Your joint account with your spouse is not legally considered “50/50.”.
Couples often enjoy establishing joint bank accounts, although many lack understanding of the legal implications.
A joint account functions based on the authorization provided to the bank, rather than on love or assumptions.
In an “either/or” signing arrangement, one spouse is legally permitted to take all funds without the approval of the other spouse.
If the account requires signatures from both parties, it will be frozen upon the death of one partner, and the survivor will be unable to access it until probate is granted by a court or a letter of administration is issued where a person dies intestate.
If the joint account does not have rights of survivorship, the deceased’s share of the account may go through probate for distribution according to their will or the interstate succession law.
Although individuals assert, “It is our money,” legal frameworks governing account structures and banking regulations determine the control of the monies.
Thus, while people say, “It’s our money,” in law, the structure of the account and banking rules determine who controls the funds.
Do not open a joint account blindly or without careful consideration. Understand the directive and the ramifications prior to signing.
It will be good for church counsellors to seek advice from professional bankers on the subject matter before counselling prospective couples as they prepare to enter marriage.
E. A. Randolph-Koranteng (Rev)
Banking Consultant
Idea Champions Center
