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The benefits of a private bank account in case of divorce

If you've just gotten married, you probably aren't thinking about divorce just yet. If you have thought it over and are thinking about the fact that you don't want to be left with nothing in case that your marriage does goes south, you maybe considering keeping a private fund that could help you in an emergency. Is this a good idea though?

Lots of people who get divorced say they wish they had more control of their own money and were more aware of their family's finances. Having your own separate bank account isn't necessarily bad and can even be helpful if there's trouble in your marriage and you want to separate or divorce.

While there are advantages to keeping a private fund, there are also disadvantages. For instance, the fact that it is secret may feel like you can't establish trust in your relationship. Later on, you could also be accused of hiding assets if you go through a divorce, even though having your own bank account or separate fund has little to do with hiding assets at all. Your own account, although private, is not hiding assets so long as you do disclose that you have the account during your divorce.

Even though there are some downsides, there are benefits as well. Your husband or wife can't tell you how to use your money and doesn't have access to your money. This gives you a certain amount of financial independence. On top of that, having a private fund that your significant other doesn't know about can be powerful for your emotional well-being. The account doesn't actually have to be secret, just having it separate is enough to preserve your financial independence.

Make sure you don't transfer funds from it into marital accounts if you want to keep it as a pre-marital asset. If you're still worried about your funds getting split in a divorce, a pre or postnuptial agreement can allow you to designate the fact that this is your independent account.

Source: Forbes, "Pros And Cons Of Keeping A Secret Fund In Case You Divorce," Jeff Landers, accessed Nov. 10, 2016

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