I have been asked many times over the years if it is wise to have joint accounts when you get married. It is wise to have joint accounts, but understand a few things that can happen when you do have accounts that are shared with your spouse. I have spoken in the past about having “The Conversation” about how the finances are now and what they will be once you are married. This should happen when you move in together, get engaged, or even get “really” serious. It should not happen after the wedding. By then it is too late and what you have gotten yourself into is a quagmire of financial confusion. The reason it is necessary to have the “Conversation” is that you need to know what you are getting into before you join in wedded bliss and financial unity. Having joint accounts is essential in a marriage. Keeping your accounts separate, divided, nondescript or otherwise hidden can do damage to a relationship.
The first step is to see what each of you has before you step into joining your accounts. If there are some financial skeletons in the closet, you may need to figure out other options before you merge. In some cases merging can go against you if there are creditors knocking at the door. Of course, if you are truly committed then it makes sense to make those skeletons go away by paying off debt, consolidating credit, or figuring out if there are other avenues to take to resolve said issues. After all, you would hate to carry that baggage into the marriage if you did not have to. This is the only reason I can see to not consolidate accounts right away once you are married. No matter what, the end goal is to make sure everything is merged so there are no issues in the future.
By issues, I mean getting access to these accounts. The first thing you need to realize is that with all the Privacy laws, you cannot get so much as a confirmation from a creditor that there is even an account open if your name is not on it. This may get in the way of making sure bills are paid or issues are resolved going forward. Often only one spouse takes care of the day to day bills in the household. The inability to get access to an account will cause issues with timely payments. The other issue I hate to mention is the possibility of one spouse being unavailable or incapable of communicating due to illness, injury, or death. Gaining access to cash in a checking account can be tricky if you are not on it. This could mean the difference between feast or famine given the right situation.
There is no good reason to hide accounts in a marriage. I may not need to say this, but hiding accounts can be a touchy subject when it involves a loved one. In reality, you got married to someone so why would you keep your financial life separate? There is never a reason to have your accounts separate long term. However, if the circumstances are right, it may be wise to make sure things are taken care of before you start adding your name to everything. Most importantly, make sure you know what each of you brings to the table in terms of income, debt, credit, credit scores, and financial outlook. If you fail to do this, it will only cause issues down the road. Never forget that when you say the words “I do” you are committing to togetherness above separateness. Talk it out and merge the accounts already!