The Money Couple Minute - Separate Accounts

Are Separate Accounts A Good Idea?
If there's any financial question that can make a couple's heads spin, it's the question of separate accounts. Some financial planners say it's a necessity, others say it's asking for trouble. Parents and friends will give conflicting advice, leaving couples wondering if it's even possible to make the right choice.

Remember your partnership. Separate accounts can be very helpful. They make it easy to see who's spending what. But they can also open the door to hidden spending and other secrets that are the core of financial infidelity. Remember, strong financial communication is based in partnership.

Know yourselves. Make your decision based on the strength of your financial communication. If you find it easy to keep each other up to speed on your individual accounts, then separate accounts can work just fine for you.

Commit to regular Money Huddles. We tell couples to think of themselves as a partnership, a kind of "life business" where financial decisions are made together in the "board room"--the kitchen table or the couch or wherever you want to meet--during routine Money Huddles (learn more in First Comes Love, Then Comes Money). Just as business partners need to talk through financial decisions, even when they work for different departments, life partners need to talk about money no matter who writes the checks. The Financial Relationship Index can help you make sure you're maintaining separate-not secret-accounts.