Problems With a Joint Checking Account

• It is sign of trouble if a couple is unwilling to partner in financial management. Steve Allen/Photodisc/Getty Images

  A joint account is an account shared by two or more people who share in the rights and obligations of the account, according to the Business Dictionary definition. A joint checking account is common to married couples, guardianship situations, and other relationships whereby one person helps care for another, including assistance with financial management. Joint checking accounts can cause problems when parties disagree on how to management them.

Different Financial Management Approaches

• One of the simplest underlying problems faced by two or more people who share in a joint checking account is conflicting views on spending and managing money. Pat Curry points out in his Bankrate article "Love, Honor and Share a Bank Account," that a joint checking account was, at one time, customary for married couples. However, as more two-income households became common in the latter part of the 20th century, so to did separate checking accounts. Couples often come together with different backgrounds and philosophies about spending. Some find it simpler to separate their finances. Curry points out that financial experts and divorce attorneys often agree that it can be a troubling sign for a marriage partnership if the couple cannot work together in managing a joint checking account.

Increased Risks

• Certain risks are enhanced when a couple shares a joint checking account as opposed to operating two separate accounts, according to former loan underwriter and author Kevin Mercadante in his guest post "Joint or Separate: Which Checking Works Better For You?" for the website Five Cent Nickel. One risk that increases with a joint account is the potential for overdraft fees, according to Mercadante. This is because of the challenge in consistent and timely recording of each person's expenditures on the shared account. Additionally, if your (one) joint account is hit with identity theft, you are likely left without an account with which to to manage your money.

Negative Banking Information

• Don Taylor of Bankrate responds to a question in his Q&A article "Son Can't Flee Bank Checking Account" from a concerned wife whose husband appears stuck in a joint checking account with his mom who has Alzheimer's disease. Her husband is listed on a joint account with his mom to help her pay bills and manage her finances. The mom is listed as the "primary" account holder. She moved to live with a sister that has taken over the mom's income, leaving little to no money in the account. The couple has been paying the mom's bills from their own pocket and wonders about a fix to the situation. Since the mom is the "primary," only she can remove the joint tenant (husband) from the account, according to Taylor. Since he is on the account, simply not paying the bills could damage the husband's consumer banking report and adversely affect his other bank accounts.