Money and Marriage: Vice Versa

If you are thinking of asking your partner to marry you, make sure you have first discussed the practical implications. “It is a good idea to have really good and open communication about where you are financially in the present and what your future financial goals are. “It is really important that both people agree and are on the same wavelength so as to avoid future conflicts”.

Although conversations about money are not the most romantic, it is necessary to have them. After all, bickering over money can turn into serious problems and end in divorce.

What is your philosophy with money?

Before going into the details of shared bank accounts and planning the inheritance, start by understanding the other’s financial background. “Start talking about your background, from where do you come? Try to understand how the other person treats the money “. You will want to know how your partner considers money and their usefulness in life. A good point to start with is the question, what did your parents teach you about spending, saving, and charity?

What is your financial background?

It is important not only to understand what your partner thinks about spending and saving but also how he has arrived at those conclusions. Was there a little money in the family? Have they been deceived financially in previous relationships? Has money been a problem for them in the past? “If you go back to those stories, it’s often easier to understand each other”,

Do we make a prenuptial agreement?

To people thinking of getting married, it is highly recommended for a prenuptial agreement. Unfortunately, the part of marriages ends in divorces, so why not have that conversation when you can have it? It is not necessarily necessary to establish who will own the house, but the financial aspect of things. If the conversation about the prenuptial agreement seems too heavy before getting married, a post-wedding arrangement should be worthy, where the couples create the document together after having already married.

What are your financial goals?

Just because you now have two salaries, does not mean you can afford everything you want. “There are some needs and desires that are fairer than others. Whether it’s paying for frequent holidays or having a nice car, your values will not always be found. Write down each draft of a list with your wishes and needs so you can identify potential conflicts before they arise. Once you are married, you should review the financial goals you have mentioned, make them more specific and detailed by writing them down, and set a deadline.

What are your goals in life?

Are there any of the two who are planning to stay at home with their children for a period of time? What do you hope to achieve in the short term, and where do you want to be in 20 years? Do you want to travel? You may not have an already clearly designed timeline in your head, but first, you start talking about your ideas for the future, the more likely you will be able to accomplish what you want. When you think of the larger purchases you hope to go further, it would be convenient to bring up your credit situation.

How will you spend, day after day?

How much will total income be? How much will the expenses amount to? Which expenses will you pay? What expenses will the other pay? How will you divide these commitments? “. Have a “big picture” approach to your common budget before getting married – discuss the basics, as if you can afford a house or not, how much money you can put aside for your wedding and how you will achieve your financial goals and of life. Once you’re married, you can make a more detailed budget that represents your day-to-day expenses.

What are your assets and liabilities?

Once you’ve talked about the big picture, it’s time to put the facts on the table – everyone. “You do not want to have any surprises,” whether you have a student loan or a guarantee fund that you have never talked to your partners, it’s time to say everything and make sure your partner knows exactly what’s on your behalf, in case something happens to you.

Conclusion

When they arrive at the wedding, the spouses may have one or two old savings accounts from previous jobs, a current savings account, or an individual pension fund and other accounts created for them by their parents. Try to sit down with a financial advisor who can scroll through all the accounts on your behalf and determine what you need to do with them, making sure your partner has understood everything in case something happens to you.

For each savings account, pension fund, or existing investment account, the nominee will have already established a beneficiary in the event of death. “Now that you are setting up as a couple,” Smith says, “you will need to rethink the beneficiaries, based on what is right in your particular situation.”

If one of the people in the relationship has a large sum of debts, it is important to be open and honest about the whole situation. You can start making a plan together, first of all by committing yourself not to add any other debt and then deciding how to start tackling the debt and paying it.