Money Has Psychological Consequences
A separate bank account after marriage provides self-identity, financial independence, and empowerment. Back in the day, when people married, everything would merge: households, families, and money. A joint bank account was essential – like sharing a bed. Married life is complicated, and maintaining a separate bank account eases financial friction.
The Question of Premarital Savings
Today, Americans are getting married later, with the average age of a first-time bride rising from 20 in 1960 to 27 in 2022. Getting married later ensures bringing not just life experience and wisdom but also more financial assets. Assets acquired before marriage aren’t marital property, so why merge them into a joint account?
The logic also holds true for the (hypothetical) generous $50,000 inheritance that your grandfather left you with. Should this be transferred to a joint account that you hold with your spouse? Should things not work out between you and your significant other, they could claim half of it in a divorce.
What About Premarital Debts
If your spouse entered marriage saddled with credit card debt, student loans, alimony/ child support payments, joint accounts result in your hard-earned savings paying off earlier debts. Joint bank accounts are vulnerable to your spouse’s creditors, while individual accounts protect savings. To avoid resentment later, schedule time to discuss pre-acquired debts and how to deal with them fairly – before marriage.
You Can Spend Your Finances However You Want
Many wives out-earn husbands by a huge margin and abhor the thought of splitting the difference, no matter how educated or progressive. Having worked hard for that money, why can’t they retain it for themselves? Much depends on interpersonal dynamics to decide what income percentages should be considered joint and what shouldn’t.
Without scolding or nagging, what happens if your spouse is a spendthrift or a penny-pincher? Can they stick to a budget? Why be so cheap? Compulsive monitoring of your spouse’s transactions on your smartphone can be viciously addictive. Separate accounts nip this resentment in the bud. It’s better to have separate bank accounts from the start rather than separate them later after bickering over dimes.
With a joint bank account and continued money arguments, return to separate accounts to cease hostilities. Discuss money matters when your spouse is on another planet, personality-wise.
You Might Get Rusty
With couples sharing a joint bank account, the money-savvy partner controls household finances. Some spouses abdicate responsibility if the spouse is better at managing funds! However, this is a workable short-term strategy that fails if you get a divorce or if the more financially literate partner passes away.
Many widows and divorcees struggle with savings, debt management, and basic budgeting, as financial decisions were outsourced to someone else. If separate accounts were maintained, money management skills would be retained. In marriage, you learn to share – but for money-related issues, enjoying the benefits of separate accounts is a key ingredient for a harmonious marriage.
If you do have a family account, the joint bank account can be relegated for common bills and household purchases, for vacations and shared goals. If this works for you, then you must agree on how much you should deposit into these accounts every month. Whether you have separate, joint, or both accounts, communicate frequently and openly and then move forward.
