Separate Checking Account?

Everyone knows that money can be the impetus to ruining relationships, but does anyone really considering when getting married. Of course some do, but most do not consider their money situation before they marry.

It is one thing to get a joint credit card and another to get a joint checking account. The former deals with spending money (which is a whole other problem facing couples) and the latter deals with earning money. Let’s face it, men’s egos are often fragile when it comes to earning less money. So if his wife brings home a larger paycheck that can genuinely hurt the relationship because although our society has evolved, it is not to the point where it is 100% acceptable for the man to make less than the women.

This obviously is one one instance that can divide a couple when it comes to the subject of money. Most importantly is to figure out what situation you both are comfortable when it comes to your checking account.

• Separate checking accounts for everything outside of shared expenses
• One joint checking account for all the money
• 100% separate checking accounts

All three options are viable, but you really need to hash out what will work for you as a couple. If one is a spendthrift and the other frugal, a one joint checking account might cause friction. 100% separate checking accounts causes more paperwork, but works for a lot of people. Separate checking accounts for everything outside of shared expenses is very popular because each person needs to come up with their share of the expenses, and after those obligations are met they can spend the excess on whatever they choose. This requires a lot of trust as well as do the other options, because not always knowing what the other is doing with their money can causes problems as well.

So if you are about to get married you need to have this conversation to nip a potential money problem in the bud before it is too late.

Written by Nagel on April 3rd, 2007 with no comments.
Read more articles on Banking and Household.