Newlywed Finances: A Checklist

Before getting married, or soon after, discuss marriage finances and make a budget.

Newlywed Finances: A Checklist


In just about any long-term relationship, finances will come into play, and in a marriage, it's essential to manage finances well together. Whether you're about to get married or have already tied the knot, it's a good idea to sit down with your partner and discuss money.
Financial Talking Points
When you sit down to talk with your fiancé or spouse, begin by sharing the current state of your finances. It's important to be frank and nonjudgmental. Fudging the numbers or concealing certain items from your partner could result in serious problems later. What's important is making sure your plan for going forward is one to which you are both committed. Here are some basics to go over:
what's important to each of you when it comes to financeshow you will manage your assets (what to combine, what to keep separate)will you use the same bank account? credit cards?how you will deal with differences in incomehow you will manage the payment of expenses, and what to do if your fiancé or spouse has incurred a lot of debt.Planning for the Future
In your discussion of finances, it's worth discussing future costs, even if you can't know exactly what these will be. Do you plan on buying a house together? Having children? Taking a trip around the world? Moving? All of these things require significant financial investment. Be sure to discuss the following:
financial goals you are working towardnew furniture or other items you will purchase and own together how to save up to buy a househow to plan for having childrenhow to fund retirement plans, and any other plans do you want to put in place for the future.Making a Budget
Sit down with your partner and make a budget.
IncomeSalary or wagesBsiness incomeProperty incomeInvestment incomeAssetsBank accounts (with balances)Investments (stocks, bonds, retirement accounts)PropertyDebtsSchool loansMortgagesHome equity loansBusiness loansCredit card debtsLoans from parents or familyExpensesRent/mortgageUtilitiesFoodClothingCar/transportationSupport for children from a previous marriageInsuranceEntertainmentTravelEducationLoan and credit card paymentsTaxesRetirement contributionsOther purchases (household goods, toys, electronics, and so on)Making Your Financial Relationship Work
Once you've made these lists, consider the following:
Do you and your partner have enough income to meet your expenses?Which assets will you keep separate, and which will you share?Which expenses will you keep separate, and which will you share?What should you do if one partner isn't meeting his or her expenses?
Whatever your financial situation, it's always better to be open and honest than to be unpleasantly surprised in a moment of stress or crisis.

Copyright 2008 Nolo



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