Q&A: Managing bank accounts following marriage

Q&AMarriageFamily

Sep 27

QUESTION:

What is the best way for newlyweds to manage bank accounts as they transition into married life?

Short answer:

The most appropriate approach for managing bank finances varies from couple to couple.

Long answer:

The decision to maintain separate bank accounts or merge together is deeply personal. There is no “right” choice. Instead, select the option that both spouses feel most comfortable implementing. Initiate an on-going, open, honest dialogue soon after engagement to determine the best course of action. A few considerations to discuss with your partner:

1. Accumulated assets: discuss differences in individual savings prior to engagement/marriage. For large discrepancies, it may be appropriate to consider a prenuptial agreement and/or relevant estate planning.

2. Differences in income: think through disparities in both current pay and future earning potential.

3. Common expenses: contemplate logistics of paying for ongoing expenses, such as rent and groceries, as well as one-time expenses, such as date nights or vacations.

4. Shared goals: envision planning and saving for common goals, such as a new home, or future children’s education savings.

Changing perspective from “mine” to “ours” can be major mental mind shift, so remain patient, open-minded, and sensitive.

A note: regardless of post-marriage plans, it is often wise to open a joint bank account following engagement. A joint account serves as the hub to collect monetary gifts received from family and friends throughout celebrations. Keeping joint gifts in a shared account maintains transparency, equal ownership, and access. Click here to read our “Top 3 Financial Planning To-Do Guide: Engagement.”