Photo: αλέξ Trüng Huỳnh / Flickr

Money is the one aspect of our lives that should not be guided by emotion.  Money is about logic and there are reasons that there are laws and processes around the borrowing and sharing of money.  One should perhaps consider this when reaching the point in a relationship where the topic of joint accounts enters the picture.  Ideally, accounts should only be joined when there is a legal contract between two people like a partnership or a marriage.

What’s yours is mine

Should a legal partnership dissolve or a marriage end in divorce, certain legalities come into effect to ensure that any joint wealth or assets are split fairly either in terms of a partnership agreement or a prenuptial  contract.  Should such a contract not exist should there be a split, conflict is likely to follow.

But we are in love

Joining finances by means of a joint home loan or other shared account is a step best kept for legal partnerships for a reason. What if you decide you want out of the relationship?  You are still jointly liable for the debt.  If you share the benefit you also share the responsibility, could you afford that should the relationship end?

Hope for the best but expect the worst

Learn to handle your own finances first.  Master your monthly budget and get comfortable with your own ability to handle money before even considering a joint account with anyone.  Do your homework, prepare always for the worst case scenario and keep this one aspect of your life free of fluff and emotion.

Your financial stability is your responsibility alone; no amount of joining finances is going to fix an inability to manage money.

Tags: budget, money