Shared account
So you can share your expenses and still remain independent
To many women, a common account sounds like the end of their own financial independence and the end of feminism. We’ll explain to you how you can stay in control of your finances despite having a common account in the relationship.
How useful is a joint account?
Whether in a shared apartment or a relationship: It happens regularly joint payments. Rent, internet, the weekly shopping and a holiday together are often paid for by one person, while the other pays their share afterwards. If everyone puts something out, it quickly comes to the billing – and on Nobody sees through the end.
In your relationship, the question that often arises is who pays this and that bill? How is it divided fairly? Of course, in a partnership we don’t have to divide every invoice down to the last cent, but if it turns out that a person regularly forgets compensation payments or rarely pays an invoice on their own, next to the two private ones Accounts, a joint account is worthwhile.
How does a joint account work?
A shared account can be integrated into everyday life in two ways:
- A joint account exists in addition to your own current account: It is opened in the name of the account holder and anyone can use this account to make payments. Who pays how much is discussed individually. That can be 200 euros, 500 euros or – depending on your budget – more per month. Joint bills are settled from this money pot. If the account balance drops to a minimum amount, for example 100 euros, new money is deposited through a standing order or a manual transfer. This variant preserves financial independence and nobody has to disclose their consumption behavior or justify spending.
- A joint account without a private account: If you decide in a relationship for a joint account without parallel private accounts, your expenses should be roughly similar. In this case, salaries and other income such as bonuses and lottery winnings end up in an account. You no longer separate between “yours” and “mine”. If it turns out in your relationship that you spend roughly similar amounts on hobbies, a joint account can be a good idea. This not only saves you transferring back and forth, but also possibly double account management fees, which can add up to around 200 euros per year. This account model requires trust and is not an invitation to confront partners with “expensive expenses”. Every single account movement is visible to everyone, this openness should be respected.
Joint account for unbalanced income
However, many couples do not split money 50/50. Perhaps one person earns significantly more, one: r looks after children or relatives full-time, or one person is in training. In this case, too, a joint account can make sense. Then will different amounts paid into the joint account. However, this should be recorded in writing in the event of dissolution.
If there is a: e main breadwinner in the family: while the other person is looking after the children, the main breadwinner (s) can: pay a household allowance into the joint account. The child benefit also ends up in this account, which is used to settle joint bills or personal payments. Because: Both parents work – one part receives a wage from a company at the end of the month, the other looks after the offspring. It is a give and take, and one person cannot do without the other person’s work.
The difference between an or account and an and account
Joint accounts can be concluded in two ways. As an OR account and an AND account.
- Or account: With the Oder account, all participants can access the account, i.e. withdraw money at the ATM or make transfers. The registered persons each dispose of the money freely.
- And account: With an AND account, account movements can only be made with the consent of all persons entered. A signature is required for transfers on paper.
Most clubs or organizations opt for AND accounts. An OR account can also be useful for shared apartments and partnerships. Trust is the prerequisite for this.
Joint account: what happens after a separation?
After a separation, the household account can easily be closed. This is what it takes Signature and a declaration of consent of all registered persons. The account holder is then (unless otherwise stated in writing) half the money to. So if a person empties the account after a breakup, they have to pay back what goes beyond their part.
Common account: disadvantages
As many advantages as a joint account has – of course there are also some disadvantages:
- Liability: If one person overdraws the account, you are jointly liable. This also applies if you have nothing to do with it yourself. A joint account is therefore only suitable if you trust the person. If this is not the case or if the person is not good at managing money, two separate checking accounts are a better choice.
- Garnishment: If there is a seizure, the money in a joint account is also affected. Even if you did not cause the attachment. At the first sign, transfer your part of the money to your checking account.
Big sums: Large sums that are transferred to a joint account can possibly be perceived by the tax office as a gift.
Should married couples have a joint account?
After the wedding at the latest, many married couples think of a joint account. But is it absolutely necessary to close a current account or an individual account? What alternatives do spouses have besides the joint account and how can the common money be shared fairly with insurance and building loans? Our colleague Anna Friedrich has for Capital + wrote an exciting article on the subject of “A joint account: yes or no?” With free access for one month, you can read on straight away!
You might also be interested in these financial topics: passive income, buying stocks, and retirement planning
Sources used: capital.de, postbank.de