Wednesday, August 28, 2013
Love, Marriage and Money
Even when we are truly in love, we still need to talk about money.
I know it is the last thing you want to talk about before you get married.
You can sort all that stuff out afterwards right?
Think about it this way.
Have you ever cheated on your partner?
I mean with money.
Probably, I know I have.
You know the kind of cheating I am talking about.
The kind, when you buy a new outfit, you put it in the closet without mentioning it.
Or when you buy a new pair of shoes and you say you got them in the sale, when actually you paid top dollar for them. Maybe it’s not telling your partner how much you charged to your credit card when doing the Christmas shopping.
Did you know that money causes the most arguments and breakups in any marriage?
So before tying the knot be sure you are open and honest about finances.
Here are a few things that should be discussed beforehand.
Is There any Existing Debt?
Nowadays it is very common to leave college with debt, it is important to be honest about how much debt you are bringing to the marriage. It has to be decided how the debt will be paid off and if you are going to pay it off jointly or separately.
Are there any Existing Investments?
This is obviously better than bringing debt to the marriage, but it is also something that needs to be discussed beforehand. Will these investments now be held jointly, and if so how will this be done and how will you maximize these investments?
Don’t forget about insurance.
Life, health and home insurance. All existing insurance needs to be taken into consideration possibly combining and reviewing, making sure that it is now in keeping with your new circumstances and that you have enough coverage as a couple.
What about Retirement.
Often this topic is best discussed with a Financial Advisor who can help you with the financial goals that you have as a couple, someone who can guide you to make the best decisions on how to invest and manage your money for your future retirement.
When entering into a marriage it is especially important that you do not neglect your Estate Planning, no matter how young you are. If you already have some Estate Planning done you will have to have these documents updated to be aligned to your new situation.
Do I need a prenup?
Well a prenup probably doesn’t seem like the most romantic thing in the world, but it is a very important part of the planning. As statistics show that a high percentage of marriages do end in divorce these days. It is not just for the rich, it is for everyone. It helps set the rules for situations like if one partner has more debt than the other or maybe if one partner is entering the marriage already owning a business.
Talk about it and be honest.
Money is a difficult conversation, but avoiding the discussion can lead to a lot of arguments down the road. Don’t let small problems grow into unnecessary ones just because you felt uncomfortable about talking about your finances. Seek advice from an expert to help you.
Are you planning to get married soon but haven’t yet spoken to a professional? Don’t put it off any longer call my office today and schedule a free consultation. Start your marriage of on the right foot. 239 288 0974. Karla White - Waterstone Financial