You vowed till death do us part at the altar — but does that have to extend to your money, too? Not necessarily.
Increasingly, many married couples are opting to keep their finances separate, at least to some extent. “Between 1996 and 2023, the share of married homeowners with financial assets who held at least one joint account, such as a checking or savings account, dropped from 85% to 77%,” said The Washington Post, citing Census Bureau data. Instead, “couples are opting for individual accounts alongside or instead of shared ones.”
There are definite pros to this approach. But there are also downsides, and couples should consider both before deciding to go financially solo.
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Pro: provides greater financial independence and protection
Perhaps one of the biggest reasons couples decide to keep separate accounts is to maintain some sense of independence — and in the case of divorce, to have an easier path out. Having a separate account as an “emergency fund” allows you to “protect yourself if your relationship turns sour,” said U.S. Bank. It also ensures that you avoid a “common scenario where a partner legally drains a joint account without the other’s knowledge.”
Con: detracts from financial alignment and transparency
As the saying goes, teamwork makes the dream work, and merging finances can encourage that. “Instead of keeping a running tally of who spent what or operating their married lives like they are college roommates,” couples who share accounts “tend to focus on their collective needs, supporting one another without worrying about an immediate or equal payback,” said the Post. Plus, shared ownership ensures that both partners are aware of and have access to the full financial picture.
Pro: minimizes conflicts over spending
“Nobody wants to scold or nag, but it’s hard to hold your tongue when your significant other is a spendthrift — or its opposite, a penny-pincher,” said TIAA. While at least some level of financial alignment is integral to a marriage, separate accounts give both spouses a bit more breathing room when it comes to discretionary purchases.
Con: makes covering bills and expenses more complicated
When there is just one pool of money to tap for costs of living, it is straightforward to simply hit “pay.” But when the funds are divided between different accounts, it takes more figuring out. While certainly possible to navigate, couples with separate accounts will “need a system for splitting monthly bills, whether through regular transfers, payment apps or rotating responsibility,” said SoFi.
Pro: keeps separate debts separate
If you “wind up merging all your finances — credit cards, too — you could be on the hook for your partner’s spending habits,” said Bankrate. This may leave your hard-earned money on the line, not to mention it can impact your credit score, if your spouse falls behind on making debt payments. A separate account will shield you from that liability.
Con: makes money more difficult to access in an emergency
With a joint account, “by having each of you listed as an authorized account holder, you won’t need to jump through any hoops to access your money if the other is unavailable,” said Bankrate. However, when your accounts are all separate, “if one partner becomes incapacitated, the other may struggle to access needed funds,” said SoFi.
