Married Folks: Joint or Separate Bank Accounts?

[Paul Allen]

Just curious how the DIY REI married crowd handles banking. Is your money merged? Is your money separated. Do you take a hybrid approach? Does being a RE Investor influence that decision?

Wanted to take an informal poll of the BP community.

My wife and I are 100% merged. While I have specific accounts for my businesses, neither my wife nor I have any individual bank accounts. It's been working for us for 25+ years. Seems like the simplest arrangement to me, but I know other people work with other arrangements. 

Whats working for you, and why?

[Chris Mason]

Hi @Paul Allen,

*poof* a random lender appears

Not directly related to your question, but related to REI.

Scenario: Once in a while I'll have a married couple where one spouse, for whatever reason, wants to be on the mortgage  alone without the other spouse. All of the down payment funds are in the other spouse's account that just has their name on it.

Problem: Down payment "gifts" cannot be used for investment properties, primary residences only. It is absurd that Fannie considers transfers of funds within a marriage to be a "gift," but alas I am not the dictator of the universe and cannot change this at present.

Solution: Just what @Cara Lonsdale said, have both names on the accounts even if it's understood between the two of you that this one is "mine" and this one is "yours." She also highlights several other benefits like doubling the amount of gov't subsidized mortgages you can get, and more easily satisfying reserve requirements (which can become a Major Issue from property #7 onward).

*poof* a random lender vanishes