Should Married Couples Have Separate Bank Accounts?

Did you know that today less than half of married couples have a joint bank account? 

According to a recent Bankrate survey, 74% of Gen Zers and 67% of millennials prefer to keep separate bank accounts. On the other hand, about half of Gen Xers and Baby Boomers have separate accounts. 

The younger generations are becoming less inclined to combine finances. What implications do separate bank accounts have for couples? Should they flip the trend and go back to combining their finances together? Let’s look at the pros and cons of having separate bank accounts in a marriage. 

Are Joint Bank Accounts a Thing of the Past?   

It seems that way. However, there may be an explanation as to why the trend of keeping the finances separate is becoming today’s new normal.

Couples Are Waiting Longer to Get Married  

When you compare the average age of when couples get married today as compared to 50 years ago, you’ll notice couples are getting married later in life. 

As you can see above, the average age when people get married is on an upward trend. Instead of couples getting married a few years out of high school as we saw in the 1960s and 1970s, couples today are getting married in their late 20s and 30s.  

The period between their early 20s and early 30s typically results in singles developing their own financial habits before marriage instead of during those first few years of marriage. 

Since couples are likely to enter marriage with their personal financial habits already intact, this may be why more people choose to go with separate bank accounts today than ever before. 

Both Spouses Are Already in Their Careers 

With singles waiting longer to get married, this gives them more time to build their careers on their own. This also gives them more time to build their income. 

Getting married without two nickels to rub together and then building a joint income is less and less the norm. And with couples entering a marriage with an established income, they may be less likely to combine their finances with their new spouse. 

Should Married Couples Have Joint Accounts?   

Although it’s becoming more popular to keep separate bank accounts, couples are typically better off combining finances when married. 

When looking at the research, study after study continues to show that couples who share money together are not only happier, but their marriages last longer. 

Even with the younger generation electing to keep separate bank accounts after marriage, they may want to rethink this strategy for a few important reasons. 

Pros of a Joint Bank Account 

Better Communication Around Finances 

If you’ve been in a serious relationship or marriage in the past, you know that the crux of any relationship is communication. 

When couples keep separate bank accounts, there is less of a reason to have financial conversations together. But since money touches every aspect of our lives, couples benefit from having regular talks about it. 

With a combined checking account, couples are forced to communicate about money and make financial decisions together. 

Work Toward Shared Financial Goals 

Part of the financial talks should include your money goals as a couple. But if you have separate bank accounts and separate financial lives, your money goals are also separated.  

Where do each of you want to be financially in 10 years? What about 20 or 30 years from now? 

When couples merge their finances together and combine financial goals, you stop looking at money as “hers” or “his” and more like “ours.” It's no longer her savings, his student loan debt, or her investments but now our savings, our debt, and our investments. 

Full Transparency 

With separate bank accounts, it's easier to keep financial secrets, not share the whole truth, and hide poor financial habits from your spouse. 

But when you have one bank account between the couple, everything is out in the open with full transparency surrounding the family finances. 

Simplifies Your Life and Money Management 

When you got married, your officiant did not say anything about a business arrangement. But when married couples have separate bank accounts, they may be married in all other areas of life but become business partners in the family finances. 

This is because one spouse will eventually have to pay the other spouse to cover whatever expenses they have agreed upon.  

An example of this could be a husband writing a check to the wife for half of the mortgage, a wife sending a Zelle payment to the husband for the utilities, or any other option where the finances are split between the couple. 

A much simpler option is to combine everything into one bank account and have all the family income deposited into the account, then have all family expenses come out of the same account. 

Cons of a Joint Bank Account

• Loss of Autonomy
  With a joint account, both you and your partner have equal access to funds, which can lead to disagreements if one partner feels their autonomy is compromised.
• Financial Conflicts
  Differences in spending habits or financial priorities can cause conflicts when managing a joint account, leading to stress and tension in the relationship.
• Risk of Overspending
  Without clear communication and budgeting, joint accounts can make it easier for either you or your partner to overspend, leading to financial strain and resentment.
• Complications in Case of Separation
  If the marriage ends in divorce or separation, dividing assets in a joint account can be complex and contentious, especially if there are disagreements over ownership or contributions.

When Should Married Couples Have Separate Bank Accounts?   

Although couples are typically better off with shared bank accounts, there are a few situations when couples may be better off separating their finances. 

Financial Infidelity 

Financial infidelity is when one partner lies to another partner about their finances. This can wreak havoc on a marriage, and it could take time for trust to be re-established within the relationship. 

This may be a time when the couple pushes pause on combining their finances until they rebuild their trust. Once the trust is rebuilt and both are on the same financial plan, then it’s time to open the conversation about merging the finances and moving towards financial goals together. 

One Spouse Has Poor Financial Habits 

Is your spouse battling a gambling addiction, a bad spending habit, or any other poor financial habit? 

If your partner is facing any of these situations, the best option may be to hold off on merging your finances until the poor financial habit is corrected.  

How to Combine Finances in a Marriage   

One of the best ways to begin combining your finances is to create a monthly budget together. 

This is a great opportunity to sit down together and see exactly what is going on with your finances. Get it all on paper so you both can see how much is coming in, what is going out, and how much you’re either saving or possibly overspending. 

Then, work together to create a budget that works for you, whether it’s a zero-based budget, 50/30/20 budget or other budgeting method. 

After creating your budget, the next step is to open a joint checking account. This is where all the income between the two of you will be deposited and where all the expenses will be withdrawn from.  

Although combining finances may appear to be a thing of the past, couples are still typically better off sharing money. 

Better communication, working together towards financial goals, and full transparency about the finances are among the best reasons for choosing a shared bank account. 

If you and your partner currently have separate finances, ask each other why you both choose to keep separate accounts and what keeps you both from merging your money into one account.  

Then, discuss whether combining finances is the right move for you. If so, get started by creating a budget and opening a joint checking account.