Understanding Financing Terms

The Advantages Of A Joint Checking Account

When you get married, you will join all of your assets together. If you aren't sharing a bank account, you may feel that having the same bank account can be another step in forming a union. Some couples will keep separate bank accounts, others will merge their bank accounts together, and some couples will have both a shared checking account and separate accounts. There are upsides and downsides to each decision.

Accessing Money

When you have a joint bank account, both you and your partner have access to money when you need it. When you both trust each other and agree to how you should spend your money, you will find it more convenient to share a checking account. This can also be used as a symbol of trust. However, if you don't agree with how to spend your money, you may find that sharing finances can lead to more disagreements and conflicts. 

Death and the Estate

Some processes are much faster when you share a bank account. For example, if one of you passes away, the other partner will have access to his or her bank account. This is useful if one partner passes away. Otherwise, the other partner might be left unable to pay bills until he or she has gained access to the bank account through a will.

Avoiding Surprises

While you may be concerned about how your partner might spend money initially, you'll be able to see what money goes into and out of the account. You'll not have any financial surprises. For example, if you pay monthly rent with a check, you'll be able to see that amount coming out of your account every month and will know if rent isn't paid. 

Discussing Finances

If you're concerned about how money is being spent out of the checking account, this is an opportunity to discuss how you are spending your money so you can overcome financial issues together. Financial issues are a leading cause of divorce.

Maintaining Separate Accounts

Some couples will have a joint checking account and will also maintain separate bank accounts. The separate bank accounts can sometimes create trust issues, since your partner might wonder why you'd need a separate account. However, it may also help build trust by knowing that you have your own reserve funds to fall back on in the event of a divorce or some other change in your relationship.