Let’s Talk about Money: The 5 Finances to Discuss with Your Partner Before Marriage
For sure, walking down the aisle and tying the knot is sure to be one of the most important events in your life. But as you are preparing for your wedding day, the importance of how to manage your finances may also come to your mind. Of course, managing your money when you are legally together is an essential part of your married life.
As we all know, getting married might also mean that you will now own both your finances as one. Your property, investments, savings, employee benefits, and even your taxes will now be combined into one financial entity.
That is why it is essential that you talk about your finances and how you are going to deal with it before you tie the knot. Here is a list of finances that you should talk about to keep your finances and marriage run smoothly.
Talk about Your Employee Benefits
After your wedding, there will now be a change of your family status. As such, this change will also affect your company benefit plans. If the both of you have a health and life insurance provided by your employer, you both have the option to choose to change your benefit elections to suit your needs.
You should change the beneficiary designations of your employee benefit accounts, life insurance policies, and retirements. You should also update your wills if you have existing ones and get new if you are planning to have children.
Check Both Your Credits
You also have to get your credit reports and discuss them with your partner before getting married. Your credit information includes the details of your credit activities. By sharing both your credit information, you will now know whether your partner pays his/her loans on time or not.
Knowing both your credit information is essential, especially if you are going to apply for a car loan or property mortgage. Creditors have strict requirements for loan application nowadays. For you to have a smooth loan application, you should know that you have a good credit history.
You Should Both Know about Your Income Taxes
After getting married, the government will require you to file your taxes as a married person. While some married couples file their taxes on a joint income tax return, there are also justifiable reasons to file your income tax separately from your spouse.
Filing your income tax as a married person separately will avail you of tax savings. Thus it is a must to discuss both your taxes before you tie the knot.
Discuss Your Spending Roles
Typically in a marriage, there is that one person who manages and pays for the bills and other household expenses. But time is changing now. In some modern families, you can notice that both husband and wife have an equal share as to the management of their finances.
You have to talk about your spending roles before you get married for you to plan the management of your finances properly. In this way, you will prevent financial conflicts.
Consider Your Investments
It can be both or either of you own an investment. If both of you have an investment account separately, you should discuss it whether you are going to keep it separate or merge your them.
By talking about your investments, you will have a clear plan for your investment goals together. It is likely that you are planning to purchase a home or invest in the education of your children.
You should discuss your investments, or you can consult investment professionals as to what steps you need to take to keep your finances run smoothly.
Takeaway
Before marriage, it is essential that you discuss your finances with your partner. The money will be an integral part of your married life, whether you like it or not. For you to keep your relationship stay strong, you should manage your finances smoothly. It is also advisable that you consult finance experts at Ashe Morgan to keep your finances in check.
