Marriage

When Love, Marriage and Money Come Together

Most couples open joint accounts when they get married. It's easy to do, especially if both spouses have accounts at the same bank or credit union.

A joint account is simply a bank account that has two or more people as the holders of the account. A joint account with rights of survivorship means that if one spouse dies, the balance of the account then belongs to the other.

One advantage of joint accounts is easy access to funds in the event of the untimely death of one of the spouses. If, on the other hand, an account is held in the name of the husband only, after his death it must go through probate before the wife can have access to the funds. That takes time and money.

It's not a bad idea for a couple to maintain one joint checking account as well as individual personal checking accounts. Both spouse's paychecks can be deposited into the joint account, and all bills paid from it. That way, both spouses know where they stand as a couple. Plus, bookkeeping and account costs may be kept to a minimum because of the higher combined balance.

Facts about Families and Banking in the United States

• 66% of couples have only one joint checking account
• 22% of couples have one joint checking account and 2 separate checking accounts
• 8% have 2 separate checking accounts
• 4% have no checking accounts

The above information is from a Public Opinion Online Survey conducted by Roper Center at University of CT.

Once you are married, any joint credit accounts-including auto loans, credit cards, and mortgages-will show up on each spouse's credit reports. The husband's use of credit impacts his wife's credit report and vice versa.

Be honest with your spouse; disclose your income, your debts, your assets, and your investments. It's not a bad idea to exchange credit reports before you marry. In most cases, you will not be held liable for your spouse's credit card debt, unless you signed onto a joint account.

Caution: If you live in a community property state, both spouses may be held liable for debts incurred during a marriage. Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin, and the territory of Puerto Rico.

In general, though, if you keep credit cards and assets separate, the only way a credit card company might claim your assets is if money in your account was deposited there to defraud a creditor.

If one spouse has trouble with the IRS, consider filing separate income tax returns. That way, you'll avoid the joint and several liability that comes from signing a joint return.

Also, if one spouse has bad credit, some mortgage lenders prefer that the creditworthy spouse apply for the loan in his or her name only. This can be a problem if you would need both incomes to qualify.