subject: Don't Let a Joint Account Cause Problems [print this page] Don't Let a Joint Account Cause Problems Don't Let a Joint Account Cause Problems
As it is more common to have couples-fighting couple who are not married co-habitating and sharing financial responsibilities before marriage, it certainly pays to start out on the right foot if you are planning to share a life as well as a bank account.
Time and time again, there are reports of divorce caused by money woes and sadly financial concerns have even been found to be the basis of even more serious domestic issues. Making a commitment to another person is a big step and one just as important as your financial welfare.
So how can you make joint financial responsibilities work for both of you without needing a crisis interventionist? Let's take a look at one aspect of joint financial obligations - the joint checking account.
Elect An Officer
While you will both be responsible for what happens with the bank account, only one person should be elected as the account manager. There is no specific criteria that makes one person better suited for the job than the other. Perhaps you want to elect the person who has the most time to devote to consistent management of the balance or maybe you want to rely on the person who is better at math. Who ever is elected as the candidate will need to have patience, be detail-oriented, and be the person that wants the job. If the wrong person is elected to handle the accounts, it can quickly become a big issue in the relationship, causing bitterness and mismanagement of the account.
Be Respectful
Just because one person has been elected to run the numbers does not mean one person controls the money. Both partners need to be respectful of each other's money management styles. No two people will ever work or think exactly the same. Use the differences to your advantages and learn what combination of methods work for your situation. Discuss how each of you can work together to keep things in order, such as how to retain receipts and when there is mutual free time to go over the finances each week. Placing blame for mistakes will help no one. Work together to make your money work for both of you.
Set Limits
Part of a successful money management system is developing a reasonable budget. Included in that budget should be an amount of money each person gets to spend for daily living expenses. Technically, this would be considered an allowance; however, that term can have negative connotations to some. Set further limits about money decisions. For instance, no person can make a purchase over $100 without first consulting the other party. Set limits that work for both of you. Having one person make up all of the "rules" will not end well.
Don't Shut the Other Out
Open lines of communication concerning money are critical. Hiding overspending incidents or not telling the other person about financial concerns is not acceptable and can lead to high-running emotions. Since the money in question is contributions of both parties, there should never be secrets about finances.
Work Together or Not at All
If you have made the decision to share a joint account and combine your finances, you need to keep it a work in progress. Continue meeting on at least a weekly basis. Keep up with you budgeting methods. Make paying off debts a major priority to free up even more money. Essentially, if you or your partner are not capable of working together on issues this important, you might be better off for the sake of your money and your marriage to keep separate accounts and find a way to manage a fair plan to handle mutual financial obligations.
Tisha Kulak Tolar is a writer for DebtFreeDestiny.com where she regularly writes about debt consolidation, debt settlement and saving money.
