One of the many things about marriage that has changed in recent years is that an increasing number of married couples are deciding to keep their finances separate rather than use joint bank accounts. One of the many reasons behind this trend is that more people are getting married later on, which means they are financially independent for a longer period of time and less inclined to give away this freedom. No matter which option a couple chooses, however, there are advantages and disadvantages.
Keeping Your Money in Separate Accounts
Marriage is a lifelong commitment, but some couples discover that it is a better idea to keep their finances completely separate. If you value your financial independence or have another reason that makes you value keeping separate accounts, this method is the best choice. Separate accounts often allow couples the advantage of splitting up multiple bills including groceries and utilities. To avoid the impression that a spouse is hiding details about what is or is not in bank accounts, it is critical to have honest conversations about financial positions if you decide this method.
Combining Your Finances with Joint Accounts
Some couples feel that sharing their entire live with a partner is one of the essential parts of a successful marriage. Having joint accounts also offers the advantage of making the couple’s household easier to manage because everything goes into and comes out of shared accounts. Another advantage of using joint financial accounts is that with two people monitoring your account, you will be more likely to notice mistakes that might occur with your account.
Use Both Personal Accounts and Joint Accounts
Some couples decide to use one or more joint accounts for bills that are shared between the couple as well as individual accounts to pay for individual expenses. The primary advantage realized through this option is that joint accounts make it easier to manage household costs but each spouse still has the ability to keep some individual financial arrangements separate.
What Joint Accounts can Mean
Discussing joint accounts is not possible without understanding the potential repercussions that joint accounts can have. Each person who has ownership in a joint account has the full legal right to access the funds. Also, if a person is sued or defaults on payments, there is a significant risk that the money in a joint account will be seized. The difference between joint and separate accounts can have a profound impact in cases of divorce or the unexpected death of a spouse. It is important to remember that while separate accounts often offer additional protection from being seized during a divorce, this is not always true.
Contact a Knowledgeable Family Law Attorney
Disagreements about finances is one of the most common reasons why marriages end. No matter what types of financial decisions you make, before executing these plans, it is often a wise idea to speak with an experienced lawyer. Contact Vayman & Teitelbaum P.C. today for assistance.