Why Every Couple Needs A Joint Account

June 16, 2015

I was recently talking to a couple that I initially thought was talking to me about their debate over getting a joint account. But as each of them spoke, they may had been looking at me but what they were saying was clearly directed at the other person until they forgot I was in the room and they just started arguing. I then remembered some guidance my buddy Kelley, a fellow financial planner, wrote about joint accounts and shared the following guidance from her:

“When it comes to money and marriage, there are a wide range of things to consider when figuring out how to manage the household finances. Disparate incomes, differing spending habits, kids from previous relationships, etc. are all factors that must be considered in how a couple handles their money. However, when it comes to whether or not a couple should have a joint account, I think it’s a must no matter what the situation.

That doesn’t mean I think they should go all-in and ONLY have a joint account. In fact, I feel quite strongly that each person must maintain his or her own separate account as well. But in order for money to work in the marriage over the long run, a joint account needs to come into play. Here’s why:

Convenience. Joint bank accounts make it much easier to manage shared expenses. It saves from the whole, “Whose turn is it to pay?” argument while in line at the grocery store, and also keeps spouses from having to PayPal each other, which can feel more like roommates than spouses.

Fewer money fights. Having a joint account allows couples to draw clear lines around what’s a shared expense and helps to quell fights around who pays for what. For the most part, as long as you’re putting enough money into the account to fund your bills, you can set recurring monthly bills like mortgage payments, utilities and even credit cards on auto-pay. Then the only question is figuring out how much you should each contribute to the account. At least one person has to keep an eye on the account to make sure there are no errors or overdrafts, and I think that both partners should be checking on the account regularly.

Shared responsibility. In relationships where one person is significantly more diligent than the other about money, it is easy to completely delegate finances to the money-minded spouse, especially if they decide to go all-in with just one joint account. However, I caution against giving up total responsibility. Should something happen to the family bookkeeper, you could find yourself in a tenuous situation with learning how to manage household finances while also dealing with the stress of an emergency situation. Sharing certain financial responsibilities also helps to reinforce the idea that “We’re on the same team,” especially in newer marriages where couples are still getting used to the idea of having a “second opinion” around their finances after years of financial independence.

Finally, to make shared accounts work, communication is key. It’s important to set regular money meetings to make sure you’re both in tune with the big picture and to ensure that you both know how to pay the bills, even if only one of you actually performs the function. You should also both know how to log into the account and how to access the funds should you need it.”

What do you think? How have joint accounts worked in your relationship? Leave your thoughts in the comments section below.