Joint Accounts for Married Couples: Can Your Financial Choices Lead to Divorce and Bankruptcy?
Several surveys report that the majority of married couples put all of their money in joint accounts. However, that number is less than it used to be, and there are several other options available to married couples.
Some couples choose to keep a joint account for joint expenses, and two separate accounts for spending or saving money. Others choose to completely separate their accounts, so that every payment needs to be coordinated and divided among spouses. Which selection is the best, and is there one more likely to cause financial disaster than the others?
Sharing expenses seems natural for married couples, and often the choice newlyweds make will depend on the specifics of their relationship, expenses, and earnings. If you have no direct reason to choose a certain way to divide or combine assets, it is best to choose what makes you most comfortable, and does not hurt your relationship.
When One Spouse Has Considerable Debt
If one spouse has quite a bit of debt, and the other does not, it will probably be best to consider that debt as mutual debt, for the sake of your relationship. Studies have shown that couples that fight over debt tend to end up divorced, and can also fall into bankruptcy.
This does not mean it is wise to consolidate or legally take on the previous debt of your spouse, however. Doing so may have financial implications in a divorce. And many attorneys recommend a prenuptial agreement among spouses with variegated finances.
Take Spending Habits Into Account
In addition to debt, spending habits can cause tension, which can lead to divorce and bankruptcy down the road. It is important to come to an agreement about your debt and your budget early in marriage, and preferably before the marriage. That way, you will have made a mutual decision early on and prevent fighting and debt down the road.
Speak with a local bankruptcy attorney to discuss if bankruptcy is the best option for you.
Stephen M. Trezza
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