Talking financial matters before walking down the aisle is important. Agreeing on a way to co-manage your budget will avoid any surprises later on, and will allow you both to learn how to cope when faced with harder financial times.
A healthy marriage relies on love, mutual respect and understanding, but also on financial unity.
Surprisingly, most financial planners have confirmed that couples who precede thoughts of separation are not necessarily those who actually separate, because they are accustomed to discussing unpleasant subjects.
The famous «Pre-nup» (or marriage contract)
While this may seem like the least romantic thing to be discussed, establishing a marriage contract allows the couple to analyze their individual needs, together. It also allows for assets acquired before the marriage to be protected. A prenuptial agreement is particularly important in cases of:
- Pre-existing debt
- If one of the spouses operates their own business
- To protect the interests of your kids from previous relationships
Planning Major Milestones Together
Large projects that you plan on financing during your marriage should be discussed before the wedding:
- Buying a house
- Funding your childrens’ education
- Planned travels
- Planning your retirement age
Discussing these life stages in advance will allow for the both of you to complete the necessary financing steps in order to get there.
Preparing for the Worst, Before it Happens
Life is not always sunshine and roses. Things happen, therefore it is important to be prepared for the worst. Your financial planner can guide both of you through the securities that should be in place before disaster strikes, such as; a will, a mandate in the case of incapacity, mortgage insurance, life insurance or disability insurance.
Budgeting, Every Day
- Will you opt for a joint bank account, or separate ones?
- How will you split the costs of every day essentials?
These details are best to be discussed before the bills start piling in your mailbox.
Some Good News
The union of two people in holy matrimony remains a fiscal investment. It allows for cost-cutting measures and retirement income splitting.
To start your marriage off on a good foot and take advantage of all the possibilities a marriage can offer to you, contact one of our professional advisors today and establish the best financial strategies for you and your new family.
