Couples and
spouses who live together but keep their finances separate could potentially
run into problems further down the road. Keeping finances separate can be
smart, considering the estate-planning advantages that occur when couples own
separate properties, but there are also downfalls. The Wall
Street Journal listed the following potential pitfalls of keeping finances
separate:
1. Assets
owned separately might be distributed differently than the owner would like,
should the owner pass away without making an estate plan. Experts suggest
consulting with a professional to make an estate plan to avoid the confusion.
2. Separate
accounts may cause couples to lose communication with each other, especially in
regards to finances. Communication about finances, especially retirement
accounts, is very important. Just because accounts are separate does not mean
that finances do not affect the other spouse or partner.
3. Separately
owned property holds a greater risk when it comes to bankruptcy or lawsuits.
Property that is owned jointly is more secure, as only half of the property
will be gained by a bankruptcy claim or lawsuit.
4. Separate
accounts can be problematic, especially when it comes to a partner or spouse
passing away. When an account is not in your name, you cannot simply withdraw
money or change the account.
There are pros
and cons to keeping accounts separate. If you have questions or would like
advice on managing your finances, please contact us.
518 Arbor Hill Rd.
Kernersville, NC 27284
Ph: 336-996-3338
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