Getting married is a wonderful thing and represents a special time in your life. However, there’s more to do than pick out invitations and choose the perfect wedding venue.
One tough decision you’ll have to make is whether or not to keep your finances separate or have a joint bank account. While joint bank accounts are not right for everybody, they can work in certain situations.
You’re working towards a Common Goal
One smart reason to secure a joint bank account is if you and your significant other are working toward a common, money-related goal.
Perhaps you’re saving up for the honeymoon, saving for a deposit on your new home together, or saving to pay off wedding expenses.
Whatever the case may be, a joint account will allow you and your partner to deposit funds into the account without having to constantly check with the other or having one person do all the work.
Of course, you’ll both be able to withdraw funds as well. But, as long as you and your partner make and follow some clear ground rules about how and when to withdraw money from the account, this shouldn’t pose a problem.
You Have Similar Spending Habits
Before considering a joint account, you and your partner should consider your spending habits.
For a month or so, you both should track all of your spending. How much does each of you spend on “fun” or frivolous purchases? How much does each of you save each month?
If it turns out that you and your partner are very different in terms of how you spend your money, a joint bank account might not be the best idea since it could lead to tensions and arguments. If you’re both similar in terms of how you spend, however, a joint bank account might just work for you.
You Both Have Good Credit
Something else to think about is the credit and overall financial standing of each person in your partnership.
If one person has bad credit and a lot of debt, while the other person has a stellar financial track record, you may want to forego a joint account.
Debt collectors will often go after accounts owned by the debtor, even if they’re shared with an innocent party. In this case, having a joint financial account isn’t really fair to the financially responsible person.
If you and your partner both have good credit and pay your bills on time, though, a joint account should not be cause for concern.
You Want to Protect One Another
Finally, a joint account can be a good way to protect one another in the event of something bad happening. You also have to make big decisions, such as how you and your beloved will handle your finances.
While no one likes to think about it, there is always the possibility that one person in the relationship could pass away unexpectedly or suddenly become incapacitated in some way!
Hopefully, this will never happen to you or your loved one. But, if it does, a joint account ensures that the healthy person will still have access to the funds within the account without having to go through a legal battle or any kind of hassle.
As you can see, joint accounts are not the best choice in every situation. However, they can and do work for many people. Sit down and talk with your partner about where you both stand financially and about whether or not a joint account is right for you. This should just be the first of many important decisions you will make together.