The Benefits Of Having Separate Accounts When You’re Married

A common assumption about marriage is that you share everything – even a bank account. If you feel that way, you’re not alone.

Around 43 percent of couples in the US have a joint bank account that allows them to pool money for marital expenses. However, a growing number of people are deciding to keep separate accounts once they get married.

Although there’s no specific way that a couple should manage their finances, doing so can offer a number of benefits. Not to mention, it’s true that finances are a vulnerable topic in any relationship.

In fact, one study shows that disagreements over finances are a significant predictor of divorce. So, let’s have a look at why you should have a separate account from your spouse.

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1. You’re Not Accountable For Each Other’s Debt

In cases where you enter the marriage with debts on your own, your lenders can target a joint account as long as it has your name on it.

Similarly, if you or your partner are defaulting on certain debts, pooling all your money in a shared account means that it will show up on both of your credit scores.

It’s best to pay off your debts with separate bank accounts to prevent this from happening.

2. It’s Easier To Divide Assets In The Event Of A Split

Although no one likes to think about getting a divorce, having separate accounts makes it less of a hassle when it’s time to part ways.

When one spouse only has a joint account and the other has a separate account, it can tilt the balance of power in the other’s favor.

At the very least, having a separate account gives you access to cash flow in case of a separation. This is especially useful if one spouse limits access to joint funds because it eliminates the need to get court orders so they can pay basic expenses.

3. You Maintain A Sense Of Independence

Nowadays, most people who get married do so at a later age, so they’ve already accumulated some savings. Putting these savings in a joint account can allow you to retain a sense of independence.

Additionally, having a separate account means that you won’t need to ask for permission before each purchase – something that’s often the case when you have joint accounts.

4. Both Partners Can Stay Updated With Finances

In long-term relationships, it’s common for one spouse to take the lead in budgeting and managing finances. While this may seem like the most efficient way to do things, it leaves the other spouse vulnerable in the event that the financially-literate partner passes away or is incapacitated.

Keeping a separate account allows you to manage finances without

5. You Can Keep Past Financial Obligations Separate

In second marriages, you or your spouse may have financial obligations from a previous marriage, such as school tuition or child support.

In this situation, having separate accounts is highly beneficial because otherwise, the court may target your joint account and garnish your hard-earned money to pay for these obligations.

Also, it prevents you from having to contribute towards expenses you’re not responsible for – something that can lead to resentment in the future.

6. You Avoid Arguments About Spending

Money is a sensitive topic because no one’s perfect when it comes to managing finances. It’s possible that you and your partner grew up with different financial backgrounds, which can impact your perception regarding money. So, when you have different spending habits, it can lead to disagreements over finances.

These are easily avoided by keeping money for personal spending in a separate account.

Having Joint And Separate Accounts

Luckily, there’s no need to choose between keeping joint or separate accounts. You can easily adopt a combination of both to stay on top of marital and personal expenses. For instance, you can transfer money into a joint account for shared payments such as utilities, childcare, or mortgage.

Of course, when there are more accounts to manage, you and your partner will need better communication as to how much each person will contribute towards the joint account.

FAQs

Here are some of the most commonly asked questions about keeping separate accounts.

What Should I Do If My Husband Wants Separate Bank Accounts?

Your spouse wanting separate accounts doesn’t need to be a deal breaker for your relationship. If you have concerns, it’s best to communicate them so they know where you’re coming from. This can involve asking him how he intends to split the money for shared marital goals and expenses.

Being on the same page about finances ensures a sense of transparency.

Can Your Spouse Access Your Bank Account?

If you have a separate bank account, then only you can access the funds in the account. No one else – even your spouse – can access your funds.

Can I Empty My Bank Account Before The Divorce?

It’s safe to empty your account before divorce if it’s considered separate property in your state or if it’s part of the prenuptial agreement. If neither conditions apply, you can still remove the funds from your account, but it can impact the judge’s decisions during the divorce proceedings.

Usually, it’s best to consult your divorce lawyer before making such decisions.

How To Separate Money In Bank Account?

The best way to do this is to put a certain percentage of your paycheck into a joint account for shared expenses such as groceries, mortgage payments, and bills. You can keep the remaining in separate accounts for personal spending purposes.

Bottom Line

Overall, there are plenty of benefits that come with having a separate account when you’re married. It’s an effective way to put your savings aside and avoid additional debt in the form of your partner’s student loans or credit card payments.

At the same time, you can build your credit score on your own while maintaining autonomy and working on your budgeting skills.