Separate Checking Accounts and Marriage
Understand the benefits of keeping a separate checking account after saying, "I do"
Saying, "I do" represents one of the largest commitments you'll make in your lifetime. Remember, beyond the emotional bond, marriage is a legal merger of your finances as well.While the decision about how to best manage money during marriage is personal and dependent on situations unique to each couple, there are some things to think about when deciding between separate and joint checking accounts.
Have designated purposes when opening both joint and separate checking accounts
Many couples find that a combination of joint and separate checking accounts can provide them with a balance of shared responsibility, while maintaining financial independence. Discuss opening multiple accounts with your spouse. Open a joint checking account for shared bills and expenses like your mortgage, utility and transportation costs.Use an additional joint interest checking account to contribute money for special purposes like gift giving or funding a vacation. Then, maintain separate checking accounts for personal and discretionary expenditures like socializing and pampering yourself.
The significance of using separate checking accounts for personal spending
Up until marriage, you've likely had a one-on-one relationship with your money. You've decided how to spend it and what to spend it on without scrutiny from another party. Moving forward, relying solely on a joint checking account to finance purchases may mean that you are no longer the only one who gets to choose how you spend your discretionary income. Many couples find that keeping separate checking accounts with specific spending money can really help them maintain their sense of autonomy and avoid unnecessary conflict.
Using a separate checking account to help you deal with the uncertain future
You can't always predict the future. But, you can prepare for it. The last thing you want to worry about after dealing with the loss of your husband or wife is how you will continue to provide for yourself financially. This gets exceptionally more difficult if you find out that the joint checking account you shared with your spouse is frozen at the time of death, if even for a short period of time.
Maintaining a separate checking account can provide a degree of financial security in the event of an unexpected loss. It can give you uninterrupted access to money so you can continue to pay bills and make purchases until all joint financial assets are transferred appropriately.
Open your joint and separate checking accounts at Citizens Bank
Whether you are looking to open a joint checking account with your spouse or establish financial independence with your own account, Citizens Bank can help. Start today and compare bank accounts to see which checking account options might be right for you, or call 1-877-360-2472 and talk to a Citizens Bank representative for help. Once you are ready, you can open a checking account online or at any of our branch locations.