Separate Bank Accounts? (2024)

In Mark 10:7 Jesus tells us “A man shall leave his father and mother and hold fast to his wife, and the two shall become one flesh. Does “becoming one” extend to the checkbook? Put another way, should husband and wife have joint or separate checking accounts? Rob West discusses that today. This is Faith and Finance - biblical wisdom for your financial journey.

• Regular listeners know that this is a question we get fairly often on the program, and it’s especially important for couples when they first get married. Usually, they just set up joint checking and savings accounts and it’s not really an issue. But not always.
• Sometimes older folks - maybe getting married for the second time - want to keep their accounts separate. Or, one spouse might enter into the marriage with a lot of debt or a bad credit rating. They think that by keeping separate accounts, one spouse’s bad history won’t affect the other. That’s because they’ve heard that when two people marry their credit histories are automatically merged into one by the credit reporting agencies — Experian, Equifax and Transunion. But that’s not the case.
• In fact, each spouse’s credit history is tied only to that person’s Social Security number. If one of them applies for credit in his or her name only, only that person’s credit history is taken into account.
• For example, newlyweds decide to buy a new car with a loan - usually not a good idea - but that’s another issue. Now say one of the spouses has good credit and the other doesn’t. If they take out the loan only in the name of the spouse with the good score, only that person’s credit history comes into play.
• So having joint or separate bank accounts has no effect on getting that loan. But let’s look at another situation. Many couples take a huge financial step within a few years of marriage, and that’s buying a house. The odds are because the payments will be so much more, that they’ll have to put both names on the loan application in order to meet income qualifications. That’s when the other spouse’s credit history will be taken into consideration. If that spouse has a bad credit history, it will have a negative effect on getting the mortgage approved.
• Let’s go back to the question of separate or joint bank accounts. The Bible doesn’t tell us whether spouses should share one account, because people didn’t have bank accounts back then. So we have to look at the bigger picture. As Jesus said in Mark 10, marriage is about two people becoming one. Obviously they both remain individuals, but marriage is a partnership that requires trust, openness and communication.
• That’s especially true when it comes to finances. Joint checking and savings accounts promote transparency and communication between spouses. It prevents spouses from developing a “mine and yours” mentality. It also promotes trust by ensuring that neither is making hidden purchases.
• There are some other practical considerations. A joint account simplifies bookkeeping and tracking your spending. A lot of couples have trouble balancing one checking account. Why double the problem with two?
• Having separate accounts can also create a cash flow problem. Are there enough available funds in one account to meet obligations? If not, money has to be transferred from the other account. With a single checking account, you don’t have to worry about not having enough money to pay a bill, or trying to track down the other checkbook.
• An argument that’s often made for keeping separate accounts is that one spouse is only interested in, say, the grocery category in the budget, and leaves everything else to the other spouse to be handled with a separate account. But that, of course, would leave the one spouse fairly clueless about the family finances if something should happen to the other. Not a good idea. Both spouses should have a good understanding of the overall financial picture.
• Frequent money conversations can ensure that happens. Keeping open the lines of communication about money and making spending decisions together means one spouse won’t be left in the dark.
• God’s Word contains the solution to every problem married couples face, including finances. In Colossians 3 we read, “Wives, submit to your husbands, as is fitting in the Lord. Husbands, love your wives, and do not be harsh with them.” And 1 Corinthians says, “In the Lord woman is not independent of man nor man of woman.”
• Safe to say that in most cases, that would apply to their checking account, as well.

Next, Rob answers these questions at 800-525-7000 or via email at[email protected]:

• Should you co-sign a mortgage loan with your father if he is having difficulty qualifying due to an existing car loan, if you have student loan debt and other financial concerns?
• Is it wise to buy a condo if you are age 70, have $100,000 in savings, a car loan of $14,000 and are concerned about rising rental housing costs?
• Is a Home Equity Line of Credit a good idea as a back up to your emergency fund savings if you are nervous about incurring debt and own your home free and clear?
• Should you relocate to be closer to your son if you have owned your home for 30 years and are afraid to give it up?

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