Joint Liability

All aspects of the joint account are the responsibility of every account holder. Every holder is able to make deposits and withdrawals, so both account credit and account debt are joint concerns. The poor credit history of one account holder can reflect badly on the credit rating of all holders: similarly, a good credit history may make it easier for other holders to gain credit.

If your joint account has an overdraft facility, each and all account holders are jointly responsible for this debt. If one account holder runs up joint account debts, they are the responsibility of every account holder. It is even possible for the financial institution to use money from a separate account belonging to one of the account holders to pay off debts incurred in the joint account, even if this holder was not personally responsible for running up the debts! If you have a joint account with your partner, who runs up debts on the account, you will still be liable to repay their debts even if you divorce and the divorce order declares your former spouse to be liable.

Account credit is also seen to be owned jointly, and so if one of the account holders die, the deposits they made to the joint account cannot be withdrawn as a part of their estate: this credit becomes the property of the remaining account holders. If you share an account with your partner, this ensures that they have access to mutual funds even after your death. If you do not wish your joint account partner to inherit your money, you may wish to consider transferring money out of the joint account into a personal account, to ensure that your dependents inherit your money and not the other account holder.