What You Need to Know About Marriage and Your Finances
Marriage is a big step in life, and it’s important to know the financial implications of tying the knot. Being financially stable for marriage is essential for couples who want to start their lives together on the right foot. Knowing how to manage your finances before and after marriage can help you avoid potential pitfalls and ensure that both partners are on the same page when it comes to financial matters.
How to be Financially Prepared for Marriage
Figure out where you both stand financially
Prior to getting married, it is important to understand where you and your partner stand financially. Some questions to consider are:
- Are you a spender or a saver?
- How did money impact your upbringing?
- How have you handled debt in the past?
- How much money do you have saved currently?
- What are your short-term and long-term financial goals?
Discuss prenuptial agreements, and do it early
Having a discussion about a prenup, or prenuptial agreement, gives the opportunity for both you and your partner to share your expectations on how you believe your assets and debts should be handled if you were to divorce. Having this conversation early on will allow time to have a meaningful conversation without it being rushed.
Decide how you will manage your finances as a couple
For any couple, marriage is a major life change and it’s essential to be financially prepared for it. Being financially prepared for marriage will help ensure that you are both on the same page when it comes to money matters so that you can work together toward achieving your financial goals. This involves discussing topics such as budgeting, saving, investing, debt repayment, and more.
It would be beneficial to create a financial budget that you both agree with and are willing to stick to, as well as to plan for how your bills will be paid. Another topic worth discussing would be whether you will have joint bank accounts, if they will be kept separate, or a mix of both.
Have frequent communication in regard to your finances
Communication is key. As mentioned earlier, it is important to have a discussion with your partner to know where you both stand financially; however, make financial discussions a regular thing. Check in with one another frequently to have a discussion regarding your finances. This will help ensure that bills are being paid on time, there is no overspending, and that saving plans are being met. Setting time aside for these conversations allows you and your partner to discuss any concerns or ask any questions in a more comfortable way, helping avoid conflict.
This content is provided for general informational purposes only and does not constitute financial, investment, tax, legal or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities referred to. Individual circumstances and current events are critical to sound investment planning; anyone wishing to act on this content should consult with his or her financial partner or advisor.