Banking Of Your Marriage

So, you are still in the first flush of marriage. Where life is a whirl of outings, parties, do's and setting up a new home. Money and handling it together are probably the last things on your mind. Yet, you need to prepare yourself to handle money issues together with your spouse. "Beware of opening an account for a married woman!"

That dictum was laid down in one of the classic textbooks on banking and many an old time banker would recall it with some amusement. Till a few decades ago, when the percentage of working women was far less than what it is today, bankers exercised considerable caution. The concern was that in the absence of an independent source of income, she would have more debits than credits in her account!

Thankfully, we live in changed cicumstances nowdays and it is not uncommon to find several women who earn as much as, if not more than their husbands.

Let's talk money

As singles, most of you would have been accustomed to being footloose with your earnings; you might suddenly find it unnerving to be discussing money with your spouse. Nevertheless it may be a good idea early on, to ease is into the discipline of discussing money issues with your spouse regularly. For a start, there are now two sources of income. Who does what, whose money is going to be spent and how much-these can all be potentially touchy issues. They need not be, if they can be discussed with tact and understanding. A number of mewly-married working couples we spoke to in the course of researching this article had arrived at some sort of understanding on the issue. We found in a number of cases-as with most things! - that the men tended to take over and spend on monthly household expenses. While the wife's salary was invariably looked at as a sort of reserve to be dipped into, when needed. Still others were busying themselves with the process of setting up their homes and needed every single rupee they could spare from both incomes.

"let's account for it"

Single or joint account? Should you continue to keep your individual bank account? Or should you open a joint account with your spouse? There are no hard-and-fast rules here; it depends on the circumstances of your case.

At best, a joint account needs to be viewed as a sort of convenience, not as a potentially emotional issue. If either potentially emotional issue. If either spouse tends to travel a bit, a joint account makes sense for the purpose of quick and easy access to money. Of the couples we spoke to, no clear pattern emerged. We found most people had hedged their bets; retaining their bests; retaining their individual accounts as well as opening a joint account. Sometimes, the nature of the industry you work in can also have a bearing on the issue. We understand that some types of employers like banks, for example, will not credit salary cheques to joint accounts, so there is little choice in the matter.

What you do need to remember when operating a joint account are some basic rules:

Make sure there are sufficient funds in the account, before either of you issues a cheque.

Make it a point to write down the details of the cheque you've issued, so that you are both in the know. Additionally, keep your spouse informed of any transactions you do through the account.

Keep your passbook updated at all times.

"And the nominees are..."

Nomination Is a facility whereby you can select a person of your choice(but not a minor) and appoint him or her as a nominee. In the unfortunate event of your death, the bank will then release the money held in your account to the nominee. When you open an individual bank account, your form will contain a column asking you whether you intend to nominate anybody. Do Exercise this option, since it considerably speeds up the release of the money in your account.

Remember however, that the nominee is only in the position of an executor. That is, she/he can only receive the money on behalf of your legal heirs. The nominee does not have a right to retain your money. So be careful with your choice of nominee. Your spouse or a very close family member should be just fine.

"Either/or survivor"

An option similar to the nomination facility that you could exercise when opening a joint account, is to authorise the bank to pay the balance in your account to whoever survives.

"And they lived happily ever after..."

In conclusion, trusting your spouse is key to making to work. Remember, the legal position is that banks or instructions will not interfere in your lives or sort out disagreements.

You need to however exercise basic caution, even with your spouse. If your spouse is, um, a spendthrift or not entirely above board, use tact and discreation rather than outright confrontation, unless absolutely necessary.