The effects of sexual orientation and marital status on how couples hold their money

Previous research has shown that intrahousehold bargaining power in different-sex couples affects household expenditures and how families hold their money. This article examines the portfolio of bank accounts held by same-sex and different-sex couples and its relationship to bargaining power and individual and relationship characteristics. Data from the U.S. Survey of Consumer Finances suggest that married couples are much more likely to hold money jointly than are same-sex or unmarried different-sex couples, even after accounting for the effects of other characteristics. However, many couples of all types hold money in joint accounts and do so more often in longer term relationships and when rearing children. Proxies for bargaining power help predict whether money will be held in individual accounts for unmarried different-sex and same-sex couples, but not for married couples. These patterns could reflect greater matching of married couples on preferences or the effects of legal and social institutions that differ by marital status and sexual orientation.