It’s the one proposal that never appears in romantic movies. It doesn’t involve a big diamond, and it won’t lead you down a flower-adorned aisle to the tune of ‘the wind beneath my wings’. For some, it’s an exciting affirmation that the relationship is becoming more serious. For others, it can be a disaster waiting to happen.

So ‘what’s this proposal?’ you ask. It goes a little something like this…

“Honey, do you want to open a joint bank account?”

10 little words that will either melt your heart, or have it beating double time in sheer panic.

So how do you avoid joint account disaster? Is it ever a good idea to entwine your finances?

Like many other financial decisions, this one is best served with a healthy dose of discussion, and some planning. It’s crucial to compare notes early on, and ensure that you’re both on the same page when it comes to matters of the wallet.

Clear the air

One of the biggest relationship-killers is money. Some people feel that money is a necessary evil, something that comes and goes, pale in comparison to experiences and relationships. Other people see money as a means to achieving freedom and happiness, and have clear financial goals in mind.

You might be very compatible in many ways, but it’s possible that you have very different attitudes about money. It’s important to have some open discussions about your financial situation before you open a joint account.

Plan a budget

Discuss what your joint account will be used for. Many couples have a joint account for the rent and household bills, and they each deposit an agreed portion of their pay. The remainder stays in personal accounts to be used for savings, leisure or personal shopping.

It’s important that both parties are clear about which expenses can be paid out of the joint account. This will avoid arguments when one party tries to pay the gas bill, only to find that their partner has withdrawn that money for a friend’s birthday present.

Sharing is caring

It might be a difficult topic, but this is the time to be honest about what you have, what you owe and what you earn. If one partner earns significantly more than the other, you will need to work out whether you both deposit the same amount into the account every month.

If one partner has significant debts, it’s vital to get this out in the open to avoid problems down the track.

With a bit of planning and some candid conversations, your relationship can survive the joint account challenge.