What Is a Joint Brokerage Account and When Should You Use One?

Joint brokerage accounts, of which there are several types, are shared by two or more people. There are some advantages to opening a joint brokerage account with your spouse, a relative or a business partner. There are also some potential disadvantages, including financial ones. If you’re considering opening up a joint brokerage account, make sure you do your research beforehand, as there are many options on the market.

If you have questions about investing or building a financial plan, consider speaking with a financial advisor today.

What Is a Joint Brokerage Account?

A joint brokerage account is a shared investment account that allows two or more people to own and manage assets together. Similar to joint bank accounts, these investment vehicles provide co-owners equal access to buy and sell securities while sharing the account’s benefits and responsibilities.

Joint brokerage accounts are commonly used by spouses, partners, family members, or business associates who want to combine their investment activities. Brokerage accounts allow investors to buy and sell a variety of financial investments, including stocks, bonds, mutual funds and ETFs.

If you and another party or parties want to open a brokerage account together, you can do so as a non-retirement account. Traditional retirement accounts like 401(k)s and individual retirement accounts (IRAs) do not allow joint ownership of brokerage accounts.

Joint brokerage accounts are usually used by spouses, relatives, partners and business associates. However, a joint brokerage account can be opened between any two adults who share mutual financial goals.

Types of Joint Brokerage Accounts

A young couple discusses whether to open a joint brokerage account.

There are several types of joint ownership, each with specific nuances. If you’re planning on opening a joint brokerage account, it can help to review these three common types of ownership so you can open one that fits your particular circumstances:

Joint tenants with rights of survivorship: This type of joint brokerage account has the provision that if one owner dies, the other gets the money in the account in its entirety. During both owners’ lifetimes, they both have had full ownership of the assets in the account.
Tenants by the entirety: This type of account is used mostly by married owners who hold joint property. For one spouse to make changes to the account, they must have consent from the other spouse. When one spouse dies, the other spouse gets the account in its entirety.
Tenancy in common: Both account holders have complete control of the account, but they each own a pro rata share of the assets. When one account holder dies, their estate determines what to do what their pro-rata share. The other account holder keeps their share of the account.

It’s important to make the correct selection for your circumstances when you set up your joint brokerage account. Otherwise, problems could arise in the case of divorce or death.

Pros of Joint Brokerage Accounts

Joint brokerage accounts offer several advantages for couples, family members, or business partners looking to invest together. These accounts allow multiple individuals to share ownership and management of investment assets, creating both financial and practical benefits.

Simplified estate planning: Joint accounts typically include rights of survivorship, allowing assets to transfer directly to the surviving account holder without going through probate. This can save significant time and money during an already difficult period, while ensuring immediate access to funds when needed most.

Streamlined financial management: Managing investments through a single account reduces paperwork and simplifies tracking of performance. Partners can consolidate their investment strategies, making it easier to monitor progress toward shared financial goals and maintain a comprehensive view of their portfolio.

Enhanced communication about money: Joint brokerage accounts foster transparency and encourage regular discussions about investment decisions. This open dialogue about financial matters can strengthen relationships and ensure both parties remain aligned on long-term objectives and risk tolerance.

Potential for lower fees: Combining assets into one account may help reach higher balance thresholds that qualify for reduced fees or enhanced services. Many brokerages offer tiered fee structures that reward larger account balances with lower percentage-based charges.

Shared financial responsibility: Both account holders can contribute to and benefit from investment decisions, creating a more equitable financial partnership. This shared approach can be particularly valuable for couples with different income levels who want to build wealth together.

When considering investment options, joint brokerage accounts provide practical advantages that can benefit multiple parties while simplifying financial management and planning for the future.

Cons of Joint Brokerage Accounts

While joint brokerage accounts offer convenience for couples and business partners, they come with significant drawbacks worth considering before opening one.

Equal ownership complications: All parties have equal rights to the assets regardless of contribution. If one partner contributes 80% of the funds but the other withdraws half of the account value, there’s little recourse since both legally own everything equally.
Liability exposure: Joint accounts expose your investments to the financial troubles of all account holders. If your partner faces legal judgments, creditor claims, or bankruptcy, your shared assets could be at risk, potentially jeopardizing your financial security.
Lack of privacy: Each account holder has complete visibility into all transactions and holdings. This transparency eliminates financial privacy between partners and could lead to uncomfortable situations if one party disagrees with the other’s investment decisions.
Complicated breakups: Dissolving a joint brokerage account during relationship breakdowns can be messy. Without clear documentation of who contributed what, dividing assets fairly becomes challenging, often requiring legal intervention and potentially freezing access to funds during disputes.
Estate planning limitations: Joint brokerage accounts typically transfer to the surviving owner upon death, potentially bypassing wishes expressed in a will. This automatic transfer might conflict with your broader estate planning goals and could create unintended inheritance outcomes.

Before opening a joint brokerage account, carefully weigh these disadvantages against the potential benefits. For many investors, maintaining separate accounts while finding other ways to collaborate financially offers better protection and flexibility while still achieving shared financial goals.

Tax Implications

Joint brokerage accounts also come with a few important tax implications, which vary based on ownership type, income and gains from investments. Here’s a rundown of the implications, so you can get an idea of how they may impact your financial situation:

Income and Gains: Any income earned from investments (dividends, interest or capital gains) is taxable. Joint account holders must divide this income based on their ownership share. If ownership is split 50/50, then each person reports half the income on their tax returns.
Gift Tax: If one person contributes significantly more than the other to the joint account, the IRS may treat this as a gift, potentially triggering gift tax implications. For 2025, the annual gift tax exclusion is $19,000 per person, meaning contributions over this amount could require filing a gift tax return.
Estate Tax: For Joint tenants with rights of survivorship accounts, when one account holder dies, the value of the account is included in the decedent’s estate. However, if the surviving account holder can prove their contribution, only the decedent’s portion is included for estate tax purposes.

It can also be a good idea to consult with a tax professional to fully understand how a joint brokerage account can affect your specific tax situation.

Bottom Line

A financial advisor discusses joint brokerage accounts with a client.

Weigh your options carefully before opening a joint brokerage account. If you have any trust issues with a family member or a business partner, there are other ways to be sure the heir of your choice has access to your money if you were to die. For example, durable powers of attorney or trusts. If one account holder contributes more to the joint brokerage account than the other, there may be a source of conflict. Another source of conflict could reside in the trust each has for the other.

Tips for Investing

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