Should You Open a Joint Brokerage Account?

Whether you’re planning for retirement, saving for a future home, or simply looking for a way to manage investments together, a joint brokerage account may be worth considering. These accounts allow two or more people to own and manage investments in a single account, making them a popular choice for married couples and long-term partners.

However, sharing an investment account means sharing both the opportunities and the responsibilities that come with it. Joint brokerage accounts can simplify account management and support shared financial goals, but they also give each owner significant control over the account and may expose assets to certain legal or financial risks. Before opening one, it’s important to understand the potential advantages and drawbacks involved.

Investing Together

Many couples open joint brokerage accounts because they share a household, manage finances together, and are planning for the future. Investing as a team can help couples work toward long-term goals while fostering communication and collaboration around money.

Combining assets may also provide a larger pool of capital to invest. While larger balances don’t guarantee better returns, they may make it easier to build a diversified portfolio and potentially accelerate progress toward shared financial goals.

A joint brokerage account can be particularly useful when saving for major milestones such as retirement, a home purchase, or future education expenses. However, couples don’t necessarily need to combine all of their investments. Many find it beneficial to maintain a mix of shared accounts for common goals and separate accounts that provide personal financial independence.

What Is a Joint Brokerage Account?

A joint brokerage account is an investment account shared by two or more people. Married couples, siblings, and business partners commonly use joint brokerage accounts to manage investments together, although any two adults can generally open one.

Joint brokerage accounts typically allow each account holder to view account information, place trades, and manage investments. Account holders can buy and sell securities such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs) using funds held in the account.

To open a joint brokerage account, all owners generally must provide identification and complete the brokerage firm’s application process. Because both parties often have significant control over the account, it’s wise to discuss investment objectives, contribution expectation, and decision-making responsibilities before getting started.

Main Types of Joint Brokerage Accounts

There are several types of joint brokerage accounts, each with different rules regarding ownership, inheritance, and control of assets. Understanding these distinctions can help you choose the account structure that best fits your circumstances.

Tenancy in Common

A joint brokerage account with tenancy in common (TIC) allows owners to hold unequal ownership interests in the account. For example, two people could establish a 70/30 ownership split based on the amount each contributes.

Each owner generally has the right to sell or transfer their ownership interest. In addition, there is no right of survivorship. If one owner dies, that person’s share does not automatically transfer to the other account owner. Instead, it passes to the deceased owner’s estate or designated beneficiaries.

A TIC arrangement may be appropriate for business partners, friends, or family members who want their ownership interest to pass to their chosen heirs rather than to the surviving account owner.

Joint Tenancy With Rights of Survivorship

A brokerage account with joint tenancy with rights of survivorship (JTWROS) is a shared investment account in which two or more individuals own the assets equally. If one account holder dies, that person’s ownership interest automatically transfers to the surviving owner or owners, completely bypassing probate.

This arrangement can be a good fit for married couples and long-term partners who share financial goals and want a straightforward way to transfer assets upon death.

Tenancy by the Entirety

A joint brokerage account with tenancy by the entirety (TBE) is a type of shared investment account available only to legally married couples in states that permit this ownership structure. It treats the couple as a single legal entity, meaning both spouses share a joint, undivided 100% interest in all of the investments and cash held within the account.

It also provides survivorship rights, meaning if one spouse passes away, full ownership of the entire brokerage account automatically transfers to the surviving spouse, bypassing probate.

Depending on state law, TBE accounts may also provide some protection from creditors pursuing debt owned by only one spouse.

Joint Brokerage Account Ownership Types

Advantages of Joint Brokerage Accounts for Couples

There are several potential benefits to opening a joint brokerage account as a couple.

Streamlined estate planning: Accounts structured as JTWROS or TBE generally transfer directly to the surviving owner upon death, helping avoid the delays and costs associated with probate.

Enhanced financial transparency: Both partners can view account balances, investment performance, and trading activity, which may encourage more open communication about financial goals and foster a collaborative approach.

Simplified portfolio management: Managing one account instead of two can make it easier to monitor investments, maintain target asset allocation, and rebalance a portfolio when needed.

Potential fee advantages: Some brokerage firms offer lower fees, enhanced services, or dedicated support for clients who maintain larger account balances. Combining assets may help qualify for these benefits.

Challenges of Joint Brokerage Accounts for Couples

While joint brokerage accounts offer advantages, there are also potential drawbacks to consider.

Liability and creditor risks: Depending on the ownership structure and applicable state laws, assets in a joint account may be vulnerable to lawsuits, creditor claims, bankruptcy proceedings, or other legal issues involving either owner.

Source: SoFi’s August 2024 Love & Money Survey

Reduced privacy and independence: Both account owners have visibility into account activity. Differences in investing styles, risk tolerance, or financial priorities can sometimes create conflict.

Ownership disputes: In many joint accounts, both owners have equal rights to the assets regardless of who contributed the money. This can create complications if a relationship ends or disagreements arise about the use of funds.

Less flexibility in estate planning: Accounts with survivorship rights automatically transfer assets to the surviving owner. While this can simplify inheritance, it may not align with every estate plan and could limit how assets are ultimately distributed to heirs.

Tips for Opening a Joint Brokerage Account

The following strategies can help couples successfully manage a joint brokerage account:

Define your shared goals: Even before you open the account, it’s wise to decide whether the account will be used for retirement, a future home purchase, education savings, or another long-term objective.

Choose the right ownership structure. Review the differences between TIC, JTWROS, and TBE accounts to determine which arrangement best supports your financial and estate-planning goals.

Discuss contribution expectations: It’s a good idea to talk about how much each person will contribute and whether contributions will be equal or proportional to income.

Align on your investment strategy. It’s important to discuss risk tolerance, investment preferences, and time horizons before making any investment decisions.

Create a process for resolving disagreements. It can be helpful to decide in advance how investment decisions will be made and how disputes will be handled.

Maintain room for individual goals. Many couples use a combination of joint and separate accounts to balance shared priorities with personal financial independence.

The Takeaway

A joint brokerage account can be an effective way for couples, family members, and business partners to invest toward shared financial goals. These accounts can simplify portfolio management, improve financial transparency, and, in some cases, make it easier to transfer assets after death.

However, joint ownership also means sharing control, responsibility, and potential risks. Before opening a joint brokerage account, it’s wise to take some time to understand the available ownership structures, discuss expectations with your co-owner, and determine whether a shared account fits your broader financial and estate-planning strategy.

Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest®. You can trade stocks, ETFs, or options through self-directed investing with SoFi Securities, or simply automate your investments with a robo advisor from SoFi Wealth. You'll gain access to alternative investments and upcoming IPOs, and can plan for retirement with a tax-advantaged IRA. With SoFi, you can manage all your investments, all in one place.

FAQ

Can couples open a joint brokerage account?

Yes. Married couples and unmarried partners can generally open a joint brokerage account together, provided they meet the brokerage firm’s eligibility requirements. Both account holders typically have access to account information and may be able to make trades, deposits, and withdrawals. Before opening an account, it’s important to understand the ownership structure, account rules, and each person’s rights and responsibilities.

What are the benefits for couples opening a joint brokerage account?

A joint brokerage account can help couples invest toward shared financial goals, such as retirement, buying a home, or funding future expenses. These accounts can simplify portfolio management, increase financial transparency, and make it easier to track progress toward common objectives. Certain ownership structures may also help streamline the transfer of assets to a surviving spouse or partner.

How can you start a joint brokerage account?

To open a joint brokerage account, both applicants typically need to choose a brokerage firm, select an ownership structure, and complete an application. You’ll generally need to provide identifying information, such as your Social Security numbers, addresses, and government-issued IDs. Once the account is approved, you can fund it and begin investing according to your shared financial goals and investment strategy.