Money is one of the most common causes of divorce. Here’s how to put aside your discomfort and deal with it before you say "I do."
- Money can hang like a dark cloud over even the sunniest wedding day. There will now be two of you handling money together, which can double whatever angst there was before. As money is one of the most common causes of divorce, it's wise to put aside your discomfort and deal with it before you say I do. Discuss your relationships with money, your financial priorities, and how you'll plan for emergencies, large expenses, and recurring bills. And be honest about how much debt you carry, if any.
Explore topics like where you want to live and how you'll pay for it, and if having children is in your future. If you're coming into the relationship with assets, investments, or retirement accounts, discuss how they'll be combined or remain separate. If one of you has substantially more means than the other, it might be appropriate to broach the topic of drafting a prenuptial agreement for other estate planning tool to protect your wealth.
Often, one person likes to be in charge of the finances and does a good job of it. While the other loathes it. That's fine. But in the event that the bill payer becomes incapacitated, the other should know how to step in.
Keep a written plan of how bills are paid, how often, to whom, and where accounts are stored. Financial software can help with this. If you have some big purchases coming up, a budget will help you set up a savings plan to pay for them. Try budgeting for a while, at least until you get into the habit of monitoring your cash flow. Stay financially fit, friends.