- July 16, 2019
- Posted by: Harrine Freeman
- Category: finances, Financial Advice
Marriage is a wonderful union between couples who love each other and want to spend their lives together. However, marriage takes good communication skills, hard work, and compromise. Marriage is not one-sided.
Marriage has many benefits such as getting reduced rates on insurance, avoid paying estate tax, gifts between spouses are not subject to gift tax, and assets are owned jointly and other tax benefits. In addition, married couples tend to live longer than single adults do.
The New York Times reported that two out of three second marriages fail. One of the major factors in couples getting divorced is due to finances. Here is some helpful financial advice on what engaged couples should discuss prior to getting married and keys to relationship and financial success.
- Don’t make assumptions.
- Discuss your views on wedding ceremony, career goals, educational goals, pets, marriage, family, health habits, children, and other important topics.
- Discuss past life experiences that have affected you negatively to help your partner gain perspective on your thoughts and behavior patterns.
- Determine how expenses and bills will be handled. Be honest about your financial situation.
- Examine each other’s spending habits and work towards a compromise.
- Hire a professional if you need assistance to sort out finances.
- Determine if you will have a joint account or separate accounts.
- You can have one joint account to pay all joint bills and then have separate accounts to spend left over money however you like with the understanding that both of you are aware of the other’s separate accounts.
- Discuss any obligations to family or others such as financial, chores, etc.
- Determine if you want to use a prenup to separate assets you acquired prior to meeting your mate.
- Determine how assets will be protected.
- Create a will.
- Discuss future goals such as insurance needs, children, retirement, and estate planning.
- Verify bills were paid.
- Setup protections such as overdraft protection, renter’s insurance, and homeowner’s warranty.
- Keep insurance policies and warranties up-to-date.