Money ruins friendship. At least that’s what the saying goes. In a relationship, couples inevitably have to deal with common financial matters at some point. Are they small things at the beginning: Who pays the restaurant bill? How expensive can the first vacation together be? After moving in together, it quickly becomes a whole series of living expenses. In addition to the rent, there are electricity bills, weekly shopping or possibly a joint household contents insurance. Finally, if a joint tax return is also submitted after marriage, it is then worth thinking about a joint account at the latest.
A joint account, also known as a partner account, is basically nothing more than a checking account to which at least two account holders have equal access. It does not have to be a spouse or partner, a joint account can also be opened by a shared flat, for example. This can then be used to pay bills together and everyone has an overview of the expenses. There is no need for time-consuming comparisons of who paid what and how much one owes the other so that the expenses are divided fairly. The account can also be specified, for example, at the child benefit office. So both parents have access to it.
Free joint accounts
For other income, especially salary, it is advisable to keep your own accounts. “In this way, everyone can continue to meet their own needs with their own money. Expenses affecting both are paid from the joint account. This saves discussions about who will bear which costs,” according to the advice of the consumer portal Biallo. In this case, the joint account would be a third-party account. Disadvantage: Additional account management fees may apply. As with other account models, more and more banks are increasing the fees for account management or are introducing some for the first time. The DKB or the Santander Bank, for example, currently still offer free joint accounts.
If you want to open a joint account, you have to decide between an “And account” and an “Or account”. In the case of an “And account”, both account holders must always give their consent to transactions. Then both are always informed about all account activities, but this can be quite time-consuming in everyday life. The “or model” is therefore more common. Both partners can independently access the account, withdraw money or transfer money at any time. It doesn’t matter how much one has paid in: the credit is available to both in full.
Both account holders are liable
How the deposit is handled is an individual decision. Theoretically, both partners can transfer an equal amount to the joint account every month, but a share of the income is also conceivable.
In both models, both account holders are jointly and severally liable, explains the banking association. For example, if one person overdraws the account, the bank can also demand full repayment from the other partner. If an account holder is seized, the entire balance would be affected in the case of an “or account”.
If the account is to be closed at some point, all authorized persons must agree again. Converting a joint account into an individual account makes little sense. “It’s easier to close the joint account and open an individual account,” said Biallo.