Operating A Joint Bank Account: Pros And Cons.

Should a man operate a joint bank account with his wife? A group responded with a loud No! Their reason: You can’t divorce a woman’s eyes from money. Whatever that means, is a topic for another day. Another group responded: Well, you can actually operate a joint bank account with your wife. Their observation: It can help both of you plan for the future.

Do you operate a joint bank account with your wife? If you don’t, what were your reasons? Can you operate a joint bank account with your wife? If not, why? If you can, what are your reasons? In this article, I will be examining the benefits and disadvantages of operating a Joint bank account with your spouse.

What Is A Joint Account?

A joint account, according to Wikipedia.org is a bank account that has been opened by two or more individuals or entities. Joint accounts are commonly opened by close relatives (such as by a married couple) or by business partners in an unincorporated business, but it can be used in other circumstances.

Operating a Joint account with your wife should be a decision you take in agreement.  Just like it is not possible for two people to embark on a journey without first having the willingness and the agreement to do so. So, proceeding to have a joint bank account with your wife must be backed up with an understanding and agreement. Marriage as a union will require a man and a woman to do almost everything in common. A decision to operate a joint bank account is one of such things. It could be to pool resources together in order to achieve a common goal like purchasing a land, planning for the education of their children or even to relocate the family. The bottomline to consider is the percentage each partner will contribute as both of you may not earn the same salaries or wages. Whether or not you contribute more than your wife to the pool will be dependent on your agreement. Agreement is key in operating a Joint bank account. This said, let’s consider the benefits.

1. It communicates transparency

Having a joint bank account with your wife signals transparency. There is no room for secrecy or spending that cannot be accounted for. The balance in the joint account is visible for all to see. Also, it is no longer “my money” or “your money”. It is now “our money”.

2. It reduces financial burden

With a joint account, you can reduce the financial burden on you because your wife will see what is in the purse and that will demand prudence when it comes to spending unlike when you have your own separate account.

3. It fosters unity

A joint account will bring you closer to your wife. At this point, you are able to include her in your plan.

4. It induces trust

With a joint account, you are financially accountable to your wife and vice versa. This will bring about trust in the marriage. The abundance or otherwise in your home will be a reflection on the balance in your joint account.

5. It can help you to plan for the future 

Operating a joint account with your spouse is beneficial in the sense that you are able to pool resources together which can be used to pay for mortgage, buy a property or even save money for the education of your children.

6. Ease of Access

In the unfortunate demise of one’s wife, a joint bank account  makes it easier for the man to have access to the funds without having to go through legal procedures.

Now that we have looked at the positive side of having a joint bank account with your wife, let’s look at the downside.

1. Lack of control 

There could be problems arising from controlling the manner your wife spends your money simply because she has access to it. This could become even more difficult if your wife is a spendthrift or someone who buys on impulse.

2. Serving your partner’s debt could be an issue 

If your wife is having unpaid loans, especially student loans, you will be forced to offset it now that you are having a joint account with her.

3. No Privacy 

Having a joint bank account with your wife means that you longer have privacy with regard to why you are spending the money. You may have a hard time explaining why you feel the purchase you have made or about to make is necessary.

4. Termination of the relationship 

Stories abound of instances where a wife disappears into thin air with the money she has with her husband in the joint bank account, leaving the husband high and dry.

Conclusion 

You will agree with me that the benefits of operating a Joint bank account with your wife far outweighs its disadvantages. However, care must be taken and agreement must be put at the focal point in taking this decision.

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