Saying “I Do”: Five Things to Discuss Before Joining Accounts
Monday, August 11, 2014, 1:00 AM | Leave Comment
Money is a heated subject, and it is one of the top reasons why married couples fight and divorce. Don’t enter your marriage blindly, believing it could never happen to you. Start your financial life together on the right foot by having honest and open discussions about each of these five topics.
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Your Net Worth
When going from his money and her money to our money, start by discussing the numbers. Disclose how much you earn, how much you have saved, and how much you owe and to whom. Don’t keep any major debts from each other.
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Your Credit Scores
Next, share your credit scores along with any negative and positive history you may have on your credit report. Even if you have negative history you’d rather not share, it will be much easier to share this information now rather than later when you have to explain why you cannot get qualified for a new house together.
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Your Attitudes Towards Spending and Saving
In addition to disclosing the hard numbers, don’t forget to talk about your attitudes towards money as well, as this is a major issue that affects many marriages. Are there purchases you cannot go without? Would you rather work hard and build up your savings account, or would you rather forget about money and enjoy life as you go? Harris & Partners Inc advise talking frankly about your spending habits even including groceries and bills.
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How Your Finances are Likely to Change in the Future
While discussing your current finances is a great start, chances are that your finances will change dramatically at some point in the future. For example, will you both work or will one of you stay home with the children? Do you plan to stay in your jobs forever, or do you plan to go back to school? Discuss these changes now, but realize that peoples’ attitudes may change over time.
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Your Savings Goals
Lastly, don’t forget to talk about your hopes, dreams and goals for the future to make sure you are on the same page. If one of you envisions working hard and retiring early while the other would rather enjoy life as it comes and is willing to work well past retirement age in order to do so, you may have a potential source of conflict on your hands.
Married finances can be a great source of conflict, but they don’t have to be. Have an open and honest discussion and make sure you know your partner’s answers to all five of these topics, and you will be off to a fantastic start.
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