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A12 BUSIINESS
Monday 13 February 2023

Millennial Money:

Should unmarried couples have

one account?

This Wednesday, June 6, 2018, file photo shows U.S. currently in New York.
Associated Press
By CHANELLE BESSETTE of Joint accounts can be use- transparent tracking for the
NerdWallet ful for managing regular account," Kovar says. "Both
When a couple joins finan- expenses as well as longer- people should be able to
cial forces, it's typically so term financial goals. Per- access the account at
they can accomplish a haps you and your partner all times. You should both
joint savings goal or con- want to make it easier to agree on what the ac-
tribute to shared expenses, pay your rent and utility bills count can and can't be
such as those that come from one pot, or maybe used for, so that way if an
from living together. you want to save for a va- argument occurs, then
This is a typical step for cation, wedding or house you'll both be clear on
married couples, but more together. A joint account what went wrong."
unmarried couples are tak- can be a useful place to DRAWBACKS OF USING A
ing the plunge to combine start, as long as you lay JOINT ACCOUNT
households: The number ground rules together for The primary drawback of
of unmarried partners that how much you each plan a joint account is dealing
live together nearly tripled to contribute, how you're with the dreaded ques-
between 1996 and 2017 going to use the funds in tion: What are we going to
from 6 million to 17 million, the account and what do with this account if we
according to the most re- you'll do if your relationship break up?
cent figures available from ends. Parting ways is hard
the U.S. Census. From living Taylor Kovar, a certified fi- enough, but when there
together to sharing other nancial planner and CEO are shared assets involved,
financial goals, unmarried of TheMoneyCouple.com, it can be even harder. The
couples may have ques- says unmarried couples simplest way to handle a
tions about how they can should be very careful joint account post-break-
manage their money to- about opening a joint ac- up, Kovar says, is simply to
gether. count. There aren't as many split the funds in half. But
One way to streamline legal protections as there if one partner contributed
shared expenses is to open are for married couples, more than the other — per-
a joint bank account, who have inherent legal haps because that partner
which can simplify the co-ownership of assets that has a higher salary — then
way you pay for things to- the couple acquired after it may be a good idea to
gether. If you're consider- they got married. He says split it equitably based on
ing opening a joint bank that there's safety in keep- the percentage that each
account with your partner, ing your own accounts and partner contributed to the
you'll want to think about then opening a separate account.
the pros and cons of that joint account that you and April Lee, the financial
option. your partner both contrib- blogger behind Hassle-
BENEFITS OF USING A JOINT ute to. FreeSavings.com, is grate-
ACCOUNT "There needs to be very ful that she and her for-
mer long-term partner
never commingled their
finances, especially when
it came to the house that
she purchased but that
they both lived in. He con-
sulted a lawyer to try to sue
for ownership after they
broke up, but in the end,
he couldn't prove that he
had contributed financially
toward the house.q