My money, our money

In the idyllic early days of a relationship it seems to make a lot of sense to combine financial forces. Unfortunately, a lot of important questions are ignored, such as:

• Is a joint bank account of equal opportunity to both partners?
• Does it unfairly favour either one?
• What problems would evolve if, for example, the female partner might seek financial independence?
• What happens if the marriage or relationship breaks up?

The joint bank account is an indicator of the changes in traditional nuptial patterns. It has taken the much-vaunted ideal of connubial bliss into a new era. Now, many marriages and relationships have become business collaborations where each partner contributes as an individual to the overall survival of the enterprise.

This sort of partnership must be made to work with as much thought and planning as in the case of a business tie-up. All too frequently, women enter into a marriage thinking that the future holds a life of constant happiness and fulfillment. Managing the household, taking care of young children and the need to earn a living, can soon bring married couples down to earth with a thump.

Sometimes, this thump takes the form of a break-up. The fact that marriages, like business partnerships and companies, can and do fail often comes as a shock to many people.

It is important for couples to recognise that all relationship may not necessarily be permanent. And steps ought to be taken to protect their separate interests.

The joint bank account is an indicator of this enterprise, and can operate in two ways to accommodate the needs of the couple.

• The first type of joint account is the 'both must-sign account'. Here, any party can deposit funds into the account. But both parties must sign any cash withdrawals.
• The second is the either-to-operate account. In this account, either one can deposit funds to the account and either one can withdraw funds (i.e. signature of both parties is not required).

Which kind of joint account is best for you?

Or should you enter a joint account at all?

One of the best options is for each partner to opens his and her own personal account as well as operate a joint account. The joint account can be used for household expenses while the personal account can be for their own consumption. Each partner is then able to make equal contributions for household expenses while keeping the surplus in their own personal account.

A relationship that is based on a rational, commonsense financial footing may not stand a greater chance of success, but if it does collapse then the long term consequences are not likely to be as devastating.

In my view, every woman entering into a permanent relationship should keep this vital fact in mind. Without damaging their opinions of each other, both partners should ensure that they well properly prepared for a rainy day, and that their individual financial position is more secure, in case of a break-up.