, the author argues in favor of couples having a joint account. Some of the reasons:
- If your partner dies and you have separate accounts, you may have issues accessing their funds to pay the mortgage, rent, bills, etc. You would need a Will and other documentation to prove you have rights to the accounts
- Helps couples align with spending habits and allows you both access to your finances.
- Both incomes are usually needed to pay for household bills, mortgage/rent, etc. Putting them both into one account provides better financial security.
However, there are also cons about having a joint account, such as:
- Consumer debt re-payment. If your partner has a lot of consumer debt, you may feel pressure about having to pay down their debt.
- Spender versus saver. If one person likes to shop online and go to for food all the time while the other person is a saver, it could create a ton of tension within the relationship. (Finances are one of the top reasons people do get divorced)
- Ensuring no one partner dominates the relationship by dominating the money.
This may surprise you (or not) but we have separate bank accounts. We both have visibility to our overall financials, however, we operate our accounts separately. In order to pay bills and manage the finances, Lindsey gives a portion of each pay check to Tolga and they distribute it accordingly to bills, savings or investments. After all the adult responsibilities are taken care of, we like to have the freedom to buy lunch, go shopping or whatever, without feeling guilty of spending “our” money. We like having the financial independence and we both manage our money differently. Before we got married, we did discuss this and found this was the best option for both of us.
If you are interested on going the separate bank account route, check out this site on the ways to get started. It’ll outline the steps of:
- Sitting down together to set your financal goals and budget
- Dividing up the expenses
- Getting any new accounts or credit cards needed
- Depositing funds as needed to the right places
- Saving the remainder to hit financial goals
At the end of the day, you need to do what’s best for you and your partner. You do need to have proper legal documentation set in place, in case something awful happens and your partner can no longer financially contribute to the household.
On a separate note. We have loved writing this blog and your feedback has been amazing! Thank you! If you’ve been reading this blog and wanted some help with your finances, let us know. Whether you need to get your budget in order or personalized help with organizing your finances, we would love to help. Shoot us an e-mail: firstname.lastname@example.org or email@example.com and let us know!