Marriage is a happy and exciting time for two people that have decided they want to spend the rest of their lives together. But money and the handling of it is one of the leading causes of dissension between newly married couples. Putting your cards on the table before the rings and vows are exchanged is the best way to ensure that money will not come between you.
Step #1-Plan Your Budget
This is one of the simplest ways to decide how and where your money is to be spent. Many couples don’t think of budget planning before their wedding and once the ceremony is over, there can be arguments about the best ways to handle their income. Even if when you were single you had a budget you followed, now that there are two of you, you need to rework that budget so that it is fair for both of you.
Step #2- No Money Secrets Allowed
Failing to discuss your financial goals before you merge into a family entity will surely bring about many heated discussions after the fact of your marriage. Never keep financial secrets from your partner as this leads to anger when it finally comes to the surface. Be sure to disclose how much you are actually in debt and don’t try to fudge the numbers because eventually it will all come out. Tell your spouse about any stock options you have, any IRAs or other investments. Let them know if you expect to receive bonuses at your job and how you ordinarily handle them. Being open and honest from the beginning about financial matters can save you aggravation and distrust in the end.
Step #3- Bringing Your Debt Along With You
If one of you has a large amount of outstanding debt, you should both sit down and figure a way to pay down said debt. If you are planning on buying a new home, new car or other big ticket item, the amount of debt that is brought into the marriage will affect both of you. If it is at all possible, try and pay down that debt before the actual I do’s are said so that you can afford new furniture, a lovely honeymoon or other expensive purchases without adding more debt to one that already exists.
Step #4- Don’t Let One Person Hold the Financial Reins
It is fine if you have decided that one of you is better at handling money, therefore will be the one in charge of finances, but always keep informed of what that person is doing with your money. Stay informed of any investments, insurance policies or other income producing finances so that you will have a complete financial picture and won’t be surprised if something unforeseen should happen to one or the other.
Though you may not want to talk about money before your marriage, it is more than important that you do so. Having a clear financial picture and plan for your future will keep you both informed and happy so that no fighting will arise from any financial surprises down the road.