(03) 9020 2905Good question, Mr Editor … if your aim was to create a flood of bookings with couples counsellors and divorce lawyers like Arnie Becker (Corbin Bernsen in LA Law).
The answer should be simple. But when it comes to couples, “simple” would require relationships to be routinely built on trust, equality and other ridiculous concepts, such as common sense being in abundance.
When mortgages are involved, couples should have a joint offset/redraw account that all money goes into. It doesn’t make sense to have separate accounts to earn interest if you have a mortgage.
If you “earn” 6 per cent interest, you’ll keep as little as 3.21 per cent after tax. But if you “save” 7 per cent interest on your home loan, there’s no tax and you keep the lot.
However, renters want to earn interest. The account should be in the name of the lower-earning spouse, so that the least tax is paid. There can be a lot of faith required here.
Every relationship is unique. Sometimes, peace in a relationship stands a chance – or the least fights are caused – when there are “yours”, “mine” and “ours” accounts.
Money is the number one cause of relationship arguments, surveys routinely find. One partner usually takes the lead on financial issues. Hopefully, that’s the one endowed with money sense.
Find a bank account solution that works for you both and aim to improve it as your relationship matures.
Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and a licensed financial adviser.