5 reasons why couples may have separate bank accounts

April 21, 2023

More and more, married couples and those in long-term relationships are choosing not to combine bank accounts. Here are five reasons to keep your accounts separate.

Money represents more than a practical means of making purchases. It symbolizes independence, success, status and, when given or shared, love. Maybe that’s why it’s a common assumption that when couples cohabitate or marry, they will open a joint bank account.

But that belief is getting a generational shake-up. According to a survey by Bankrate, 31 percent of millennials and 43 percent of Gen Zers said they are likely to keep their finances completely separate. Only 19 percent of Gen Xers keep their finances separate from their partner, whereas baby boomers were at 18 percent.

Couples planning to marry or live together should have a frank talk about finances, including the topic of separate bank accounts. Those who learn to manage their money well – or create that perception for themselves – are more likely to have higher marital satisfaction, according to research from Iowa State University.

Here are five reasons couples keep their money apart.

1. To maintain independence

Sharing money may help you feel like part of a couple, but you will want to make sure you have the same financial management expectations. Many couples keep separate accounts for paying bills or saving for a vacation. This way, partners avoid feeling like they have to ask permission with every purchase. As an option, they may contribute to a joint account to achieve their shared financial goals.

2. To protect a partner from your creditors

If you’re bringing a large student loan or credit card debt to your marriage you should know that your spouse can be on the hook if your accounts are merged. Though creditors can’t target you for your spouse’s previous debt, they may be able to target a joint bank account if it has the debtor’s name on it.

In marriage, prior debt and obligations become “ours,” with both partners responsible. Accordingly, have a plan for how you’ll cover payments before saying “I do.” Maintaining separate accounts avoids this risk. You can always open a joint account later as you pay down debt.

3. To be prepared for a worst-case scenario

No one who’s about to take a leap into marriage likes to think about a future divorce. Keeping separate accounts can protect you from a common scenario where a partner legally drains a joint account without the other’s knowledge. At a minimum, keep a separate account as an emergency fund to protect yourself if your relationship turns sour.

4. To avoid feeling stuck or trapped

Some people say pooling their finances is like having a glue that binds you and your partner together. And that can make it hard to even think about splitting if your relationship changes.. If you’re the type who wants to always make decisions based on feelings and not finances, keep at least some money separate.

5. To help both stay on top of finances

Long-term relationships can show a tendency for one person to take the lead and become an expert in certain areas of life. If that area is finances, one partner could be left financially vulnerable. Should an emergency happen, you’ll be better off if you each know what bills are due or how to access retirement savings, for example. Keeping separate accounts lets both partners stay engaged in thinking about and managing money.

If you need help determining which account is right for you or your partner, make an appointment with a U.S. Bank personal banker today.

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