ProConnect

5 Things To Consider When Opening Up A Joint Account

By

5 Things To Consider When Opening Up A Joint Account
The pros and cons of having a joint account.

A joint account can make or break marriage. Couples must be able to discuss some of the pitfalls associated with having a joint account.  Money matters are a delicate subject; they can turn a happy home into a nightmare. A joint account may also lead to openness in a relationship and can help spouses build trust. 

Couples who open a joint account and take out a loan through the account must realize, the bank,  holds both parties liable for the loan, regardless of used the money.  Both are entitled to the account and are equally liable in case they are unable to pay. If one party is not satisfied with the arrangement, he or she may opt out by notifying the loan holder, but only after the loan has been paid. 

More from YourTango: 5 Tips On How To Run A Successful Business

Some couples have other personal accounts in addition to the joint account. I have personally witnessed a few instances where one spouse has ripped of the other, by emptying out the account and leaving the other to pay off the loan. This sort of behavior often leads to divorce.

I have also witnessed couples, who have used the used the joint account, as way to build trust in the relationship.  This practice encourages accountability and financial discipline amongst each other.

Couples should set some ground rules that both must follower. For example, how much should be deposited in the account each month, how much can be withdrawn and what should we use it for. It should be made crystal clear, how the money should be spent in the beginning: new home fund, vacation fund, college tuition, etc.

Things to consider when before opening up a joint account

Your spouse must be a person of character in order for the account to be a successful venture. Remember, this not only a business venture, it’s also a test of your relationship as a couple. Keep these tips in mind before you open the account. 

1. Set a goal
Have an idea about how much money you want to save in the account and don’t waiver from that goal.  

2. What is the contribution amount?
Both parties need to agree on a set amount they’re willing to deposit and when. Make sure both parties are comfortable with the amount of the deposit.     

3. Pick an institution
Make sure utilize you an institution that is convenient for both of you.  The bank or savings in loan should be easily accessible for both of you.

4. Open an individual account
It is important to have a personal account that doesn’t interfere with the joint account or any bills. This is a savings account and that alone. This is not for miscellaneous spending.

More from YourTango: 5 Signs And Symptoms Of Uterine Fibroids

5. Know the rights survivorship
Must joint accounts carry rights of survivorship. If one of the joint holders dies, the survivor automatically has rights to the money. On the flipside, the survivor will also be liable for the decease’s debt.  

In conclusion, if you trust someone enough to share your life with them, you should trust them enough to share your money. Remember to always be open and honest with your spouse, and expect the same in the return.

Share this with someone you love (or even like a lot)!

Let's make it
FB official
Article contributed by
Advanced Member

Marshon Thomas

Life Coach

Too blessed to be stressed and loved by the best!

Location: Brentwood, CA
Credentials: Other
Specialties: Matchmaking
Other Articles/News by Marshon Thomas:

5 Tips On How To Run A Successful Business

By

  To help you become a successful entrepreneur, I've gathered priceless information that will help you succeed. Feel free to use some are all of them and I hope this information will prove be invaluable to you in your in business endeavors. 1. Find a mentor- I can tell you first hand that finding a mentor is one of most important steps in being ... Read more

5 Signs And Symptoms Of Uterine Fibroids

By

Uterine Fibroids is an epidemic among African American women. 80% of all African American will get Uterine Fibroids. The forthcoming 'The Decision' is one of the first films to even broach the subject. A study concluded that fibroids are three times more common in African American women than Caucasian women. Fibroids are larger and may occur at a ... Read more

10 Things You Should Know About Spike Lee

By

Spike Lee announced on July 22, that he would be using Kickstarter, to raise $1.25 million for his next movie project. Lee has not announced the title as of yet and refers to it as the "Newest Hottest Spike Lee Joint." The new feature is about "human beings who are addicted to blood." Lee wrote this on his Kickstater page, "It's not ... Read more

See More

Recent Expert Posts
Fighting

Put Your Relationship on a Diet Free of Blame and Criticism

Replace the blame and criticism in your relationship with heartfelt gratitude and appreciations.

Smooches

Why You'll Never Meet The Right Partner

Give up the search - and figure out how to actually create love instead.

Trouble In Paradise

The Honeymoon Is Over

Making marriage work post honeymoon phase

Ask The Experts

Have a dating or relationship question?
Visit Ask YourTango and let our experts and community answer.

Resources
How to find the right pro for you
10 Reasons Mental Health Pros Should Join YourTango Experts

10 Reasons Mental Health Pros Should Join YourTango Experts

YourTango Experts can help your business go from good to great.

10 Steps To Improve Your Coaching Business

Take your coaching business from mediocre to great in no timeā€¦

Frequently Asked Questions About YourTango Experts

Thinking of joining? Here's all the facts you need to know to make the most of your membership.

Getting Your Guy To Join You In A Therapy Or Coaching Session

So how can your get your strong, self-reliant, superman to talk to an Expert with you?

Therapist/Counselors: Who We Are & What We Do

What exactly does a therapist/counselor do and can they really help?

See more resources>
HOT STUFF!
FROM OUR PARTNERS