subject: Meshing Finances In Marriage [print this page] As you are gazing into your sweetheart's eyes feeling butterflies in your stomach, you more than likely are not thinking about how much money is in their checking or savings account; or better yet knowing your fianc's credit score and outstanding debt. (If you are this probably isn't true love!) Unfortunately all of these financials will be determining your economic future as you become a married couple. All things are shared and created equal; the good with the bad. It's best to put all the information from both parties on the table to determine an action plan and how best to combine your financial lives. There are 3 simple and direct steps to help you on your path to marital financial freedom and success.
Step 1: Be Honest and Upfront
Now is not the time to be embarrassed of choices that you wish you hadn't made in the past such as running your credit card up on your summer clothes shopping spree, but rather to be forthright and upfront about all of your personal finances. You should start by going over all of your current expenses and income as well as any outstanding debts and balances. Both parties should put all the information out in the open with a judgment-free zone.
Step 2: Combining Financials
Once all the information is known to both parties there should be a plan to put into action. A good place to start is with the income. Will the income be combined or kept separate? Will the savings and checking accounts be combined? Have an open mind during this conversation as you may be surprised how these questions will be answered. After this is determined it leads to a decision in how the expenses will be handled. If the income is combined then the expenses will be paid from the combined account. If the income is kept separate then the expenses will be shared on either a percentage or individual case by case basis. For example; this was my dept so I will pay it or I will pay the mortgage and you can cover the expenses. Any plan can be successful as long as there is constant communication and accountability.
Step 3: Financial Future
An additional action plan for your financial future should be established. We could all find ways to better our economical future. Now is the time to be open to criticism and finding ways to be more efficient with your money. Create a budget and live by it. Both people need to be on the same page or it will not be successful. Brainstorm ways to boost your credit score; as you get married your credit score will be combined in some instances. Talk about retirement and savings plans. Even go so far as to talk about expectations in frequency of vacations and other luxuries.
When a couple takes the time to plan and prepare for their financial future there will certainly be more happiness in the marriage. Finances are one of the major causes of arguments and disputes among married couples. Don't let yourselves fall into this category when there is a simple 3 step solution that will lead to sure happiness.
