Banking 101 for couples: avoid angst with simple planning

There are no strict rules as they depend on different circumstances, but these are some of the best practices and considerations to think about.
Joint bank account with your spouse: Typically, it is the most sensible way to manage day to day spending and saving, and it will save you lots of trouble when one of you dies. In the event of your spouse’s passing on and you have separate accounts, the bank will require proper documentation before you can gain access to the account i.e. a probated will, which can take a few months. A joint account can solve this issue as both spouses have equal rights.
Authorised signer on your spouse’s separate account: Many people wrongly believe that being an authorised signer on your spouse’s account equates to a joint account. It is not so, as while the spouse is alive and has given you authority to sign and have access to his/her account, that authorisation automatically revokes once the account owner dies. The remaining spouse will have to go through the same process as if the account was a separate account.
Offshore accounts: Some countries require the proper documentation — including a probated will of the deceased from the court in the same jurisdiction, while some countries will accept those from other countries—but with certification and/or confirmation from a notary public, consular and/or other governmental offices. In any event, the process can be complicated and time consuming. Therefore, a joint account can be the best option as it takes away the hassle of dealing with foreign courts and jurisdiction when a spouse passes away.
Separate accounts for day-to-day activities, bills and personal savings: People are getting married later, which means they are set in their money habits. This can create angst in joint account arrangements and possibly compromised banking arrangements. Hence, have a joint account for investment and key bills like mortgage, children’s education etc. Having separate accounts for day-to-day activities as well as personal savings can be a good solution to satisfy a couple’s need for some degree of financial independence and yet accomplish joint objectives.
There are no must-do rules, but they depend on circumstances and what you and your spouse or partner are comfortable with.
I hope you find these tips useful and I wish you all an advanced Happy Valentine’s Day and Chinese New Year with good health, happiness and prosperity!

Vira-anong C Phutrakul is managing director, country retail banking and head of branch distribution, Citibank.