Couples must, like everyone else, make management efforts. Money can easily be a source of conflict in the household. Rather than juggling your only personal bank accounts and alternating with the management of daily expenses, it is easier to opt for the opening of a joint account.
Easy installation
Offered by all banks, this offer allows two people to each be co-holders of the same account. Note that if this solution is primarily intended for couples, it is more widely open to at least two individuals, with or without family ties. Clearly: anyone wishing to easily share common expenses can use it.
However, it is not possible to share any bank account. The attached version can only be applied to a current account, a bank savings account, a securities account or a term account. Conversely, the regulated savings books and stock savings plans are strictly individual.
One signature, two managers
At first glance, a joint account has no difference in operation compared to those managed by a single holder. It provides a checkbook and a bank card, in a completely classic way. Likewise, as soon as the account title indicates “Sir or Madam” or more broadly “X or Y”, this means that each of the joint holders can carry out transactions without the need for the signature of the other.
But watch out for drifts. The majority of banks indeed impose a solidarity clause for all the operations carried out. If one member of the couple overheats the credit card or decides to empty the account to afford a luxury car, the other will have no recourse. Likewise, in the event of a negative balance or bank ban, both co-holders will be affected. To limit the risks, it is therefore advisable to appoint, at the time of opening, a single person responsible for the banking ban.
Closing by mutual agreement
It will be understood, subscribing to a joint account is not trivial. Especially since once opened, you will not be able to act alone to transform it into an individual account. Also be aware that a divorce is not enough to end this solidarity either. In case of separation, it is imperative to ask your bank to close your joint account so as not to continue to be considered as co-responsible for the debts accumulated by your ex. If the process can be carried out alone or in pairs, the signature of all the co-holders will necessarily be required to effectively close and share the possible balance.
Good to know: in the event of the death of one of the subscribers, the survivor can continue to use the joint account, while the personal accounts of the deceased are blocked until the estate settlement. That said, since half of the sums which appeared there on the day of his death are presumed to have belonged to him, they are part of the estate.
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The undivided account
While an “X or Y” heading corresponds to a joint account, the “X and Y” formula refers to its alternative: the joint account. This version is much more secure, but also less practical. Indeed, this collective account can only work with the agreement of all its co-holders. It is therefore necessary the signature of the two members of the couple for any deposit or withdrawal in agency. Even checks must be subject to this double validation.
This solution is generally used transiently, as part of a separation. It is enough for one of the two co-holders to send a registered letter to the bank to denounce the joint account. The latter is then transformed directly into an undivided account, which will prevent your ex from drawing from it as he sees fit until his closure.
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