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Established Contributor
jcstarkey8826
Posts: 704
Registered: ‎06-01-2012

called stupid for having joint account?!?!

My soon to be fiance and I have had joint accounts and lived together for 2 years now. Apparently, I'm stupid for having joint finances? My co-workers all have seperate accounts from their wife/husband, and say that its not smart to have joint accounts. Now I could see if she was a shopaholic or something, yes, I might need a seperate account. However, we are both pretty frugal, keep our DTI very low, and splurge on couples things. We dont have to stress about money really and we are very in sync when it comes to finances. We budget every week before payday, I tell her what bills we have coming out, she decides the amount we set aside for weekly fun, and the rest goes in savings. I thought it was pretty easy, and thats the end of my financial thought for the rest of the week.


Is this a bad idea? Maybe when we have more than just 7k in the bank it might be tragic if she somehow took all of that money and ran one day lol, but I live in MI where its all 50/50 regardless of what accounts they are on. Is there something I should be worried about now?

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Established Contributor
jcstarkey8826
Posts: 704
Registered: ‎06-01-2012

Re: called stupid for having joint account?!?!

Its a good thing I work for the bank :smileywink:

 

My account would not be frozen per our policy, but most of the conversation was around trust. They didnt seem to trust the other with finances. I just found it strange that they thought two people couldnt/shouldnt join finances.

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pizzadude
Posts: 8,737
Registered: ‎01-28-2010

Re: called stupid for having joint account?!?!

 

You'll find a lot of strong opinions on this subject ~ IMO there isn't a universal rule that applies for all cases, and based on what you have shared about you and your spouse, I think you'll be just fine.   Some married people manage everything jointly, some don't.....

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Mrs-CFO
Posts: 3
Registered: ‎09-06-2012

Re: called stupid for having joint account?!?!

Agreed. It will be different for each couple.

 

My DH and I opened a joint account shortly after getting engaged. We each kept our own personal account. We each put a set amount into the joint account for bills, savings and joint fun. We have personal account to spend as we please - fun, gifts, etc. It's our mad money. A few times a month we discuss bills and where we are at with our budget. It works very well for us.

 

As long as you and your significant other are on the same page, then that's all that matters. :smileyvery-happy:


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rootpooty
Posts: 1,715
Registered: ‎10-28-2011

Re: called stupid for having joint account?!?!


pizzadude wrote:

 

You'll find a lot of strong opinions on this subject ~ IMO there isn't a universal rule that applies for all cases, and based on what you have shared about you and your spouse, I think you'll be just fine.   Some married people manage everything jointly, some don't.....


+1  dont worry about what everyone else tells you. If its working for you and you have no doubts about it then props to you.  Some women live in fairy tale land that money grows on trees so naturally people are going to give you grief when they find out you share your finances.   Most couple relationships turn pretty sour when its not 50/50 on the finances

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jd5189
Posts: 470
Registered: ‎08-14-2012

Re: called stupid for having joint account?!?!

Do not worry what other people tell you. It what you do works for you both financially, that is all that matters. We have joint accounts, but I handle it all (and she would prefer it that way). We also have a monthly/weekly budget for everything as well.

Both of our paychecks and investment incomes go into our joint "big" account. This is the account that pays the CC's (budgeted spending) and bills. Once per month, we have an automatic withdrawal to satellite accounts off the big account. These are our do what ever you want with this money accounts.  I cannot complain what she spends it on and vice versa. In my case I use my Freedom card and pay it off with my whatever money (unless I used it for gas for the 5% CB). If either of us want to buy something bigger than our monthy money, we have to talk about it. Some might say this kills their freedom with the money they earn, but we look at it as we are building a life together and since the money we both make supports that life (and the future) than it should go into one account.

I think it works out great for us. It keeps her from spending too much and me as well. It sounds like it works out great for you as well. Don't change something that is working out for you.

 

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Established Contributor
jcstarkey8826
Posts: 704
Registered: ‎06-01-2012

Re: called stupid for having joint account?!?!

Thats what I thought. I mean, not everyones situation works the same. We are happy the way we have it and it works for us. We dont fight or worry about the finances so I took that as a success! :smileyhappy:

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Shogun
Posts: 12,898
Registered: ‎04-15-2011

Re: called stupid for having joint account?!?!


jcstarkey8826 wrote:

Thats what I thought. I mean, not everyones situation works the same. We are happy the way we have it and it works for us. We dont fight or worry about the finances so I took that as a success! :smileyhappy:


If it aint broke, don't fix it!  :smileywink:

 


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lithium78
Posts: 929
Registered: ‎07-30-2011

Re: called stupid for having joint account?!?!

Joint accounts can be dangerous because if something goes sour either party can empty the account without notice.  My DW and I have separate account but also a joint account that we each pay into for all shared bills.  That way, we maintain our financial independence but also take care of our shared responsibilities.


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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: called stupid for having joint account?!?!

Joint checking/ savings/ investment accounts are one thing. They don't report to your credit history, and there are legal protections if things go sour. It's often way simpler to keep track of stuff with a joint account.

 

Joint credit is entirely different. Other than a mortgage, most people can pull their own weight for credit cards, etc and don't need a co-signer (aka, joint account holder) to get an account. If you have joint credit on an account (as opposed to being an authorized user), you are eternally responsible for anything and everything on that account until it is closed, and it doesn't matter a tinker's d@mn what the lawyer said or what the judge ruled. Creditors are not affected by divorce decrees. If someone else influences the co-holder of the account to do stupid things, you are entirely on the hook for it, no matter how right or wrong.

 

Another scenario is if one of you gets hit with devasting expenses (think medical expenses not covered by insurance + job loss), and bankruptcy might be the only option. If you've kept your credit (again, credit, not finances) separate, one spouse's accounts won't be included in the BK, and while digging out from the financial devastation, the couple can still buy a car and so forth.

 

There are all sorts of stories by people who are smarter than I and more experienced than I whose credit was ruined because a deeply-trusted loved one betrayed their trust. It's bad enough getting kicked in the teeth emotionally by someone you loved. Having their misbehavior --for instance: charges they ran up while taking their snuggle-bunny to Vegas, and oh my yes, this most certainly does happen --sit on your own credit report for another 7 years will lead to serious grinding of teeth and eventual dental bills.

 

My rule of thumb is separate credit accounts, except for a mortgage, and joint if you want it checking/ savings/ etc accounts, the difference being whether the account reports to one's credit history. If you both want to share in the rewards program, etc of a credit card, make one of you an authorized user. All the benefits, and none of the potential time bombs.

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