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Does One Flesh Mean One Bank Account?

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
December 22, 2021 2:13 pm

Does One Flesh Mean One Bank Account?

MoneyWise / Rob West and Steve Moore

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December 22, 2021 2:13 pm

Does becoming “one flesh” in marriage mean that you each need to surrender your separate bank accounts? On today's MoneyWise Live, host Rob West will explain how combining your lives in marriage does require some special consideration about your individual finances. Then he’ll answer various financial questions from a biblical perspective. 

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Today's version moneywise lines to our phone lines are not in Mark 1017 Jesus tells us that man shall leave his father and mother and hold fast to his wife and the two shall become one. But if you're of 1/why have separate bank accounts arrival West. It's a question we get here a lot. Should husband and wife have separate checking accounts may be entirely separate finances, or should all of their money be merged all talk about that first today.

They will have some great calls lined up but since we're not alive today.

Please hold your calls until next time. This is moneywise line where all of our financial decisions are based on God's principles. Regular listeners know this is an off fetid question here on the program and it's especially important for couples when they first get married but usually they just set up joint checking and savings accounts and it's not really an issue. Not always.

Sometimes older folks may be getting married for the second time want to keep their accounts separate or one spouse might enter into the marriage with a lot of dad or a bad credit rating. They think that by keeping separate accounts, one spouse's bad history won't affect the other. That's because they've heard that when two people marry their credit histories are automatically merged into one by the credit reporting agencies experience aqua facts and Trans Union.

But that's not the case. In fact, each spouse's credit history is tied only to that person Social Security number. If one of them applies for credit in his or her name only, only that person's credit history is taken into account.

Here is an example of newlyweds decide to buy a new car with a loan, usually not a good idea, but that's another issue that now say one of the spouses has good credit, the other doesn't. If they take out the loan only in the name of the spouse with a good score only that person's credit history comes into play.

So you see that having joint or separate bank accounts has no effect on getting that loan, but let's look at another situation. Many couples take a huge financial step within a few years of marriage and that's buying a house. Now the odds are, because the payments will be so much more that they'll have to put both names on the loan application in order to meet the income qualifications and of course that's when the other spouse's credit history will be taken into consideration. If that spouse has a bad credit history. It will have a negative impact on getting the mortgage approved will now that that's cleared up. Let's go back to the question of separate or joint bank accounts of the Bible doesn't tell us explicitly that spouses should share one account because people didn't have bank accounts. Back then, so we have to look at the bigger picture. As Jesus said in Mark 10 that marriage is about two people becoming one. Obviously, they both remain individuals, but marriage is a partnership that requires trust, openness and communication. That's especially true when it comes to finances joint checking and savings accounts promote transparency and communication between spouses. It prevents spouses from developing mind and yours mentality.

It also promotes trust by ensuring that neither is making hidden purchases. There are some other practical considerations as well. Joint account simplifies bookkeeping and tracking your spending. Think about it. Many couples have problems balancing a single checking account why double the probable to accounts having separate accounts can also create a cash flow problem. Are there enough available funds in one account to meet obligations if not money has to be transferred from the other account with a single checking account. You don't have to worry about not having enough money to pay a bill or trying to track down the other checkbook now. One argument that's often made for keeping accounts separate is that one spouse is only interested in, say, the grocery category in the budget and leaves everything else to the other spouse to be handled with a separate account but that of course would leave the one spouse fairly clueless about the family finances if something should happen to the other. Not a good idea, keeping open the lines of communication about money and making spending decisions together solves that problem, eliminating the need for separate accounts of God's word contains the solution to every problem very double space, including finances in Colossians 3 we read wives, submit to your husbands, as is fitting in the Lord.

Husbands, love your wives and do not be harsh with them in first Corinthians, it says in the Lord is not independent of man or man no fault safe to say that in those cases that would apply to the checking account as well. I hope this helps foster marriage you're listening to an encore presentation of moneywise line. Today's broadcast is recorded, so please keep that in mind a pause now for a brief break will be back with more moneywise line. This is moneywise live with Rob West your phone number mentioned today. Please ignore that member and don't call us because today's broadcast is a reprise addition. Thanks for being with us today on moneywise live for God's word intersects with your financial life.

What's going on in your financial life is wrestling with the giving decision. Perhaps you're in the position that many of our listeners are related to our opening topic you're just struggling to figure out the path forward as husband and wife as you manage your finances together recognizing you both come to the table. The marriage relationship with the different past money was handled differently. Growing up that's led to you forming your own habits and disciplines related to money your views on handling money. The perhaps are different from one another. How do we form a path together in that and create a marriage that brings the finances under the Lordship of Christ as well. If you're struggling with that.

We love to hear from you. Maybe it's your spending plan or your debt repayment.

Whatever's on your mind today would love to hear from you. Here's the number 800-525-7000 got some lines open 800-525-7000 to Tennessee. Judy, thank you for your patience. How can we help you with multiple program popular. While I line up the rental debt by government all night child are I would like to know article talk to you have many forming grounds out people that aren't clicking quite well doing it and found you. Right now I'm in our financial K.

I like to divorce and had manual and the Carnatic down on my ID and everything will happen, and I can't do anything online because I do now. He telling you had knowledge can be lower and change everything though. Now I didn't feel right now I can't call you sure the help here. Yeah Judy.

Well, I'm so sorry to hear about the situation you've gone through in or you find yourself in today think there's a couple of things.

Number one is this is the divorce already been completed right and so I think the next step is based on what you're describing with the what your husband, the ex-husband has said Donner is actively doing related to your finances just to make sure that you are taking steps to protect yourself and the resources you do have, perhaps, opening new accounts in your name only.

I would freeze your credit reports that's going to prevent any new loans from being taken out in your name without your authorization. It's free to do, you'll just go to each of the credit bureaus, Experian and Equifax and Trans Union and tell them you want to put a credit freeze your sign a pin number and nobody will be able to access your credit without that pin number that only you would know that's gonna prevent again any accounts being opened in your name without your knowledge because if you can access your credit file. No lenders and extends credit to anyone whether there you or somebody claiming to be beyond that you want to check your credit report and follow through on anything you don't recognize because it's not yours.

It's being reported, you're going to get that cleaned up. I think the key for you right now is not investing. The key is to get on a solid financial footing and what I mean by that is establishing a spending plan in a checking account that is in your name alone. Perhaps again a new establishing that spending plan in such a way that it balances the income minus the expenses and you have a little bit of margin left. We want to look at getting out of any credit card debt that you have been if you've got somewhat use that margin to pay that down. We want you to get an emergency fund set up of 3 to 6 months expenses.

That's more important than long-term investments right now because if you don't have an emergency fund, Judy. If something unexpected comes in for all of us. The unexpected does come, then you need something to fall back on, so you don't have to borrow for that that money should not be in stocks that money should be in a savings account with FDIC insurance that's liquid and available.

You don't need to worry about the return on that money just need to worry about the safety of that money so we can access it. You can if you need and that would be really important. As a next we can think about investing a bit further down the road. The other thing I want you to do is go to the FTC's website and Federal Trade Commission they have some great helpful information on identity theft like for you to read and then lastly like you to connect with one of our moneywise coaches moneywise at no cost.

He'll walk with you to get that spending plan set up talk to you about the things that I just mentioned again moneywise coaches moneywise live.bless moneywise like to come just around please. Thank you for joining us today on moneywise live we apply God's wisdom to your financial life no matter where you find yourself. Perhaps you have an abundance you wondering how to be found faithful in what God has entrusted to you right now. Perhaps it's an opportunity to be more generous and look to meet the needs of others around you.

Or maybe you're really struggling just to make ends meet. Wondering what that path forward is that no matter where you find yourself today. God has a plan and here's the good news God's word has 2300 verses dealing with money and possessions in the Bible. And as we begin to understand God's heart related to our money. Meaning he owns it where the manager that he is our provider. He will never abdicate that responsibility to anyone else, and that money is a tool to accomplish his purposes, and there's principles we can apply that are transcendent, they transcend markets and tax codes and economies, and there always right and relevant and we apply those to our situation. I think we can move forward with boldness and confidence knowing we put ourselves in a position to experience God's best.

Now he's not a cosmic vending machine that means were always good to be flush with financial resources, but it does say at least we've been found faithful with what he does. He's entrusted to us and we can trust him for the rest. Well, we want to apply that thinking to whatever's going on in your life today just a moment were to be talking about long-term care is not a good investment that's been to be with Priscilla. Also Sally is gotten remarried and wondering how to handle the distribution of assets in her new marriage.

But first, let's head to Florida. Susanna understand that you have a Florida retirement system plan that you have questions about how much that will be retiring in about seven years and we have about 11 years between now I'm back before I retiring with an eye contact and health insurance battle and now I reach Medicare and L4 and we can be debt-free at that point at my question as a retirement that I won't act that that I thought the pension plan I want access that account 59 between 50 and 59 with mine back then and for each yes well you would just assuming you're vested in that investment plan. Do you know have you been there long enough. I believe six years.

If you're you are enrolled prior to July 1 of 2011 I have okay great so if you're fully vested, then you're in the FRS investment plan, you would likely just leave that balance there and it would remain invested in you got a number of investments it to choose from inside the plan, you could continue to make changes and then you would be able to access that money after the age of 59 1/2 at that point you could what most folks do, would roll that balance out to an individual retirement account what you would need to check on is whether you could do that prior to that age I don't believe you can. But in either case, you could still keep that money invested, it would just be frozen. Nothing else would be added to it. But you know you would be able to choose from among the investments inside the plan, so the idea would be that it would continue to grow until such time as you could begin to draw it out. Does that make sense how I wanted to I want it back in out I can't check it out right.

Well, no, I don't believe so. What you separate from service you would want to open then a different retirement account to be able to contribute to you ongoing so you would want to look to an IRA or you could use a separate IRA something else that you would use in the interim to continue to accumulate retirement savings at all right, Susanna. I'm excited for this upcoming new chapter of your life for you and your husband and all that God have what God will have for you then, and we appreciate you listening calling today to bless you and let's head to Wisconsin Priscilla understand you want to know about long-term care insurance can help you helping my mom and her tight 56 and 48 second marriage 21 years of marriage and started looking at getting through college but were told some company stopped selling long-term care because they were losing money and just wondering if there still good company to Collect joint long-term care policy or separate one.

Yes, I think the key is your you're right, there are some companies that exited the space over the last number of years. As healthcare costs been rising and when this your 20 years ago was a fairly new product folks were still learning how to price to and they were very difficult in some of the insurance company said you know this is just not a space we want to be had and they'd kinda gotten out of it, but there are some really committed carriers to long-term care insurance and that's why think it's important Priscilla.

As you look at this to make sure that you have a independent agent to perhaps as a long-term care insurance specialist that knows the various companies that are the key players in this space has an understanding of your health status you and your husband, so he or she can shop it and find the company that would be the best fit for you all. In terms of meeting the needs that you have but also giving you the most beneficial pricing based on any health considerations. If something is going to erode your assets during the retirement season of life to its most often going to be the need for long-term care and so it can be set up to pay for long-term care medical services. These are could include all the whole range of services but also it can range from your in-home care to nursing home or assisted living and will pay a daily amount for services based on those costs, and there are a number of triggering events that will qualify you for the payout to begin here we say you typically want to look at to securing this between 55 and 65 where your kids are off the payroll hopefully and you know frees up some your cash flow. It's the most effective time to get it from a cost standpoint and it's not cheap AMI premiums can be several thousand dollars a year and they can change over time, they can increase of the key is want to buy something that fits well within your path at your your budget so you don't have to drop it down the road. I say typically if someone has net net worth not income but a net worth between 300,000 and 3 million is probably the range where you'd want to look at this at least considerate below that you would rely on government assistance above 3 million.

You could self-insure. You want to probably have an inflation rider. So it's can increase over time, you'll want to look for 3 to 5 year benefit. With a six month waiting period. That's can keep the cost down but I think the key is to make sure the tape you have that independent agent who understands it.

I can help explain all the different types of long-term care insurance, coupled with life insurance or whether it standalone all these riders that are out there. You may or may not need and all add cost so I would connect to somebody in your area.

If you don't know someone there in your area you could connect with a certified kingdom advisor to an independent insurance agent who specializes in long-term care insurance can find all the best, folks, this is moneywise live for God's word is applied to your financial situation possibly come back some great questions lined up will continue to unpack God's truth related to their financial situations.

This is a reminder that were not live today but we do have lots of great information coming up and the rest of the program, so please go back to moneywise live with us today and checked out the new moneywise that we'd love for you to download it.

It's available as a free download in your app store. That's the Apple App Store the Google play store. Just search for moneywise biblical finance unified archives of all of our broadcast you'll find or discover tab with all the best content blogs and podcasts in biblical finance all in one place, our community where you can post a question and get responses from others in the moneywise community as well as our moneywise coaches and that our digital envelope system where you can manage your spending on a monthly basis connecting all your institutions automatically downloading your transactions and using the tried-and-true envelope system in a beautiful digital interface to manage God's money well and stay on the same space, same page with your spouse itself out of the money wise up again in your app store. Just search for money was biblical finance and you can download it today to Cleveland, Ohio Sally, how can I assist you recently on and we are in our 60s.

That's my second marriage.

It marriage and I'm struggling with the part about putting your husband first finances. I do have children.

He did not many have had other family and I money that I have on it in a trust for me on but there's money that I get off of that to organize and put aside and I how I have said enough is that on it happen in the first hill and will go into a trust and the same with his money and will going to trust and we are allowed to use that money on you know with the discretion of the bank and somebody else has to prove it. But on and feeling like I should just leave something directly and I can met at the same time I felt torn because I feel like you need to come not your children. Well, I can certainly appreciate where you're coming from and this is a challenging situation.

You obviously want to honor your spouse in God's word and yet we recognize that when wealth was created in a prior marriage, especially where there's children from a prior marriage that you know we can approach that differently as long as there's a shared vision for why and how that's being done. It's not for lack of trust.

It's not for lack of unity but it's just a recognition that with the assets that were created prior to the marriage relationship, especially with children that the other children are going to be taking care of out of dad and I think it's perfectly appropriate again in the context of an open and honest communication and shared vision as husband and wife to design the estate that way so that that the inheritance is passed appropriately. After both of your needs are met throughout this life that you win both of you pass that money could be absolutely directed to one set of children or another based on the wealth that was created prior to the marriage.

I would say perhaps what you know happens. From this point forward. I think as husband and wife you would give careful consideration to how to handle that, perhaps separately from what you had coming into the marriage but I think all that needs to be done in the right way and in a God honoring way.

I want to send you a book Sally that I think will help with this.

Our friend Ron deal at family life blended is one of the foremost experts on this from a godly perspective he's written a book called the smart stepfamily guide to financial planning, money management before and after you blend the family. He's written it with his good friend Doug Greg Pettus Susan financial advisor and we have Ron on the program periodically, but I think this will help you get a process through this. He talks about something in the book that he calls a togetherness agreement where you do just what I'm describing. You really build relational trust you develop a shared vision for how you care for all family members throughout your life, but recognizing that the way you do. That is not necessarily a one-size-fits-all and there's room for you to build a plan that takes into account when the resources were created and out what your desired outcome is for various portions of what God has entrusted to you and then that togetherness agreement is actually just the document whether it's legal, drafted by an attorney or not the just Doug defines all of that and of course you don't. Much of that would require legal instruments to actually carry out but it's the process that I think is really important so you don't go in any way erode trust, but you actually come together. I think in in a really unified and powerful way in even drafting it is all that make sense and the money there.

It was created after we work together we had a couple number A lack any money so I don't know that makes a difference or not. Well so you know slightly, but I think again it just the fact that there are children from a prior marriage. You know, is this part of the equation that I think the key is and where is your husband that in all of this and can you all talk openly and honestly about the path forward together and come to one mind and heart about that in a way that brings you together but you know reflects the fact that you may handle inheritances differently feel for each of your children and that's not a bad thing again as long as it's done in the right way so let me send you copy this book. I want you to read through it.

Perhaps you guys read through it together or you could do it yourself and then pray through that conversation.

The tell you all can have about how your estate planning should be constructed so you stay on the line will get your information get that right out to you Sally and I'm confident the Lord will give you some wisdom as you move forward. But, let's head south to Florida. Margie, thank you for your patience today. How can I assist you during your show.

I and divorced here and down. I have to start doing fine now concerned about how money that the government issuing out and I do have 401(k) fund any original and I have one that I transferred over to Ira stating have to property my question. Doubt is that I had maybe $10,000 that I cut down to free up and it wouldn't bother me and I was wondering should I take him testing gold what you think gold versus what a publisher code is pretty secure me your thoughts. Now yeah be happy to Margie you know I'm not a big fan of the concentrated positions in gold and for most folks. I would say don't take physical possession.

If you want to have a gold allocation your portfolio do that through the fund, mutual fund or an exchange traded fund that would be a tracker investment that tracks the price of gold. You don't want to buy. The refiners are the some of the other companies involved in the process of manufacturing the gold or or mining it because there based on their own quarters and how they do as a company that's can affect the price of the stock in what you're looking to do is is take the follow the price of gold per ounce.

Now the truth is, gold is usually less of an investment.

It's more speculative in my view. It trades on fear and so as far as a hedge against inflation. In some cases it's worked in other cases it hasn't. Four out of the past nine decades. It's kept up with inflation. The 30s 70s. The 2000s in 2010's but it didn't keep up with inflation. In six of the past nine and I think because yes it's a store of value. So you actually don't want it to go up because it is sense when it is that means there's a lot that's going wrong around us, but even then, I think just based on the volatility and the overall long-term performance to date is just not on its side saying that it's it's makes sense for you to put a highly concentrated position, a large porous percentage of your investments in gold just because of the overall performance. So what I would do is stick to the 5 to 10% rule, meaning no more than 5 to 10% of your investable assets in gold and again I wouldn't buy physical gold if it were me I would buy it through an exchange traded fund that tracks the price of gold. So that's just my perspective and I think you know that will serve you well.

Over time, just based on historical data. We appreciate your call today. I will get it finished today in Florida.

Any how can we help you and I just sold a rental property and proceeding property name so maybe next month so I was going to show a note to my question is how much time is a guy like you.

18 months to time frame all know be subject to okay very good imports were short on time to give you my thoughts on that you can do something that he called the 1031 exchange was it's a like properties similar property, meaning you go from investment property to investment property even though you know you may go from single-family to multifamily or something like that as long as it remains an investment you can do a 1031 exchange. That's gonna push the capital gains tax out. Here's the rule on that you have to nominate the potential replacement property within 45 days of the closing and then within 180 days of closing. You have to acquire the replacement property. So I connect with your tax preparer just to make sure you do that properly, because you don't want to get caught off guard.

We appreciate your call but before we wrap up today. Let me remind you hear it here and we could certainly use your financial assistance. Moneywise media is entirely listener supported, which means we rely on your gifts. Your tax-deductible donations to fund the work that we do here and herein. It's now more meaningful than ever as we plan for our ministry activities next year. We have some exciting plans but we need to hear from you in order to fulfill them. You can give quickly and easily online. Just head to our website moneywise, click the donate button and thanks in advance. Moneywise, live is a partnership between Moody radio and moneywise immediately say thank you to my team today was a thank you dad Dan Jim Henry also.

Thank you Gabby T. Manning our phones today.

Thank you for being along with us as well. I hope you'll come back and join us next time for another edition of moneywise live the coolest your financial decision

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