Togetherness

Do you trust your spouse?

Let’s hope so. Maybe she/he wouldn’t take a bullet for you, but your partner sure needs to have your confidence when it comes to the Big Stuff. When to get the toddler an iPhone, for example. Where to live. How to retire. Who manages expenses. How to share household, kid and dog duties. Who invests.

As we’ve reminded you, a shocking proportion of marriages and relationships go poof! And it’s usually about money. Arguments over it. Disputes arising from it. Breaches of trust based upon it. Not enough of it.

It’s always surprised me how a man and woman can have a child together -pooling their lives and their genes – yet don’t trust each other enough to meld their finances.

Alas, happens. A lot.

But not to Graham and his squeeze. “As a millennial, I’m a believer in joint accounts with my spouse to simplify finances, maintain trust and ensure the process is easier to get access to these funds if one of us croaks (hopefully not for a long time),” he writes. “However, a lot of what I’ve read regarding joint non-registered accounts makes it sound like maintaining this type of account isn’t so simple.”

Yes, having a joint investment account with your spouse is a solid move. You can avoid the overlap, duplication and complexity that usually comes with dual accounts. A unified strategy can emerge – which only makes sense since you have a joint future. Achieving goals is more transparent and unifying. There’s more room for trust when assets are owned and managed together – no secret sums. No suspicion.

And if that emotional stuff doesn’t move you, consider what happens (as Graham suggests) if one of you dies before the other – which is pretty much going to happen.

A non-registered investment account held by a husband or wife individually is subject to probate, tax and delay. Death freezes it. Getting money out for a survivor can take days, weeks or months.

Not so with a joint account. The money is the property of the remaining spouse, instantly. Assets transfer directly to him or (more likely) her immediately, bypassing the probate process. They don’t become property of the estate. No probate. No tax (just don’t live in Quebec).

The key is to ensure the joint account is structured correctly – as JTWROS (joint with right of survivorship). That way the survivor gets full ownership. Unrealized capital gains stay that way with the assets moved to the remaining account holder at the original ACB (adjusted cost base). Therefore no deemed disposition – as would be the case if your squeeze died with their own account, triggering probate tax.

And, as mentioned, it all happens in an instant. At a time of sorrow and change, the last thing a widow or widower needs is a hold placed on money that’s needed by some gnarly banker.

But wait. Having a joint non-reg account is not without its share of bureaucratic grief, as Graham attests.

“I opened a solo non-registered account during the low points of those 2020 covid days. That capital has now grown to almost three-times its initial size.. My spouse has been gifted a sum that matches my initial contribution back in 2020. Her TFSA/RRSP/FHSA are full. So now we’re looking at a roughly 70:30 split if we open a joint non-registered account (between my full transfer and her initial contribution). As far as I know, I’d have to report 70% of the income/capital gains and her 30%, regardless of holdings.

“Do you have any tips/guidelines on proper ways to track this account so it doesn’t get out of hand and we’re in trouble with the CRA? Thank you, Garth, as always.”

True, that.

Contrary to popular belief, the CRA doesn’t want you and your spouse to arbitrarily split the taxable returns on your joint account fifty-fifty. Instead the feds require that you track interest, dividends or capital gains individually on income tax returns in proportion to who contributed the funds to the account (seriously). Also be aware that one spouse can’t dump money into the account for the other person to use to buy assets. The gains will be attributed back.

Of course, all this depends on self-reporting. Is the CRA likely to audit a couple with a joint account and demand to see proof of the origin of funds? And how about the situation of a long-married duo who have bought and sold houses, contributing to and occasionally draining a joint account in the course of those transactions?

The tax code is one thing. Reality is another.

Be compliant if you can. Hire an accountant if you can’t.

Be trusting above all. The dividends of that are immeasureable.

About the picture: “I’m incredibly grateful for all the hard work you put into your free, daily blog,” writes Heather in Sough Surrey. “Love your writing style, your sense of humour, and your sometimes-snarky comments in the steerage section. Couldn’t help but notice this dog perched on the peak of a roof as we headed for White Rock beach. His menacing stare said it all: “Don’t mess with me or you’ll be sorry.” So we didn’t, and we weren’t. Keep up the good words.”

To be in touch or send a picture of your beast, email to ‘garth@garth.ca’.

Source: https://www.greaterfool.ca/2026/06/07/togetherness/